Auditor-General queries acquisition, payment of Sh 1.5bn for Ruaraka land


[Source: Daily Nation, by Samwel Owino]

The Auditor-General Edward Ouko has questioned the acquisition 13.7 acre parcel of Ruaraka land and subsequent payment of Sh 1.5 billion to businessman Francis Mburu, who is alleged to be the owner of the land.

Mr Ouko in his latest report for the financial year ended June 2018 tabled in the National Assembly questioned the procedure of the acquisition of the land LR NO. 7879/4 where two schools, Ruaraka High School and Drive Inn Primary School, stand.

Mr Ouko also questioned the valuation report of the National Lands Commission (NLC) for the two parcels of land which resulted in a variance of Sh 6 million that was not explained.

According to the audit report, on March 2017, the Education ministry requested NLC to commence the process leading to compulsory acquisition of the land.

In June 2017, the commission in its valuation report determined the area for acquisition as measuring 6.9 acres for Drive Inn Primary School and 6.7 acres for Ruaraka High School at Sh 206 million per acre which translates to Sh 3, 262,136,690 billion inclusive of 15 percent disturbance allowance.

However, the valuation report availed to the auditors shows the total valuation was Sh 3, 269,040,600, resulting in a variance of Sh 6 million.

Mr Ouko also says there was no justification of the payment of 15 percent disturbance allowance since the claimant of the land had not developed it.

The report further indicates that despite the Education ministry transferring Sh 1.5 billion to NLC in January last year for acquisition of the land, the property had two mortgages on it which had not been cleared by then.

A report by the Senate County Public Accounts and Investments (CPAIC) tabled in the Senate in August last year over the inquiry of the acquisition of the land showed that the parcel is public land. This means that the government bought what it already owns.

The committee recommended that Mr Matiang’i, who is now the Interior CS and Education Principal Secretary Belio Kipsang’ held responsible and if found guilty, prosecuted for the loss of Sh1.5 billion.

But the Senate shot down the report indicting the two officials in November last year.

Former NLC chairman Muhammad Swazuri was also blamed in the CPAIC’s report for failing to conduct due diligence on the land before prompting the expenditure of public funds.

[Full article: Daily Nation, by Samwel Owino]


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