Shekey

x.com/i/article/2038…

Seeds of doubt: Italian state-owned oil giant Eni presented its Kenyan biofuel project as a model for sustainable air travel. Many small farmers say it’s failed them. politico.eu/article/seeds-…

[In the context of KOKO's shutdown in Kenya, let me reshare this 2023 'Reporter at Large' piece from the New Yorker] newyorker.com/magazine/2023/… 'Hot air' *The Great Cash-for-Carbon Hustle* *Offsetting has been hailed as a fix for runaway emissions and climate change—but the market’s largest firm sold millions of credits for carbon reductions that weren’t real*

The vast data centers that power artificial intelligence guzzle huge amounts of energy but they also have another alarming impact, according to new research. They are creating “heat islands,” warming the land around them by up to 16 degrees Fahrenheit, and making life hotter for more than 340 million people. cnn.it/4rZSiG5

My fellow Kenyans, Because there shall be no rest for the wicked, I have been busy looking at what is going on in Uasin Gishu County. You know, @ @UGC_TheChampion Today, I bring you my findings. In summary, my findings reveal a culture of corruption, incompetence, and lack of accountability. (1) Endemic Unsupported Expenditure. Hundreds of millions were spent without invoices, contracts, delivery notes, inspection reports, or proof of service—especially in travel, fuel, legal services and road works. (2) Chronic Procurement Corruption. (3) Stalled & Non-Functional Mega Projects. The County paid hundreds of millions for projects that are abandoned, incomplete, years after money was spent, substandard quality, etc. (4) Payroll and Wage Bill Abuse. Greed, corruption, and ghost workers abound. (5) Avoidable Legal & Tax Losses. Grand Total of the Damage? Potentially: KSh 4.82 BILLION. This is not speculative. Not conjecture. Not innuendo. This is money that is already gone, unjustified, illegally paid, stalled, or likely to be lost unless aggressively recovered. But let's start with the basics. Population: 1.2 million Monet sent in to County from National Government in 10 years of devolution: KSH 65.9 billion. Poverty rate: 40%. This, despite KSH 65 billion sent in in 10 years of devolution. Average annual income: KSH 240,000 MCAs: 45 MCAs consume: 8% of the County Budget. Travel Cost (2023-2024): KSH 328 million Findings 2023-2024 Unsupported Domestic and Travel Subsistence The County says that it incurred KSh 5,152,130 in domestic travel and subsistence costs for medical activities, but KSh 3,909,700 of this amount is unsupported. No records whatsoever. Unsupported Cash Advances The County says it incurred KSh 17,288,408 in domestic travel and subsistence costs for the Department of Roads, but KSh 6,719,470 of this amount has ZERO support. Unsupported “Medical Expenses” Payments totaling KSh 5,465,500 incurred by the Health Department for commissioning Mama Rachel Maternity Hospital were unsupported. No receipts, contracts, or invoices. Unsupported “Fuel Expenses” The Roads Department says it spent KSh 74,251,377 on fuel, oil, and lubricants within a total fuel expenditure of KSh 177,043,731, but the lack of work tickets, supplier statements, vehicle lists, and an independent fuel register means the accuracy and completeness of the entire KSh 177,043,731 cannot be confirmed and the expenditure is potentially overstated. Unsupported and Fabricated Pending Bills The County reported pending bills of KSh 642,153,876, but this figure is riddled with anomalies—including an unexplained variance of KSh 633,070,932, unsupported payables of KSh 41,465,948, an unexplained year-on-year increase of KSh 428,367,750, excluded valid invoices of KSh 31,340,000, and the absence of an ageing analysis—making the pending bills grossly unreliable and likely overstated. Illegal and Duplicated Housing Allowances The County irregularly paid KSh 5,793,756 in special house allowance—on top of already authorized rental house allowances—resulting in duplicate compensation in violation of SRC Circular REF:SRC 027/08/2015, rendering the payments irregular and unauthorized. Wasteful Spending on “Consultancy Services” The Lands and Physical Planning Department spent KSh 5,058,354 on consultancy services of unclear necessity despite having in-house staff with relevant competencies, meaning value for money for the expenditure cannot be confirmed. Procurement Corruption The County spent KSh 23,498,675 on rehabilitation of civil works, but the expenditure was marred by procurement and governance corruption—including lack of public participation, missing purchase orders, failure to notify unsuccessful bidders, absence of handover certificates, and other necessary paperwork—meaning value for money and compliance cannot be confirmed. Stalled Stadium The County paid KSh 663,428,347 for upgrading 64 Stadium under a KSh 1,163,563,925 contract, but after over two years of delays, repeated irregular extensions without performance bonds or regulatory approvals, weak contract management, and stalled works, the project stalled with KSh 500,135,578 outstanding, meaning the project objectives were not achieved and value for money cannot be confirmed. That means KSH 600 million has already been