The payments are classified as arising from unavoidable and unforeseen circumstances — a move the auditors say is suspect.
“Unless there was a disaster rendering people homeless, construction of buildings cannot be classified as unavoidable and unforeseen circumstances and hence the supplementary estimates under this account were contrary to the provisions of the Constitution and PFM Act, 2012,” the audit report says.
The trail of payments is spread countrywide, pulling in Bungoma and Lamu counties which received Sh100 million each, while Lizol Chem Company was paid Sh28.6 million for construction of buildings under the special provision.
Other recipients of the money were Mindray Med Kenya (Sh159 million), Bulecon Associates (Sh42 million) and Mecoy Consultant (Sh37 million).
The report also points to loss of millions of shillings in grants to the Kenya Medical Training Centre (KMTC) where the ministry overspent Sh268.8 million and presented records that were in conflict with the electronic trail available on IFMIS, pointing to fraud.
KMTC’s records show it has pending bills (the cover for overspending) of Sh184 million while the excess expenditure is captured on IFMIS as Sh268.8 million.
“This raises a red flag on possible misappropriation of funds which might have caused the overexpenditure,” the audit says.