Parliament Orders Special Audit of JKUAT Enterprise Ltd Over Suspect Board Expenses

The Public Investments Committee on Governance and Education has directed the Auditor-General to conduct a special audit on the running and management of JKUAT Enterprise Ltd.

The order was issued by Committee Chairperson, Bumula MP Jack Wanami Wamboka, after the company failed to provide a list of its board members during a session held on Monday, September 22, 2025. The committee had sought the records to address audit queries on unsupported board expenses in the 2022/23 financial year.

According to the Auditor-General’s report, some board members were paid sitting allowances without signed attendance registers to confirm their participation. The report also flagged a case where an individual, who was not listed as a board member, received board allowances despite lacking appointment records.

The audit further noted that the National Treasury’s representative on the board was appointed in November 2017, but no records showed the duration of their tenure. In addition, documents such as motor vehicle records and physical addresses of members who claimed mileage allowances were not availed.

While responding to the committee, JKUAT Enterprise CEO Erastus Mvuria said the appointment of board members is guided by the firm’s Memorandum and Articles of Association. He explained that the board comprises position holders within the university, including the Council Chair, Vice Chancellor, Deputy Vice Chancellors, and representatives from the National Treasury and the Ministry of Education.

“Some of the directors participated in meetings remotely and did not sign the physical attendance register, but their participation was recorded through the online system,” Mvuria told the MPs.

However, Wamboka dismissed the explanation and demanded a full list of board members. He pointed out that during the review period, the company only had five members instead of the required eleven.

“You do not have seven members out of the required eleven, and your quorum is six. How are you running the organization? This explains the audit query and why you are reluctant to provide the list of your board members. You are running a fraudulent organization,” Wamboka said.

The committee also raised concerns over past audit queries. For the 2021/22 financial year, the Auditor-General reported discrepancies in cash and bank balances, as well as payments for incomplete projects. One cited case was the Inpo Factory Roof Project, where the entire project cost was paid, yet the replacement of wooden roof supports with metallic ones was never done, despite payment records showing full settlement.