Kenya Insights

Tag: Kenya Prisons

  • How Prison Cartels Plotted Sh1 billion loot

    How Prison Cartels Plotted Sh1 billion loot

    The State Department for Correctional Services is on the spot for irregularly paying out Sh975.7 million to faceless supplies who made no deliveries to the Kenya Prisons in a National Youth Service (NYS) looting style.

    Auditor General’s report has revealed that the huge amount was paid to fake suppliers in respect of pending bills on behalf of many prison stations across the country.

    “Verification of the payment vouchers at the stations revealed various irregularities as…suppliers who were paid at the headquarters were not known to the stations,” Auditor-General Nancy Gathungu said.

    The AG also stated that deeper investigations unearthed how other payments of up-to Sh555,652,356 were made on behalf of various prison stations in a scheme that was executed at the headquarters of the prison’s department.

    Auditor General Nancy Gathungu [p/courtesy]
    The Prisons Department plays host to 129 correctional institutions including the nine maximum-security prisons where the unscrupulous businessmen purport to supply food items.

    The Auditor General also found out that another Sh419,976,543 of the pending bills was overpaid compared to actual deliveries the ‘ghost suppliers’ made at the various prison stations.

    Ms Gathungu said that verification of the payment vouchers at the stations showed  that ‘suppliers’paid were not even contracted to supply anything to those stations.

    Further examinations also revealed that  payment vouchers were attached to unverifiable S13 accountable documents. She added that the stations did not order for or receive ration on the dates indicated in the questionable delivery notes.

    “7 prison stations book not reflecting orders or deliveries of the same and prison stations counter receipt book register not having series of those counter receipt vouchers (S13) used,” said MS Gathungu.

    The AG who is captured in the an audit of the department books of account for the year ended June 2020 said that an audit of the historical pending bills detailed data that co-related with Treasury’s Integrated Financial Management Information System (IFMIS) and total expenditure returns at prison stations showed that an over-payment of Sh419,976,543 was made for deliveries that actually amounted to Sh190,347,882.

    The report also found that IFMIS payments amounted to Sh610,324,425 and the matter is currently being investigated by sleuths from the Ethics and Anti-Corruption Commission.

    “It should, however, be noted that the above matters regarding irregular payments, doubtful procurement and over-payments are currently under investigation by the EACC.

    Zeinab Hussein, the Principal Secretary for Correctional Services Zainab Hussein. [p/courtesy]
    The prisons department is bursted just three months after Parliament directed Correctional Services PS Zeinab Hussein to settle all the verified pending bills to suppliers who  made deliveries worth Sh6.2 billion.

    The Public Accounts Committee which is chaired by Ugunja MP Opiyo Wandayi said that the National Treasury Pending Bills Closing Committee had finalized verifying the pending bills.

    “Within two months upon adoption of this report by the House, the accounting officer must ensure that all the pending bills amounting to Sh6,204,906,533 and duly verified are fully settled.

    “A report on the same to be submitted to the National Assembly at the lapse of the aforestated two months duration,” PAC chair said in a report adopted by the parliament.

     

  • Retired Commissioner Isiah Osugo In Trouble Over Sh1.8B Theft At The Prison

    Retired Commissioner Isiah Osugo In Trouble Over Sh1.8B Theft At The Prison

    Auditor General Edward Ouko has exposed sh 1.8billion scam by Kenya Prisons department.

    Auditor General’s report exposes how Kenya Prisons paid phoney suppliers, made double payments for goods and services, procured fake bulletproof vests and jackets.

    Last month, EACC unearthed attempts to steal Sh4.8 billion through fictitious security contracts by top prison officials and the Matiangi led Interior ministry.

    This questionable payouts were dispatched during the tenure of Isaiah Osugo, The now retired Commissioner General of Kenya Prisons.

    Osugo has been holding the position for more than a decade.

    According to Ouko’s report,304.4 million paid at Prison headquarters ,on behalf of various prisons, for food rations could not be traced or accounted for.

    Ouko report has also exposed two suppliers who were paid Sh2.4 million by prison headquarters, on behalf of Kibos Medium Prison did not deliver the food.

    “Indications are that the payments were irregularly made to recipients who did not supply food to the prison,” reads part of Ouko’s report.

    Auditor General’s report revealed that Osugo swindled Sh12.4 million using forged pending bills for Kisumu Main Prison.

    Ouko also discovered cases of double payments totalling Sh22.5 million in connection with

    According to auditor general’s report, Usugo led department double paid non existing suppliers of Naivasha, Eldoret and Kakamega Prisons and Shikusa Borstal.

    “However, verification at the prisons revealed massive irregularities as the purported suppliers had never been contracted to supply food and there were no deliveries or receipts at the three prisons,” reads part of the Auditors report.

    Osugo and other senior prison bosses have been clearing multimillion fake pending bills.

    The report reveals that bills totalling to 288.6million reflected in the headquarters’ records could not be traced to the records of the prisons where food rations were allegedly delivered.

    Osugo also left cooked pending bill records worth 18.6 million for food rations. Auditor general’s report indicates the had already been paid before.

    Usugo led Prisons department is also on spot for procuring 300 substandard bulletproof and 300 bulletproof vests for Sh22.2 million and Sh20.9 million respectively.

    “Audit inspection carried out revealed that the body armour received do not have ballistic panels and cannot be used to protect staff against rifle fire, ammunition, knife stabs and sharp or pointed instruments,” reads part of Ouko’s report.

    In mid March this year, EACC  unearthed a Sh4.8 billion scandal executed via fictitious security contracts.

    The Audit also reveals that the Osugo led department double paid bills worth Sh2 million to the officer-in-charge of Naivasha Maximum Prison for construction of staff houses.

    Prisons also used 128.6 million to pay firewood suppliers countrywide without proof of delivery notes.

    Ouko report also raises a red flag on the award of a tender for construction of a perimeter wall at the Eldoret Prisons for 24.8 million.

    Auditor generals reveals that prisoners were engaged to construct the same wall despite Osugo dispatching additional Sh7.5 million on the project.

    Osugo’s department also oversaw the loss of 1.7 million on a tender for the installation of CCTV surveillance cameras at the Naivasha GK prison.

    Prisons headquarters paid 12 million for 190 five megapixels cameras, but the audit report revealed that only 158 cameras were accounted.

    “The audit further established that 52 cameras costing Sh 4.5 million installed at the reception and hospital blocks are defective and, therefore, not functioning,” reads part of Ouko’s Audit report.

    The audit report also revealed that the contractor supplied eight Power Distribution Boards instead of 30, resulting in a loss of 22 others costing Sh 550,000.