KPLC on the spot for misappropriating Sh3 million intended for CEO search
Kenya Power Lighting Company’s board of directors is under criticism for failing to name a permanent managing director despite spending Sh3 million on the endeavor.
Rosemary Oduor, who had held the role in an acting capacity since August last year, was replaced in May by Geoffrey Muli, who was appointed by the board.
According to sources, after former Managing Director Bernard Ngugi resigned, Oduor was appointed, and it was anticipated that the struggling energy company would soon name a permanent MD.
However, suspicion about what was going on at the business known for often replacing its top executives grew when she was pushed aside.
According to latest happenings, the corporation had been looking for a substantive replacement for Ngugi for five months prior to the replacement of Oduor with Muli, but ended up with yet another interim MD.
The Auditor-General discloses that Kenya Power paid a consultant firm, Deloitte, Sh2.9 million for assistance in finding a qualified candidate for the position but the company had not implemented the agreement six months later.
In Kenya Power’s audit report for the fiscal year ending June 2022 according to the Auditor General, the business acquired a consultancy for the supply of Executive recruitment services of the Managing Director to Deloitte Consulting Limited through a contract signed on January 27, 2022.
According to the report, Deloitte was recruited to deliver services such as analysis, compilation of applicant profiles, long- and short-listing, interviewing, and recommending the MD candidate who best met the requirements.
The Auditor General alleges that Deloitte wrote to Kenya Power board chairperson Vivienne Yeda just two weeks before appointing Muli, the current interim MD, indicating that the hiring process was complete.
According to the audit report, Deloitte received payment for the whole contract amount of Sh2, 989,320 and provided the board chair with the outcomes of the preliminary and final interviews as well as a list of suggested candidates.
However, supporting documentation, such as the consultant’s reports, evaluation findings, suggestions, board minutes and resolutions on the subject, was not made available for audit scrutiny.
Additionally, no justifications were offered as to why an acting Managing Director appointment had not yet been made, according to the report.
The matter is raised by the Auditor-General, who cautions that the electric company might have spent the Sh3 million.
The expense could have been unnecessary because the position wasn’t yet filled.
The ratified initial budget for the exercise was Sh2.6 million, however it was eventually awarded at Sh2.9 million.
