Edward Ouko queries acquisition, payment of Sh1.5bn for Ruaraka land

The Auditor-General Edward Ouko has questioned the acquisition 13.7 acre parcel of Ruaraka land and subsequent payment of Sh1.5 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.

“I am unable to confirm whether the process of acquisition was procedural and payment of Sh1.5 billion made to the vendor is a proper charge to public funds,” Mr Ouko says in his report.

SH6M VARIANCE

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 Sh6 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 Sh206 million per acre which translates to Sh3, 262,136,690 billion inclusive of 15 percent disturbance allowance.

However, the valuation report availed to the auditors shows the total valuation was Sh3, 269,040,600, resulting in a variance of Sh6 million.

DISTURBANCE ALLOWANCE

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 Sh1.5 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 scrutiny of certificate of postal search obtained on July 2018 revealed that the property has two mortgages dated December 1981, belonging to Continental Credit Finance worth Sh21 million and another dated July 1988, belonging Kenya Posts and Telecommunications Corporation worth Sh165 million. These had not been disclosed by the time of compulsory acquisition,” reads the audit report.

GOVT LAND

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.

At the time, Dr Fred Matiang’i was the Education Cabinet Secretary (CS) and he is the one who formally wrote the request for compulsory acquisition to the NLC.

Businessman Francis Mburu was paid the Sh1.5 billion for the land, which Parliament found was ceded to the state decades ago.

CULPRITS

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.

The Ethics and Anti-Corruption Commission (EACC) also blamed Mr Matiang'i and PS Kipsang for the loss of taxpayers’ money in the land saga.

Last year, the EACC said it found that Mr Matiang’i and Mr Kipsang ignored recommendations of quality assurance and standards assessment team, which established that the land on which Ruaraka High School stands is public.

The agency also demanded that the businessman who was paid for the land deposit the cash in court.