Rural Electrification and Renewable Energy Corporation on the spot over Sh571m survey

Rural Electrification and Energy Corporation (REREC) CEO Peter Mbugua when he appeared before National Assembly Departmental Committee on Energy on March 16, 2021.

Photo credit: Jeff Angote | Nation Media Group

The Auditor-General has raised queries over the manner in which the Rural Electrification and Renewable Energy Corporation’s (Rerec) payment of Sh571 million to three survey firms.

Rerec, the Auditor-General says in a 2020/21 report, paid Sh571,062,727 against procurement laws and failed to show proof of the work. 

“In addition, there was no evidence of budgeting for the services, their inclusion in the annual procurement plan and competitive procurement. This was contrary to Section 45(3)(a) of the Public Procurement and Asset Disposal Act, 2015 which states that all procurement processes shall be within the approved budget of the procuring entity and shall be planned by the procuring entity concerned through an annual procurement plan,” the audit report reads.

The report further stated that the services were not supported by local service orders, contract agreements and reports by the three firms indicating the topographical maps and way leaves.

“In the circumstances, the regularity of the expenditure of Sh571,062,727 paid to three firms for land survey services could not be confirmed,” Auditor-General Nancy Gathungu stated in the report signed on September 26, 2022.

Delayed projects

The report further stated that a review showed some of the 436 projects under implementation by Rerec had been delayed.

The 436 projects are valued at Sh2.9 billion and the Auditor-General observes that “in the circumstances, value for money has not been realised due to the delay in implementation.”

During the financial year under review, “18,756 defective poles were reported and in March 2022 verification revealed replacements of only 15,035 resulting to 3,721 unreplaced poles. In addition, the procurement of the poles was not supported with contract documents, tender evaluation report and inspection and acceptance committee reports,” the report stated.