Economy

Agriculture PS faces sanctions over Sh2.8bn fertiliser deals

BOGA

Agriculture Principal Secretary Hamadi Boga. FILE PHOTO | NMG

Agriculture principal secretary Hamadi Boga risks sanctions for failing to furnish Parliament with information and documents on fertiliser imports.

The National Assembly’s Public Accounts Committee (PAC) took Prof Boga to task over procurement of subsidised fertiliser amounting to Sh2.8 billion.

“However, details of the types of fertiliser and quantities procured in the year were not provided for audit review. In addition, the criteria used in deciding how much fertiliser was to be procured including the type were not explained,” Auditor-General Nancy Gathungu told the committee.

PAC, chaired by Ugunja MP Opiyo Wandayi, heard that the State department had transferred Sh2,773,060,000 to the KCB #ticker:KCB where it had opened letters of credit for each of the suppliers.

“Computations from the bank statements provided by the KCB for each of the suppliers showed that there were funds held in the letters of credit accounts awaiting payment upon delivery of the fertiliser by the suppliers, which amounted to Sh896,425,265 as at June 30, 2019.

“Additionally, there was cash held at the Cooperative Bank of Kenya #ticker:COOP under letters of credit for suppliers of fertiliser amounting to Sh40,842,965 as at June 30, 2018.

The committee wanted to know the quantity of fertiliser procured, how it was distributed and whether there was efficiency, effectiveness, economy, and equity in the procurement and distribution.