Sh3 billion for subsidised fertilizer lost at NCPB

National Assembly Committee on Agriculture Chairman Aden Haji (center), Githunguri Mp Kago Mukuha (left) and Mogotio Mp Daniel Tuitoek inspecting fertilizer at National Cereals and Produce board (NCPB) on April 5,2018. [Mercy Kahenda, Standard

The National Cereals and Produce Board cannot account for over Sh2 billion allocated for the purchase of subsidised fertiliser, according to the Auditor General.

In his latest report tabled in the National Assembly yesterday, Edward Ouko said the amount was part of Sh3.7 billion that could not be accounted for at the department of Agriculture in the 2016-2017 fiscal year.

At least Sh2.1 billion was disbursed to the board as subsidy for purchase of fertiliser to be sold to farmers, but the board could not provide details of the farm input purchased and later sold to the farmers.

“Apart from an invoice and a schedule raised by the National Cereals and Produce Board (NCPB), no other verifiable document was produced for audit to confirm the actual quantity of fertiliser bought by NCPB, the quantity sold to the farmers and the purchase and selling price.

“Consequently, the propriety of the expenditure of Sh2,129,128,558 on subsidised fertiliser could not be ascertained,” said the report tabled by Majority Leader Aden Duale.

In August, Agriculture Principal Secretary Richard Lesiyampe and top NCPB managers were arrested and prosecuted over irregular purchase of maize.

Farmers have complained about non-payment of Sh1.9 billion for produce delivered to the board’s depots.

NCPB lost an additional Sh166 million from the Sh605,508,562 fertiliser sales. “Only an amount of Sh439,300,200 was remitted to the State Department of Agriculture and disclosed in the revenue statements for the year ended June 30, 2017. No reconciliation or explanation has been provided for the difference of Sh166,208,362,” adds the report.

The department lost another Sh1.4 billion after it collected a meagre Sh439 million on fertiliser sales out of the estimated receipts of Sh1.8 billion.

“No explanation has been given in the notes to the financial statements for failure to collect the entire estimated amount,” the report says.

Another Sh5.6 million could not be accounted for after the department spent the amount in purchasing 413 tablets, which it could not provide evidence of acquisition.

"No evidence was produced to confirm the requisition for the tablets, whether the gadgets were delivered, received and taken on charge in stores, and to whom they were distributed," queries the report.

Ouko further says a company contracted to deliver 182,000 bags of fertiliser at a total cost of Sh456 million did not deliver 17,060 bags costing Sh45 million despite being paid the full amount.