The management of the Kenya Maritime Authority (KMA) has been put on the spot over a series of queries in procurement processes between the 2018–2019 and 2020–2021 financial years.
Appearing on Wednesday for the second consecutive day before the National Assembly Public Investments Committee on Commercial Affairs and Energy, KMA Managing Director, Engineer Martin Munga, was interrogated over queries raised by the office of the Auditor General, during the years under review.
Among the queries probed by the Committee Chaired by Pokot South Member of Parliament (MP), David Pkosing, were unconfirmed Revenues from Non-Exchange Transactions.
According to the Auditor General, monthly and annual reports on imports and export fees, were not provided for audit, even though separate records indicated that the Authority had collected merchant shopping levies totaling Sh1.6 million and a Kenya Revenue Authority (KRA) collection cost of Sh38.7 million.
“As a result, the accuracy and competence of the revenue arising from the levies of Sh 1.7 million, could not be confirmed,” reads the Auditor General Report in part.
During the probe, Mr. Munga, who has been in his position for only six (6) weeks, was cautioned that the nondisclosure of information sought by the Committee would have implications on the culpability of KMA officials when the Committee retreats to draft its Report.
“This Committee enjoys powers equivalent to those of a High Court, and our final Report is actionable by relevant authorities,” said Pkosing.
KMA Headquarters
On Tuesday, the Committee also visited KMA Headquarters in Mombasa to inspect the administration complex, whose construction has some of the audit queries under the Committee’s probe.
Members of the committee, led by Eldas MP Adan Keynan, identified cost variations totaling approximately Ksh500 million, a figure they deemed substantial.
KMA Director General Martin Munga and other key witnesses were also questioned on the increased cost, which was originally budgeted at Ksh1.7 billion but exceeded over Ksh2 billion.
“We are here to examine the books of KMA, which is housed here and to look at queries that were raised by the Auditor General and specifically about this building that we are in which is the headquarters of KMA,” said Pkosing.
“The Office of the Auditor General raised fundamental issues relating to variations. This building was designed to cost about Sh1.7B but eventually it has exceeded Sh2B. The question is what justification the bidders or contractors have in the variations,” he added.
Pkosing stressed the committee’s commitment to evaluating the value of money expended on behalf of taxpayers.
“We learned that some of the costs were associated with stabilizing the building to accommodate its 17 floors, including piling, soil stabilization, foundation protection, and other factors,” stated Pkosing.
However, the newly appointed KMA boss said the Sh500 million variation has yet to be disbursed to the contractor and is pending further discussions with the Ministry of Public Works.
The MPs hinted at the possibility of summoning former KMA Director General if he will be implicated in the ongoing investigations.
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