This archive report was first published on 15 September 2019.
On September 15, 2019, outgoing Auditor General Edward Ouko tabled a damning report in Parliament, exposing massive losses at the Communications Authority of Kenya (CA).
The report, which covered the financial year 2017/2018, revealed that the CA had failed to account for Sh2.6 billion in general expenditure, including training, enforcement, computer software maintenance, corporate affairs, consumers, and medical expenses.
The auditor general also questioned the CA's handling of Sh26 million in annual frequency licence fees, with a sample of 17 payments showing unexplained and unsupported variance amounting to Sh26 million.
Furthermore, the report highlighted a breakdown of annual operating licence fees of Sh5.9 million, which contained negative entries totalling Sh802,975, for which no valid explanation was provided.
Mr Ouko also noted that invoices raised in June 2018, amounting to Sh1.3 million for annual frequency and Sh3 million for annual operating licences, were not provided for audit verification.
The CA's mandate includes licensing all systems and services in the communications industry, including telecommunications, postal, courier, broadcasting, and managing the country's frequency spectrum and numbering resources.
However, the auditor general's report raised several red flags, including the payment of Sh53 million to directors, Sh3.3 million of which was paid for broadband services without proper documentation.
Additionally, the report questioned the payment of Sh1.1 billion to employees in the form of travel allowances, house benefits, and perks, which were not authorised by the board and lacked proper documentation.
The CA was also accused of blowing Sh13 million of taxpayers' money on a one-day event in November 2016, exceeding the allowable threshold of Sh2 million.
Furthermore, the authority paid Sh20 million to a firm for an event dubbed 'Kikao Kuu' in Busia County without a signed contract agreement, contrary to the Public Procurement and Asset Disposal Act.
The auditor general also questioned Sh11 million used for the design, printing, supply, and delivery of branded give-aways, which were contracted through request for quotations instead of open tendering.
