AUDIT QUERIES SH148M STATE PRIVATIZATION FUNDS

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Tens of millions of taxpayers’ money was spent on privatization of stalled government entities, says a recent report by The Auditor General.

According to the AG, Nancy Gathungu, the Privatisation Commission spent Sh148 million out of Sh163 million for the year ended June 2020 on the Kenya Meat Commission (KMC), Kenya Wine Agencies Limited (Kwal), Tourism Finance Corporation, Agro-Chemical and Food Company and five sugar millers.

“However, the privatisation programme for some of the above entities has been underway for over seven years, casting doubt on the likelihood of realising value for money from the expenditure of Sh148.6 million incurred,” said Ms Gathungu’s report.

The expenditure signified a huge increment from the Sh27.6 million the commission spent on transaction advisory services in the year ended June 2019.

In the year ended June 2020, Sh294 million was spent, taking only 34 per cent of the Sh896 million approved budget.

Following the AG’s report, the privatisation commission blamed the low absorption of funds and slow privatisation programmes on inadequate composition of its members in the period under review.

“Following the signing of the contract for transactions advisory services on March 14, 2019, the consultant submitted draft diligence reports for Kwal and KMC by February 2020 for review,” the Privatisation Commission Chief Executive Joseph Koskey said in a statement.

Mr Koskey added that the reports await consideration by the commission once fully constituted to pave way for the next steps.

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