spent, and not one person in the county has benefited. Corruption in Procurement of Land The County spent KSh 129,150,000 to acquire ten parcels of land, but lack of registration and title deeds, absent public participation and feasibility studies, weak due diligence, procurement irregularities, continued private use of the land, and omission of two paid-for parcels from the financial statements mean the legality, regularity, and value for money of the land acquisitions cannot be confirmed. Corruption and Irregularities Relating to “Certified Seeds” The County says it spent KSh 17,440,814 on procurement of coffee and avocado seedlings. But it has no records. No feasibility studies. Cannot show you one beneficiary. No record of delivery. Will not tell regulators about the award either. In other words, all there is, is a claim that KSH 17 million was spent on the "project". Wasteful Legal Expenditure The County spent KSh 22,206,199 on external legal fees despite having an established Office of the County Attorney with an approved staff establishment, meaning the expenditure was avoidable, contrary to the law, and value for money cannot be confirmed. FY2022-2023 Unsupported Legal Fees The County paid KSh 6,220,000 to a private legal consultant, but lack of procurement records, case details, court attendance evidence, and supporting case files means the accuracy and legitimacy of the legal services expenditure cannot be confirmed. Corruption in Procurement of Insurance, and at Health Facilities The County says it spent KSh 321,797,248 on insurance services, but missing policy documents, unclear staff coverage, unsupported hospital payments of KSh 61,451,370, procurement irregularities, and lack of insured asset registers mean the accuracy, completeness, and value for money of the entire insurance expenditure cannot be confirmed. Illegalities in “Travel and Subsistence” The County says it paid KSh 5,660,000 in domestic travel and subsistence allowances under the THS-UCP project for meetings held outside headquarters, contrary to National Treasury Circular No. 20/2015 and without evidence of travel, meaning the accuracy and completeness of the expenditure cannot be confirmed. Unsupported Purchase of Land (KSh 23.684 million) The County recorded land acquisitions of KSh 23,684,000 for 13 parcels, but failed to provide proof of registration in the County’s name and physical inspection showed vendors still occupying the land, meaning ownership and completeness cannot be confirmed and the expenditure is potentially fictitious, overstated or irregular. Pending Bills with Inadequate Support (KSh 140.05 million) The County reported pending staff and other payables totalling KSh 140,049,649, but failed to disclose creditor identities, staff details, ageing analysis, or maintain a permanent pending-bills ledger, and included a disputed KSh 97 million land liability with inconsistent ownership and weak valuation support, rendering the balances inaccurate, incomplete, and potentially overstated. Irregular Construction of Shoe Shine Sheds (KSh 12.22 million) The County says it paid KSh 12,224,920 for shoe shine sheds under contracts totalling KSh 12.58 million, yet substructure works were not done despite being billed, safety compliance with KeNHA was not evidenced, and retention money was not deposited, constituting procurement and compliance breaches and rendering value for money unproven and costs potentially overstated. Stalled Project and Poor Workmanship at Ziwa Level (V) Hospital Project (KSh 282.21 million) The County paid KSh 282,213,621 for the Ziwa Level (V) Hospital under an KSh 806.56 million contract, yet the project was only ~45% complete, exhibited substandard works (dampness from missing damp-proofing), had no contractor on site after multiple extensions, and lacked mandatory project signage, meaning value for money on the expenditure cannot be confirmed and the costs are potentially wasted or overstated. Delayed and Unsupported Integrated Revenue Management System (KSh 4.34 million) The County paid KSh 4,340,000 (30%) for an integrated revenue system, but the vendor analyzed only 9 of the 24 required modules, failed to meet agreed milestones, provided no inspection and acceptance report, and did not submit the system’s terms of reference, making value for money unproven and the expenditure potentially wasted or overstated. Irregular Payments for Hospital Blocks (KSh 154.48 million) The County paid KSh 154,484,839 for construction of various hospital blocks before inspection and acceptance of works, in violation of Sections 48(3) and 48(4) of the Public Procurement and Asset Disposal Act, 2015, exposing the expenditure to non-performance risk and potential overstatement where works may not have met contractual standards. Salaries Paid Outside IPPD (KSh 265.88 million) The County paid KSh 265,882,114 in salaries outside the IPPD system, contrary to Treasury guidelines, exposing payroll to unauthorized payments, errors, and manipulation, and indicating weak internal controls and potentially overstated compensation costs. FY2021-2022 Inaccurate Cash and Cash Equivalents (KSh 653.89 million) The County reported KSh 653,894,949 across 33 bank accounts