The scam involved advertising for the sale of the vehicles in newspapers with least national circulation and concealing documentation of the bidding process.
Bidders were being asked to pay as much as less than 10 per cent of the bidding prices, suggesting collusion between the auctioneers and those purchasing the cars in an irregularity that has seen taxpayers lose millions of shillings.
Mr Ouko say a fairly new Peugeot 504 belonging to the Ministry of Labour was sold for Sh12,000 while the top of the range MM Nissan Patrol was sold for a measly Sh145,000.
Auditor General Edward Ouko has revealed a scheme in which State vehicles are being sold for as little as Sh12,000 through secretive auction.
The scam involved advertising for the sale of the vehicles in newspapers with least national circulation and concealing documentation of the bidding process.
Bidders were being asked to pay as much as less than 10 per cent of the bidding prices, suggesting collusion between the auctioneers and those purchasing the cars in an irregularity that has seen taxpayers lose millions of shillings.
Mr Ouko say a fairly new Peugeot 504 belonging to the Ministry of Labour was sold for Sh12,000 while the top of the range MM Nissan Patrol was sold for a measly Sh145,000 despite one bidder willing to pay Sh2.1 million. A Volkswagen Passat bought in 2010 for Sh3.5 million and with no visible damage was sold for Sh32,000.
“The fairly new vehicles were disposed of leaving eight old vehicles grounded in the various state departments,” he said.
The Auditor-General said an opaque process was used to hire the auctioneer. Now, Mr Ouko has asked for action to be taken against the auctioneer, State officers and others behind the collusion in the car sale scam.
The advertisement for the sale of 17 cars belonging to the Ministry of Labour was done through the People Daily on April 7 and the sales happened on April 12.
“The vehicles were grossly undervalued with some being sold below the bid prices and some attracting extraordinary bids,” said Mr Ouko.
“The advertised the sale on April 7, 2017, in one local daily instead of at least two daily newspapers of national circulation contrary to section 96(2) of the Public Procurement and Asset Disposal Act, 2015.”
He says the 17 vehicles were all under valued at Sh1.1 million.
“GK A 692Y, a Nissan Patrol attracted a bid price of Sh2.1 million but only Sh145,000 was receipted,” Mr Ouko said in a report dated July 8 Leader of Majority Aden Duale tabled in Parliament last Wednesday.
