The taxpayer dangers shedding Sh823.6 billion that the federal government superior to 72 financially-struggling parastatals within the yr ending June 2018.
Auditor Basic Edward Ouko, in his latest report on authorities funding and public enterprises (excellent loans) for the stated yr, regretted that the loans got to public entities with out basic documentation.
In line with Ouko of the loans, Sh47.52 billion are non-performing or just dormant and have fallen due for redemption at numerous dates over time.
Amongst 20 parastatals with dormant loans embody Rural Electrification Authority (Sh13.65 billion), Coast Water Service Board (Sh7 billion), Northern Water Providers Board (Sh5.39 billion) and Tanathi Water Providers Board (Sh4.four billion).
Others are Lake Victoria South Water Providers Board (Sh3 billion), Lake Victoria North Water Providers Board (Sh2.eight billion), Mumias Sugar Firm (Sh2.5 billion), Nationwide Water Conservation and Pipeline Company (Sh2.46 billion), Nationwide Irrigation Board (Sh2.26 billion) and Tana Water Providers Board (Sh1.eight billion).
“It was famous that failing establishments proceed to obtain further funding even when they’re underperforming thereby casting doubt on the standards used to find out the advance of latest loans,” it provides.
Within the report tabled within the Nationwide Meeting final week, Ouko regretted the State companies couldn’t present the annual work plans, cashbooks, ledger, trial, quarterly studies and monitoring and analysis studies for the loans issued throughout the yr.
He additionally regretted that paperwork for the willpower of the beneficiaries, phrases of the loans and the authorisation of disbursement weren’t offered for.
“This willpower seems to be exterior the division management thus the division implement selections which can be made elsewhere. That is exhibited by the continued progress of the excellent mortgage,” the report says.
Of Sh823.6 billion loans disbursed, new loans issued within the 2017/18 monetary years amounted to Sh55.9 billion but solely loans price Sh2.eight billion had been repaid whereas loans amounting to Sh3 billion had been written off.