Audit queries raised on Sh1.8bn ferries - Beaking Kenya News

Beaking Kenya News

Where It All Happens

Breaking Kenya News


Thursday, 6 June 2019

Audit queries raised on Sh1.8bn ferries

More by this Author
Kenya Ferry Services (KFS) is once again on the spot for failing to account for Sh1.8 billion it used to buy two ferries from Turkey.
According the Auditor-General’s report for the financial year ending June 2018 tabled in parliament, KFS was unable to confirm the validity of the building and supply of the ferries and the accuracy of the cost.
In his report, Mr Edward Ouko said KFS made a down payment of Sh598 million to the local appointed agent in August 2015, but failed to withhold the six per cent Value Added Tax (VAT) of Sh35.8 million and another 20 per cent withholding tax totalling to Sh119.6 million.
The Auditor-General faulted KFS for failing to adhere to the professional advice of Kenya Revenue Authority to subject payments to the above taxes.
The report said despite a signed agreement dated June 27, 2015, indicating that the new ferries were to be delivered after 17 months, they had not been delivered during the conduct of this audit in November last year.

No comments: