REPORT: Kenyan University Spends Ksh.29.8 Million To Build A Gate
According to an audit report, Moi University’s management spent a total of Ksh.29.8 million on two separate projects to build the higher learning institution’s gate.
Moi University Vice Chancellor Prof. Isaac Kosgey stated that the initial budget was Ksh.4.8 million, but it was abandoned due to the gate being on a road reserve.
Kosgey was speaking during his appearance before the National Assembly’s Public Investments Committee on Education on Wednesday.
Prof. Kosgey told the Bumula MP Jack Wamboka-led committee that the university then bid for the construction of a new gate at a cost of Ksh.25 million, raising audit concerns.
“We were forced to abandon the first project because we were advised by Kenya Rural Roads Authority (KeRRA) that the gate was on a road reserve,” stated the Vice Chancellor.
Misuse of funds at Moi University
— Citizen TV Kenya (@citizentvkenya) September 18, 2024
Moi University VC put to task over misuse of funds
Professor Kosgey was at pains to explain use of Ksh. 30 M on gate
Fees deposited in wrong accounts, withdrawn by unscrupulous staff#JKLive@KoinangeJeff pic.twitter.com/pbKfvSO5Pi
Members of the committee questioned how the university had paid the entire contract amount without the contractor finishing the building of the gate.
“You build a gate of Ksh.24 million and yet you are insolvent? What is on this gate, is it a storied gate?” Committee Chair Wamboka posed.
The committee also heard how university employees diverted millions of shillings in school fees to a private bank account.
According to the audit report, the employees diverted Ksh.7.7 million meant for Moi University to their Moi University Welfare account.
Prof. Kosgey acknowledged that this was a case of fraud, but added that once discovered, appropriate action was taken.
“It was a case of fraud where some employees colluded with the bank to fleece the school,” he told the MPs.
The response infuriated committee members, who demanded to know what action was taken against the aforementioned employees.
“We did not take them to court, instead we took them through a disciplinary process and sacked them, but one of them appealed and he is back at the institution,” Prof. Kosgey stated.
In a difficult afternoon for the Vice Chancellor, it was revealed that the cash-strapped university had received a Ksh.3 billion loan from Exim Bank to acquire textile company Rivatex.
The committee heard that management spent Ksh.600 million to buy the company before the Treasury extended another Ksh.3 billion loan ostensibly to upgrade the facility with new equipment.
This came after it was revealed that the textile company was on a losing streak, reporting a Ksh.300 million loss for the fiscal year ending June 2023.
“Your core mandate is education but you detour and invest in a company that is not functional. There is more to be done on this,” observed Wamboka.
The MPs pressed for answers as to why the varsity, through Treasury, chose Ksh.3 billion when only 600 students out of 30,000 pursue textile-related courses.
“If you were given Ksh.3 billion, would you not improve learning facilities? Are you getting value for money?” Wamboka asked, saying it beats logic why a cash-strapped university would opt for a non-priority project.
He said: “You have more urgent needs but opted to take a loan and pump it in textile which only serves a small component of production.”
Prof. Kosgey stated that the university was in liquidation when the decision to purchase the textile firm was made.
“We had money up to 2008 and it was decided we buy Rivatex as a lab for our students. In 2017, the government came in and there was a discussion on it and we used Ksh.600 million,” he stated.
REPORT: Kenyan University Spends Ksh.29.8 Million To Build A Gate
