Kenya's largest referral hospital listed among top state firm looters in damning audit report

The report comes after President Kenyatta on Wednesday put on notice government officers who engage in corruption.

In a damning report by Auditor-General Edward Ouko, the corporations as well as constitutional commissions have been blamed for wasting public funds owing to failure to follow procurement laws and over-payment of allowances.

Mr Ouko also pointed out non-remittance of employees’ statutory deductions and a general disregard for public finance management principles among other issues that have led to embezzlement of funds.

The report comes after President Uhuru Kenyatta on Wednesday put on notice government officers who engage in corruption.

National Treasury CS Henry Rotich announced austerity measures in the public sector in a bid to bridge the revenue gap.

The government is struggling to finance its current budget, with an Sh84 billion shortfall in revenue collection targets, besides the huge foreign debt it has to service.

Here are the state firms named as top looters in the Auditor General's latest report:

Kenyatta National Hospital

At Kenya's largest referral hospital, Sh841.4 million is reported to have been lost in a medical service contract, Sh411.8 million of which relates to the National Hospital Insurance Fund and Sh415.6 million to the free maternity programme.

The auditor has also cited anomalies in the expenditure of Sh7.7 billion in employee costs and the use of Sh500.2 million in overtime and medical allowances for the hospital’s doctors and nurses.

There was also an over-payment of Sh55.9 million to a contractor for the refurbishment of the hospital’s private wing despite leaving the building with broken doors and poor paint work.

Mr Ouko also questioned the payment of Sh6.4 million for the provision of hot water at the hospital, saying the system only worked for five months in 2015 and broke down.

The report also indicates that Sh21.4 million was paid in legal fees without the approval of the Attorney-General

National Social Security Fund (NSSF)

The agency responsible for distribution of retirement funds to employees is said to hold Sh 764 million in a suspense account due to lack of proper details of members from employers.

The purchase of Hazina Plaza in Mombasa at Sh450 million in 1994 has also been questioned, with the report saying that it has remained partially closed since 2001 due to failure by the tenant to pay rent.

Geothermal Development Corporation

Mr Ouko says the firm failed to pay Sh1.4 billion in corporate income tax for the 2015 financial year despite a Sh405.6 million Kenya Revenue Authority penalty for the delay.

The procurement of rig move services for 40 rigs at Sh42.7 million is a subject of investigations by the Ethics and Anti-Corruption Commission over possible illegalities.

Kenya Pipeline Company

The report accuses the pipeline corporation for acquiring parcels of land worth Sh1.9 billion without title deeds.

The auditor has also questioned the procurement of hydrant pit valves at Sh655.9 million through direct procurement, contrary to the requirements of the Public Procurement and Disposal Act of 2005.

National Land Commission

NLC is on the spot for failing to open an account to deposit the Sh19 million it spent on local and domestic travel.

The amount was instead banked in a personal account at the National Bank of Kenya, where several withdrawals were later made.

Uwezo Fund

The youth and women's flagship programme is on the spot for failure to prepare bank reconciliations for nine accounts worth Sh1.8 billion.

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