By The Weekly Vision Reporter
The first-ever audit report compiled by the Auditor General of Public Schools has exposed several financial irregularities at Maranda High School. According to the report for the year ended June 30, 2022, the school’s Board of Management (BoM) was blamed for having been involved in the irregular award of a security tender at the school.
The report says the board approved payment of Ksh. 1,281,800 for the provision of security services; however, a review of the tender evaluation minutes revealed that the fourth-lowest bidder was controversially awarded the contract out of the five companies that had tendered for the contract, contrary to Section 86(1)(a) of the Public Procurement and Asset Disposal Act, 2015, which states that successful tender shall be the one who meets any one of the following as specified in the tender document, the tender with the lowest evaluated price.
A review of Board of Management records also revealed how the chairman and members were paid Ksh. 10, 000 and Ksh. 8, 000, respectively, per sitting above the approved rates of Ksh. 5, 000 and Ksh. 4,000, respectively, contrary to the Salaries and Remuneration Commission Circular of April 16, 2014.
The report further reveals that an amount of Ksh. 1,721,250 was transferred to the Kenya Secondary School Heads Association (KSSHA), a welfare organization that draws its membership from school principals only. The organization should never have received any funding from the school, and in the circumstances, the value of the money that was transferred to KSSHA cannot be confirmed.
A review of the financial statements revealed that two bank accounts had negative balances of Ksh. 2,130,703, an indication that the cash book was overdrawn, contrary to Regulations 82(7) of the Public Finance Management (National Government) Regulations, 2015. The report also reveals a case of irregular procurement amounting to Ksh. 28,185,969 for the construction of a 2-story dorm and lagoon. It was noted that the Ministry approved the construction of the 2-story dormitory/hostel at a cost of Ksh.26 million; subsequently, the contract was awarded at a sum of Ksh.24, 343,265; but an audit inspection of June 22, 2023, and examination of payment vouchers and expenditure schedules revealed labour costs and material supplied totaling Ksh.32, 933,010, which exceeded the contract sum by Kshs.8, 589,745.
Investigations further revealed that a contract for the renovation of the Owino C dormitory was awarded at a sum of Ksh. 8,213,850; however, the payment vouchers indicated total payments of Kshs. 7,013,616 while the reported expenditure was Ksh. 13,117,003, resulting in an unexplained variance of Ksh. 6,103,387. Further, the financial statements reflect school fund income and other receipts of Ksh. 128,998,580, which includes an amount of Ksh. 12,773,793 in respect of the burned dormitory. However, the certificate of practical completion indicated that the contract sum for the renovation was Ksh.8, 213,850, resulting in an unexplained variance of Ksh.4, 559,943.
