Kenya Power has suspended 59 senior staff in its supply chain division to pave way for a forensic audit into their dealings and the company’s procurement systems.
The division led by John Ng’eno, manager of logistics & Supply Chain Sustainability (S&CS) Affairs had been temporarily shown the door days after being placed at center stage during reforms targeted towards ridign out sleaze within Kenyan Electricity Generating Co Ltd., better known as KenGenCo; this move comes just weeks following recommendations made by Presidential Taskforce On Utility Reforms And Strengthening Procurement Systems Of Electrical Equipment For Domestic Use With Annual Expenditure Ranging Over Sh5-7 billion.Kenya’s largest utility said suspension will be underway.
“The goal of the forensic audit, which will be done on the procurement systems, stock and staff, is to enhance the robustness of the company’s supply chain processes so as to anchor them on the principles of value for money, professionalism and accountability,” the company said.
The company announced that a team has been picked to temporarily take charge of the division’s operations as the audit is conducted.
“Among the recommendations that were made by the Taskforce was a review of Power Purchase Agreements (PPAs) in order to lower the cost of purchasing power from Independent Power Producers (IPPs) with the aim of securing the sector’s sustainability,” Kenya Power said.
Ngumi and his Presidential taskforce have put procurement under scrutiny for alleged dealings that are mired in corruption. They discovered substandard metering equipment, obsolete transformers holding over Sh5 billion worth of dead stock with most now worthless due to their purchase by this government-led project connecting the entire country together as one power grid system – an ambitious undertaking indeed.
The Kenyan taskforce’s report recommended that Kenya Power replace all staff in the procurement department and before fresh hiring is done, they called for outsourcing an interim team from other government agencies with demonstrated experience of procuring certain high quality engineering equipment.
It also proposed that due to its size and strategic nature, there should be one person who has final say over these purchases: The board president himself/herself; if this position isn’t already filled then it must go directly onto KAPOC or whoever will hold such power within your organization at any point during business hours on weekdays (9am-5pm).
“Kenya Power to… engage appropriate expertise on management of obsolete assets and undertake maintenance of (its) distinct parts for engineering equipment and supplies already procured,” the taskforce said.
A recent study found that the management of Kenya Power’s procurement could be improved by adopting a framework agreement on fast moving consumable goods and equipment, as well to prevent large stocks from deteriorating. In addition they recommended end-to-end enterprise resource management systems for managing all functions including warehousing & storekeeping in order to make sure there are no problems with inventory spoilage or theft risks associated with these facilities.
Staff Trimming
A recent study found that the management of Kenya Power’s procurement could be improved by adopting a framework agreement on fast moving consumable goods and equipment, as well to prevent large stocks from deteriorating. In addition they recommended end-to-end enterprise resource management systems for managing all functions including warehousing & storekeeping in order to make sure there are no problems with inventory spoilage or theft risks associated with these facilities.
