PICCAE CALLS FOR CONTRACT TENDER DOCUMENTS AND A COPY OF LPG CONTRACT
The National Assembly Public Investments Committee on Commercial Affairs and Energy has today directed the Energy and Petroleum Regulatory Authority (EPRA) to present documents relating to the issuance of a contract to a service provider for the provision of Liquefied Petroleum Gas (LPG) compliance inspection services in March 2019.
The Committee Chaired by Hon. David Pkosing issued this directive after Members raised concerns that the Authority's responses in relation to the contract were underwhelming.
According to the Auditor-General, the Authority contracted the service provider on March 28, 2019, at a contract price of Kshs 35,809,200 inclusive of taxes, for a period of two years.
However, upon scrutiny of EPRA's accounts for the 2020/2021 Financial year, the Auditor-General indicated that the service provider was paid an amount of Kshs 43.2Million, thus occasioning an overpayment of Kshs 7.4 Million above the contract price.
EPRA Director General Mr. Daniel Kiptoo had told the Committee that Cumulatively for the two years, the estimated contract amount was over Ksh 75 Million thus there was no overpayment. The Committee was dissatisfied with the response prompting the request for further evidence.
Hon. Pkosing said there was a need for the Authority to furnish the Committee with a copy of the original contract and the relevant tender documents to be able to fully interrogate the audit queries raised.
"You need to furnish this Committee with those documents, and have your legal team accompany you to answer these questions raised by Members when you appear before us next time," said Hon. Pkosing.
Other audit concerns raised during the years under review include alleged non-compliance with Executive Order 2. of 2018 on Procurement, reports of unapproved recruitment of Personnel, and allegations of non-disclosure of donor funding.
The Committee was meeting EPRA to examine the Authority's audited accounts from Financial Year 2016/17 to 2020/2021.