and one M-Pesa account, but relied on manual (non-IFMIS) reconciliations and failed to disclose an overseas education account, meaning cash balances are inaccurate and incomplete and may be misstated due to weak controls. Acquisition of Land Without Ownership Documents (KSh 84.31 million) The County fully paid KSh 84,314,997 for land acquisitions without obtaining registered ownership documents, relying only on vendors’ titles and paying in full before transfer, meaning ownership cannot be confirmed and the expenditure is potentially irregular or exposed to loss. Omission of Inherited Assets from Asset Register (KSh 15.75 billion) The County excluded assets inherited from defunct local authorities from its fixed asset register contrary to Gazette Notice No. CXXI-No.81 (21 June 2019), despite carrying a KSh 15,745,789,109 balance, making the non-current assets register inaccurate and incomplete and materially misstated. KSH 15 Billion in assets in out there, unaccounted for. Nobody knows where they are. Pending Legal Cases Against the County (KSh 496.81 million exposure) The County disclosed 109 pending cases with an estimated exposure of KSh 496,814,946, yet audit review identified over 700 active cases, creating materially understated contingent liabilities and a significant risk to future cash flows despite stated mitigation measures. Non-Compliance with Wage Bill Fiscal Responsibility (35% Rule) The County’s wage bill of KSh 3,612,444,534 consumed 39% of total revenue (KSh 9,265,267,117), exceeding the statutory 35% ceiling under Regulation 25(1)(b) of the PFM (County Governments) Regulations, 2015, thereby breaching fiscal responsibility principles and constraining funds available for development and service delivery. Salaries Paid Outside IPPD System (KSh 46.91 million) The County paid KSh 46,912,273 in salaries and allowances outside the IPPD, contrary to National Treasury guidelines, without justification, exposing payroll to unauthorized payments, errors, and manipulation, and indicating weak payroll controls and potentially overstated personnel costs. Shared Bank Account Numbers on Payroll (High Fraud Risk) Audit review found staff members and interns sharing identical bank codes, branches, and account numbers that were not joint accounts, a clear indication of ghost workers. Irregular Legal Fees and Arbitration Payments (KSh 46.53 million) The County paid ~KSh 46,526,089 to six law firms without evidence of competitive procurement, value-for-money assessments, mandatory quarterly framework reports, or PPRA reporting, breaching the PPADA and rendering the payments unsupported, non-competitive, and potentially overstated (noting an internal inconsistency between the KSh 40.53m and KSh 46.53m figures disclosed). Completed but Unutilized 70-Bed Maternity Ward (KSh 59.87 million) The County paid KSh 59,871,749 (~94%) for a 70-bed maternity ward at West Health Centre that was completed but not in use, with payments made years after the performance bond expired, indicating serious contract management failures and poor value for money despite near-full payment. Irregular and Illegal Consultancy Procurement for 64 Stadium Upgrade (KSh 10.85 million) The County paid KSh 10,848,800 for consultancy services under a KSh 56.8 million contract without documenting reasons for bidder selection, failing to report awards to PPRA, and allowing work to proceed to ~48.8% after the performance bond expired, constituting procurement law breaches and exposing the expenditure to non-performance and value-for-money risks. Unreported Equipment Hire Contracts for Road Works (KSh 94.15 million) The County says that it spent KSh 94,153,028 on hiring construction equipment for assorted roads, but failed to report the awarded contracts to PPRA or publicly disclose them as required, undermining procurement transparency and accountability and exposing the expenditure to compliance risk. Unsupported Road Construction Costs at Ziwa Township (KSh 29.39 million) The County paid KSh 29,388,717 for Ziwa Township road works, but key cost components (preliminaries, supervisory services, and HIV/AIDS awareness) lacked mandatory site registers, certified payment certificates, and signed reports, rendering the expenditure unsupported and potentially overstated. Unsupported Expenditure on Racecourse–Oletebes–Pastrol Centre–Marriot Junction Road (KSh 106.51 million) The County paid KSh 106,505,439 under a KSh 130.71 million road contract, but failed to justify bidder selection, did not report the award to PPRA, and lacked mandatory support for major cost items, rendering the expenditure unsupported, non-compliant, and potentially overstated. Unsupported Cost Variances in Eldoret Infrastructure Works (KSh 20.01 million variance) The County paid KSh 26,356,763 for infrastructure works in Eldoret Municipality, yet interim certificates showed an unexplained KSh 20,010,114 variance between billed earthworks and expenditure to date, far exceeding statutory variation limits, indicating unsupported costs, possible overbilling, and procurement non-compliance. Unsupported Expenditure on Miyako–Maxxis Tagore / Ndupawa–Fish Point Paving (KSh 62.60 million) The County says that it paid KSh 