Members of Parliament have given the Kenya Railways Corporation (KRC) an ultimatum of three months to recover the Sh1 billion the institution paid as compensation to faceless individuals during the building of the standard gauge railway (SGR).
The legislatures unearthed the details of the payments to the unverified persons by Kenya Railways on the 24th Report on State Corporations by the Public Investments Committee (PIC) tabled in the National Assembly.
The report singles out Sh1,043,439,897 paid as compensation to persons without proper documentation. Some of the missing documentation includes ID cards, PIN certificates, and title deed surrender from the National Land Commission.
The organisation used Sh12 billion on land compensation in the 1st phase of the SGR project, however, the committee noted an overpayment of Sh14, 669,748.
“The committee recommends that the accounting officer for the KRC should ensure that the balance of overpayments is fully recovered within three months of the adoption of this report,” reads the report.
The report highlighted the need to have a concrete plan for the Sh200 million held at Chase Bank. The report indicated that the organization had not engaged with the bank, placed under receivership despite having an account with the bank.
“The accounting officer for the KRC should ensure that all the KRC deposits at Chase Bank are recovered,” reads the report.
Following the lack of supporting documents, the report forecast a loss of Sh194 million. The money was described as Rift Valley Railways (RVR) transition revenue.
“In Kenya Railways Corporation management’s admittance of absence of these records due to abrupt leaving of RVR indicated that there was a possible loss of revenue during this transition that had since been addressed,” reads the report.
The report further noted that the Kenya Railways had various parcels worth Sh24 million allocated to private developers.
The report will be tabled in parliament in its indefinite recess ahead of the General Election.