The Nationwide Cereals and Produce Board (NCPB) can not account for Sh2.three billion realised from the sale of various kinds of fertilisers, the newest audit report tabled in Parliament has revealed.
The report by the outgoing Auditor Basic Edward Ouko for the monetary 12 months ended June 30, 2018 signifies that the produce board couldn’t account for Sh2.three billion realised from the sale of two,303,235 million luggage of fertiliser.
In response to the report, NCPB did not financial institution all income realised from the sale of native blends of fertiliser that have been procured by the State division of Agriculture to Kenya Industrial Financial institution for onward transmission to the assertion division’s account on the Central Financial institution of Kenya.
In the course of the 12 months below assessment, NCPB bought fertilisers to farmers at subsidised costs of Sh1,500 for a 50kg bag of all planting fertilisers like DAP and NPK blends and all prime dressing fertilisers reminiscent of CAN, UREA and Sh1,300 for a 50kg bag of Sulphate Ammonia.
Mr Ouko faulted the Ministry of Agriculture and NCPB for failing to signal any type of settlement on the way to deal with the proceeds realised from the sale of the imported fertiliser in addition to the blended fertilisers.
“No proof was supplied to point out that the State division carried out any reconciliations for gross sales made and amount delivered by or excellent from every of the suppliers as at June 30,2018,” reads the audit report.
Data supplied to auditors point out that 1,200,000 luggage of DAP, 1,014,000 luggage of CAN, 100,000 luggage of NPK, 50,000 luggage of mix 4 and 24,000 of mix 9 fertilisers have been distributed to varied counties for each the brief rains in October 2017 and lengthy rains in February 2018.
The auditor nevertheless revealed in his report that an extra suspicious 200,000 luggage of DAP fertiliser have been launched into the system, and as well as additionally it is not clear how 100,000 luggage of NPK, 50,000 luggage of mix 4 and 24,000 luggage of mix 9 have been distributed.
The report additionally revealed that 1,014,000 luggage of CAN kind of fertiliser delivered by an organization often known as M/s Export Buying and selling Firm Restricted was discovered to be of poor high quality and its distribution was subsequently suspended.
Nonetheless, it’s not clear how the fertiliser was cleared and ultimately distributed to farmers.
Regardless of warning from the Ministry of Agriculture that it was not appropriate for maize to be saved for greater than six months within the silos to keep away from deterioration and lack of worth, auditors discovered that by the top of final 12 months, NCPB has been holding for six months now two million luggage in its silos throughout the nation.
The produce board can also be on the spot over unaccounted hundreds of thousands luggage of maize.
In response to the report, Strategic Grain Reserve Fund exhibits that it had a inventory of three,913,098 luggage of maize on the finish of final 12 months whereas information on the NCPB shops exhibits that it had 6,521,481 throughout the identical interval leaving unaccounted 2.6 million luggage of maize.