Raila office, KAA in row over audit report


Published on 01/02/2009

By Joseph Murimi

A row is brewing between the Prime Minister’s office and the Kenya Airports Authority (KAA) over an audit report indicting the management.

And KAA has prepared a counter-report responding to queries raised by the audit, which they have trashed as “shallow and speculative”.

The KAA board met last week and dismissed the document, prepared by the Efficiency Monitoring Unit (EMU) and the Inspectorate of State Corporations based at PM Raila Odinga’s office.

They called for action against Managing Director George Muhoho over alleged mismanagement.

Muhoho

But Mr Muhoho has hit back, saying the two teams did not discuss the issues raised in the audit with KAA management and the end report was one-sided and shallow.

‘Factual errors’

Speaking after the board meeting, Muhoho said the organisation was not asked to respond to the queries raised. In the counter-report, KAA says the issues raised were never discussed with KAA as would be expected in a transparent audit.

“It is unfortunate the team of auditors took more than 15 months to prepare the report the end of which is a shallow one that contains incorrect statements and concentrates on individuals rather than processes,’’ says the KAA report.

Muhoho said the report drew serious conclusions from speculative premises. He said the audit was not given sufficient time and consultation, adding that most of the issues would have been explained and resolved.

The MD said the report had “factual errors”, which could have been corrected if the auditors had sought answers from the management.

The report recommends that action be taken against Muhoho and that the Kenya Anti-Corruption Commission (Kacc) carry out further investigation.

The report accuses Muhoho of authorising advance payments in a Sh308 million contract, which is alleged to have contravened financial regulations.

Settle scores

He was also accused of awarding a Sh17 million contract for repair works at the Kisumu Airport without competitive bidding in contravention of procurement regulations.

But Muhoho has dismissed the allegations and said the auditors should not be used to settle scores.

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