will enable the Bank to identify exactly how many vehicles have been boarded and will

also confirm the location of remaining vehicles. The Bank should review its fleet
management needs in respect of all projects in Kenya and in the interests of efficiency,
consider funding Ministry of Roads and Public Works to acquire, maintain and manage
the fleet of vehicles for use by Bank funded projects.

Boarding of vehicles

144. Evidence from the records provided to INT indicated that assets were boarded or being
prepared for boarding during the period audited. Boarding is a term used by GOK to
describe its procedures for the disposal of government owned assets, especially vehicles.
Boarding involves a number of processes that are designed to ensure that appropriate
vehicles are disposed of at appropriate times in a transparent manner free from conflicts
of interest. The process involves (i) pre-sale inspections of the vehicle by the local
GOK Ministry of Works garage to certify that the vehicle is not economic to repair, (ii)
approval for disposal, and (iii) the tendering of the disposal must be announced publicly,
normally in nationally distributed papers, which capture the details of the tender process
together with the indicated reserve price. The boarding process together with the
obligations under the Government Finance Management Act 2004 clearly set out the
processes for dealing with the proceeds of any disposal of assets.

145. INT’s audit showed that only some of the GOK boarding processes were followed. It
is possible that the processes were circumvented because earlier vehicle purchases were
not subject to these GOK regulations and because the vehicles were not registered as
GOK vehicles (all GOK vehicles licence plates commence with the letters ‘GKA’). It is
also possible that the boarding of vehicles was a bit more complex i.e. the complete
removal of a brand new engine from a new vehicle and placed into a private vehicle, or
simply the switch of number plates. More prevalent and likely is simply the use of the
vehicle for non-project purposes as then all its running costs were also met by the
project.

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