By LUKE AWICH
MPs have ordered a forensic audit of troubled Moi University in the face of myriad questions raised in the management of the institution.
National Assembly’s Public Investment Committee on Governance and Education wants Auditor General Nancy Gathungu to conduct a holistic audit of the institution and avail the report within 60 days.
The audit, which focuses on criminality and fraud, goes back to five years.
During the audit period, the committee also directed that the university freeze the implementation of new projects.
The institution will also not engage in the hiring of any staff during the 60-day period. “The committee directs the Auditor General to do a holistic forensic audit of five years backward and give us a report within the next two months,” Bumula MP Wanami Wamboka who chairs the committee directed.
“During the period, this committee freezes new projects; there will be no recruitment of new persons.”
The development was reached after what MPs claim is an entrenched mismanagement and misappropriation in the university. University Vice Chancellor Prof Isaac Kosgey was appearing before the Wanami-led committee over 2018/19 and 2010/21 audit queries which amongst others had flagged the acquisition of the loss-making Rivertex East Africa Limited.
Education CS Julius Migos and Higher Education PS Beatrice Inyangala also attended the session.
Migos while backing the directive said the audit should be holistic to bring out the exact problem facing the institution. Initially, the committee had recommended an audit of the Rivaertex deal.
“The forensic audit should not be limited to the issue (Rivertex East Africa Limited) only, it should be comprehensive,” the CS told the committee. The auditor had also flagged the Sh29.8 million gate.
The university has also been in trouble for the irregular lease of half of the 3,000 acres of the institution's land to a private investor. The unnamed investor, who has not paid a coin to the university, has ploughed the land.
“This is a university that is in ICU, if we don’t save it now, then everything will go down,” said Narok Woman Rep Rebecca Tonkei who is a member of the committee.
In the report, Gathungu has questioned huge financial investments made by Moi University in Rivatex East Africa Limited.
She said in her latest audit report covering 2019-/20 that the investment made by the university in Rivatex was not captured in the statement of its financial position.
Presentation of the financial position of the university was not in line with audit requirements.
The requirements are that when preparing consolidated financial statements, an entity combines the financial statements of the controlling entity and its controlled entities line by line.
The financial statement, she said, should outline assets, liabilities, net assets or equity, revenue and expenses.
Moi University, which owns and controls Rivatex, should have clearly indicated the details in its financial records.
Gathungu said a comparison of the amounts in the financial statements of the Moi University and Rivatex East Africa Limited as at June 30, 2020, exposed several inconsistencies.
In part of its financial records under miscellaneous, Moi University expense said it used Sh24.7 million on the textile firm. The records, however, do not reflect such expenditure.