The Auditor General has disallowed an over two hundred and fifty billion shillings ($70 Million) claim by International oil companies as recoverable costs in oil and gas explorations and drilling. The rejected costs had been inflated by the companies in order to claim more money from government when oil production begins.
The Assistant Auditor General, Keto Nyapendi Kayemba who is directly in charge of auditing the oil and gas sector says the claims were disallowed during cost recovery audits by her directorate.
The disallowing of claims by the companies according to Nyapendi Keyemba have been on the increase in the recent past. She said the claims would previously easily pass because the Office of Auditor General did not have experts in auditing oil and gas sector.
The Office of the Auditor General currently has ten members of staff with post graduate training in oil and gas-related areas.