62,597,829 for paving works, but failed to justify bidder selection, and paid unsupported costs for preliminaries, without required site and certification documents, rendering the expenditure non-compliant, unsupported, and potentially overstated FY2020-2021 Unsupported Air Ticketing Expenditure (KSh 21.11 million) The County says it paid KSh 21,111,505 for air ticketing services without evidence of competitive procurement, tickets, boarding passes, etc. No evidence whatsoever. Unconfirmed Hospitality and Conference Expenditure (KSh 5.51 million) The County says that incurred KSh 5,508,420 on conferences, workshops, and hotel services. Asked for evidence such as attendance lists, programs, or work tickets, it had one. Unsupported Legal Fees (KSh 27.74 million) The County paid KSh 27,741,965 in legal fees without procurement records (advertisements, shortlisting, evaluation reports, prequalification lists) or a detailed fee breakdown, rendering the expenditure unsupported, irregular, and potentially overstated Unsupported Cash and Cash Equivalents (KSh 2.96 billion) The County reported KSh 2,955,008,825 in cash and cash equivalents across 32 bank accounts, but prepared most reconciliations manually (outside IFMIS) and omitted an overseas education account, meaning the cash balance is inaccurate, incomplete, and exposed to control failures and misstatement risk. Unsupported Acquisition of Land (KSh 43.62 million) The County paid KSh 43,615,064 to three vendors for land purchases without valuation reports or title deeds, meaning ownership, accuracy, and completeness cannot be confirmed and the expenditure is potentially irregular or exposed to loss. Non-Compliance with Wage Bill Fiscal Discipline (35% Rule Breach) The County’s wage bill of KSh 3,568,468,671 accounted for 39% of total receipts (KSh 9,086,172,431), exceeding the statutory 35% ceiling under Regulation 25(1)(b) of the PFM (County Governments) Regulations, 2015, constituting a clear breach of fiscal discipline and constraining resources for development and service delivery. Irregular Payment of Salaries Outside IPPD (KSh 257.66 million) The County paid KSh 257,655,535 in salaries outside the IPPD system, contrary to National Treasury Circular No. 9/2017, breaching payroll control requirements and exposing the wage bill to unauthorized payments, errors, and fraud risk. So - KSH 257 million in salaries paid outside the digital system. Square this observation with what I told you up there (and below), that there were people with "shared bank accounts" - for accounts that had only one name! Duplicate Payroll Details and Irregular Salary Payments (KSh 238,595) Audit review found 237 employees sharing bank accounts or similar ID numbers. Ghost workers. The Auditor General was unable to quantify the money stolen this way. In addition to this, there were instances of double payments totaling KSh 238,595, indicating ghost-worker risk, weak payroll controls, and potential loss of public funds. Nugatory Expenditure on Tax Penalties and Interest (KSh 23.45 million) The County paid KSh 23,449,819 to KRA in tax penalties, and interest arising from non-compliance with tax laws (Income Tax Act, VAT Act, Tax Procedures Act), stemming from earlier under-declarations and control failures, constituting avoidable (nugatory) expenditure and poor fiscal discipline. KRA Tax Demand and Breakdown (KSh 561.35 million) KRA issued a demand on 4 May 2021 for KSh 561,354,707 arising from non-compliance with the Income Tax Act, VAT Act, and Tax Procedures Act for the period July 2015–June 2018, comprising principal tax of KSh 83,449,819, penalties of KSh 255,098,872, and interest of KSh 64,724,588, reflecting material under-declarations versus audited financial statements and resulting in substantial, avoidable fiscal exposure. Proposed Erection and Completion of Ziwa Level 5 Hospital – Abandoned and Re-contracted Works (KSh 205.17 million) The County paid KSh 112,555,388 during 2020–2021 for Ziwa Level 5 Hospital works, on top of earlier payments, but the project exhibits abandoned initial works, weak contract management, and questionable re-procurement. An initial KSh 93.48 million contract (2015) stalled with minimal works done, yet KSh 9.85 million was paid without commensurate value. A new KSh 806.56 million contract (2020) was awarded for largely similar scope without evidence of formal upgrading to Level 5, followed by unjustified extensions from 40 weeks to 104 weeks plus an additional 8 months. By February 2022, KSh 205,171,868 (~25% of the contract) had been paid when the project should have been complete, indicating serious planning, procurement, and oversight failures and a high risk of poor value for money for funds already invested. Irregular Procurement and Implementation of Chicks and Semen Project (KSh 8.86 million) The County advanced KSh 8,859,580 for delivery of chicks and semen, but over 56,972 chicks were undelivered, beneficiary groups were improperly selected, and inspection and monitoring were not conducted, resulting in non-compliance with project guidelines and unproven value for money for the expenditure. @KenyaGovernors @MoGAbdi @FlavNasmbu @justice4_254 @NAssemblyKE @Senate_KE @GovernorBii