K50mil paid to NCDC without approval

Motor Vehicle Insurance Ltd made a K50 million grant to the National Capital District Commission for roadworks in the city without approval of the board chairman, secretary and the minister for finance, according to the Auditor-General’s Report for 2016.
Auditor-General Philip Nauga in his audit of MVIL books for 2015 said this money was part of non-current investments of more than K60.6 million.
“Included in this investment was the grant of K50 million paid to the National Capital District Commission under road investment grants,” he said.
“Clause 6 of the agreement states that K50 million paid by MVIL to NCDC was a grant.
“The board of MVIL had approved this grant on July 6, 2013.
“However, the board minutes was not signed by the chairman and secretary of the meeting to validate the resolution made. In addition, approval of the minister for finance in respect of this investment was not made available for my verification.
“As a result, I was unable to determine the appropriateness of including the K50 million as “investments” in the financial statements as at Dec 31, 2015.”
Nauga also found that MVIL had lost more than K20 million in a “failed project” at Koki Heights between 2008 and 2011.
“Note 13 of the financial statements disclosed fixed assets totalled K37,041,477,” he said.
“Included in the fixed assets was work in progress (WIP) valued at K20,760,099.
“This amount was spent by the company between 2008 and 2011 towards property development at Koki Heights Land.