KSh12 billion meant for land compensation under SGR missing
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Kenya Railway Corporation cannot account for KSh12 billion meant for land compensations under Standard Gauge Railway (SGR) Phase one
Kenya Railway Corporation cannot account for KSh12 billion meant for land compensations under Standard Gauge Railway (SGR) Phase one.
According to a report by the Public Investments Committee, Commercial Affairs, and Energy states, supporting documents for compensations amounting to Sh 12 billion to the Project Affected Persons (PAPS) including a list of beneficiaries were not provided.
Also not provided for audit review were copies of National Identity Cards, Personal Identification Number (PIN) certificates, and title deed surrenders from the National Land Commission.
According to the report published in the local dailies, Kenya Railways also made overpayments of land compensations amounting to Sh14 .7 million.
This was made to beneficiaries who were paid Sh15.8 million instead of the entitlement KSh 1.1 million.
“In the circumstances, the accuracy and propriety of the unsupported payments and overpayments of Sh1. 1 billion and Sh8.9 million respectively on land compensation could not be confirmed,” reads the report.
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The statement of profit or loss indicates that SGR freight revenue was Sh12.2 billion but this differs from the Kenya Ports Authority (KPA) revenue amount of Sh8.9 billion resulting in an unreconciled variance of Sh3.1 billion.
Further, although the Corporation generates invoices to KPA using the Freight Management System (FMS), the debtor’s statement indicating the level of indebtedness was not provided for audit review.
“In the circumstances, the accuracy and completeness of the reported main income of Sh14.6 billion for the year ended June 30, 2020, could not be confirmed,” reads the report.
According to the report, the company’s current liabilities exceeded its current assets by Sh9.3 billion as of June 30, 2020.
The company has remained in a negative working capital position for the second consecutive year (from FY 2018/19 and FY 2019/20).
The MPs further note that the corporation continues to perform dismally with the statement of comprehensive income for the year ended 30 June 2020 reflecting an operating loss of Sh24.2 billion compared to a loss of Sh8.5 billion for the year ended June 30, 2019.
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