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Inadequate controls in Management of Fuel Amounting to Kshs. 14,000,000

Ramji Haribhai Devani Limited was awarded the tender for the supply and delivery of fuel for Ksh 14,000,000. The Ministry of Health made an advance payment of the entire amount of Kshs.14,000,000 to the supplier based on a profoma invoice. However, the actual expenditure for the period May 2020 to July 2020 was Kshs. 2,074,764.55. The special audit established weaknesses in usage of fuel cards since the Ministry of Health did not designate fuel cards to each vehicle hence it was impossible to ascertain the amount of fuel consumed by each vehicle for the period under review.
It was not possible to trace the transaction amounts in the monthly fuel expenditure statements to respective work tickets hence the team could not confirm whether fuel expenses incurred by fuel cards marked for use by ‘Any Vehicle’, were for official assignments. There is a possibility of misuse of fuel cards especially fuel cards marked for use by ‘Any Vehicle’, as such transactions cannot be traced to drivers’ work tickets.