The Nationwide Youth Service (NYS) is on the spot once more after it emerged that taxpayers could have misplaced about Sh54 million in a questionable meals supply contract.
The Public Accounts Committee (PAC) of the Nationwide Meeting heard on Thursday that the NYS awarded the contract to an organization that had not been registered.
In accordance with Auditor-Basic Edward Ouko’s report for monetary 12 months 2016/17, Annuar Investments was hurriedly registered after the cash was paid, in a suspected cover-up.
The corporate contracted to provide meals and rations to the service signed the contract on August 20, 2014 however based on data, it was registered on June 16, 2015, six months after it received the tender.
Youths Principal Secretary Francis Owino, whereas showing earlier than the PAC, defended the ministry, saying the division didn’t have contractors at the moment and relied totally on suppliers advisable by the Lands ministry.
“The State Division didn’t have contractors on the time. This necessitated the adoption of contractors from the Ministry of Lands according to Public Procurement and Disposal of Belongings Act, 2005,” Mr Owino instructed the committee.
The committee, led by chairperson Opiyo Wandayi (Ugunja) and members Otiende Amolo (Rarieda), Peter Masara (Suna West) and Kimani Kuria (Molo), faulted the ministry and accused it of sleeping on the job by blindly approving a non-existent firm, thereby occasioning an enormous lack of public funds.
Mr Wandayi stated, “Even for those who didn’t have contractors, are you telling us you entered right into a contract and within the technique of doing so didn’t care to examine the authorized standing of the corporate?”
He added, “[Someone can provide a contractor] however you will need to get the small print of the contractor. Your division should at the very least know who it’s coping with,” Mr Masara stated.
Mr Owino admitted that the division ignored the matter and knowledgeable the committee that the ministry had already launched investigations on the corporate.
“It was assumed that due diligence had been accomplished by the contracted division,” he stated.
Mr Wandayi directed that the ministry furnish the committee with all contractual paperwork.