The project, implemented by the Kenya National Highways Authority (KeNHA), aims to enhance connectivity between Kenya, Somalia, and the greater Horn of Africa region.
The Auditor General states that KeNHA received more than what was budgeted for from the donor, the World Bank, and went on to spend the entire amount, plus additional funds, without authorisation. No explanation was provided for the over-expenditure, according to the OAG.
The excess expenditure is described as “unauthorised” because it was incurred without being budgeted for and without the express approval of the donor.
The agency had budgeted Sh370 million for the stated financial year, but the World Bank disbursed Sh975.3 million, an overshoot of 164 per cent.
A section of the Auditor General’s report reads:
“The statement of comparison of budget and actual amounts reflects final receipts budget and actual amounts on a comparable basis of Kshs. 370,000,000 and Kshs. 975,298,123 respectively, resulting in overfunding of Kshs. 605,298,123 or 164% of the budget.”
Despite receiving Sh975.3 million, significantly above the projected amount, the agency went on to spend Sh1,125,672,290 against the actual disbursement of Sh975,298,123. This represents a 15 per cent overspend beyond the donor’s contribution.
The report continues:
“…the overfunding and over-utilisation of 164% and 15% respectively were not explained, as required by the International Public Sector Accounting Standards Board (IPSASB) Financial Statement Presentation Template. The expenditure amounts to unauthorised spending, as it had not been budgeted for and no letter of no objection was availed from the donor.”
The report does not specify how the unauthorised and unexplained funds were spent.
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