The (KPLC) Board of Directors held 90 meetings in one year translating to a meeting every four days hence becoming operational in nature. Out of the 90 Board meetings, 21 were full Board meetings and 69 were held by Board Committees
A report by the Auditor General for the year 2020/2021 reveals how a former CS in the ministry of energy approved unnecessary board meetings at Kenya Power and Lighting Company (KPLC) which resulted in extra expenditures in terms of allowances. The report says that the board under the chairmanship of Vivienne Yeda, failed to observe guidelines on Board of Directors meetings.
The Office of the President in a circular referenced OP/CAB.9/1A dated 11th March 2020 provided that board meetings should be restricted to a minimum of four as provided for in the State Corporations Act and capped at a maximum of six board seatings for each financial year. The same principle should apply to respective Committees of the Board.
The Circular further requires that any extra board meeting (including Special Board meetings) above the maximum number specified shall require a justification by the board as well as the source of funds and the implications thereof. It is a mandatory requirement that in an event that the board has to hold extra meetings, a request shall be submitted for approval to the relevant Cabinet Secretary, in consultation with the State Corporations Advisory Committee.
However, during the year under review, the Board of Directors held 90 meetings translating to a Board meeting every four days hence becoming operational in nature. Out of the 90 Board meetings, 21 were full Board meetings and 69 were held by Board Committees.
The report reveals that the justification for the approval request to the Cabinet Secretary was submitted and granted, but the source of funds and the cost implication due to the high number of extra meetings were not factored in as there was no approved budget reallocation.
What is now being asked is why the Cabinet Secretary approved 90 board meetings yet there was no budget or allocation for the extra meetings and the justification of why the board had to meet after every four days earning huge allowances.
