JKUAT Enterprise Ltd Under Fresh Scrutiny Amid Mismanagement Allegations
The commercial arm of Jomo Kenyatta University of Agriculture and Technology (JKUAT) faces fresh scrutiny after petitioners asked Parliament to prosecute officials behind the multimillion-shilling Industrial Park flop.
The Industrial Park, a JKUAT venture for turning research into market-ready products through manufacturing and incubation, has fallen far short of expectations.
Small holder tea farmers led by Amos Nyasani want the National Assembly to dig deeper into the alleged financial mismanagement at the JKUAT Enterprises Limited on behalf of Kenyan taxpayers.
The petition comes two months after Parliament slapped the top leadership at the JKUAT Enterprise Ltd with a Sh500,000 fine for failing to provide documents concerning queries raised in the Auditor-General’s report.
JKUAT Enterprises Ltd has registered losses for four consecutive years with part of wastages linked to bloated staff at the Industrial Park, unsupported board expenses and awarding of tenders to highest bidders.
“We pray that the National Assembly recommends the prosecution of those found culpable of abusing public funds that would have otherwise been directed towards worthy undertakings such as capitation to public schools,” reads the petition in part.
They also want MPs to order JKUAT Enterprises Ltd to report within 30 days on project status, fund use, and explain why public money is still being wasted on a dead venture.
In September the top leadership of JKUAT Enterprises fumbled in their responses concerning queries raised by the National Assembly’s Public Investments Committee on Governance and Education, prompting the invocation of Standing Order 191.
For instance, the management could not explain how the entity paid suppliers Sh1.3 million for works not done, incurred arbitration cost of Sh1.74 million for delaying to pay a consultant, failed to rotate suppliers and made decisions without the board being lawfully constituted.
Standing Order 191 stipulates where a witness summoned does not appear, or appears but fails to satisfy the House or committee, the House or Committee may impose upon the witness a fine not exceeding Sh500,000.
The JKUAT Enterprises Ltd has registered losses for the fourth consecutive year and it is technically insolvent as the assets stand at Sh277 million against the liabilities of 295.7 million, hence a deficit of Sh18,75 million.
The negative working capital was an increase compared to the Sh14.3 million deficit recorded during the financial year ending June 2022.
The petitioners reckon despite the board and management indicating over the years they had taken strategic initiatives to improve the financial performance, this has not yielded the intended results.
“There are instances of use of non-prequalified or registered consultants and procurement documents reveal the consultancy services were procured from different consultants and paid Sh27.3 million,” the petitioners note.
They said no valid reason was given by the management for violating the Public Procurement and asset Disposal (PPAD) Act of 2015 requiring contracted companies to be in the pre-qualified list of registered suppliers.
A staff establishment review showed an approved workforce of 136, yet departmental assessments revealed an excess of 26 employees, contrary to the Human Resources Policies and Procedures Manual for Public Service.
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