PRUDENT PLANNING?

Stalled Sh3.2 billion county assembly projects flagged

Auditor questions 13 counties' plans to build assembly chambers, speakers' residences

In Summary

• Kakamega's Sh500 million offices stalled after land dispute

• Baringo paid Sh31 million to contractor for works not finished four years later

Auditor Genral Edward Ouko
Auditor Genral Edward Ouko
Image: FILE

Plans to construct new assembly chambers and residences for House speakers have been questioned by the Auditor General citing a total Sh3.2 billion projects.

The projects were undertaken by Baringo, Bungoma, Elgeyo Marakwet, Embu, Kajiado, Kakamega, Kwale, Murang’a, Nandi, Nyamira, Samburu, Turkana and West Pokot county assemblies.

Most construction works have stalled — some beyond the contract periods — raising the question of whether due diligence was conducted.

Auditor General Edward Ouko, in reports for the 2017-18, exposes blatant breaches of the law, in some cases imposing extra costs on the taxpayer.

Works on Sh500 million ultra-modern offices in Kakamega have stalled following a land dispute.

The contractor, after the county failed to honour his Sh9 million claim, sued for damages. After losing in a lower court, he went to the High Court.

The contractor was demanding Sh91 million, citing accrued interest, idle labour and equipment.

“There is no evidence of efforts by the Kakamega assembly to resolve the land case which is pending for the last three years. No budget has been approved for the project in the last two years,” the auditor reported.

Embu may face penalties and interest following a court case that stopped the county from paying Sh29 million claimed by a contractor for work on a Sh325 million office complex.

In August 2015, the High Court granted conservatory orders restraining payout to any person or firm for the works, hence, stalling of the block. 

“However, the Sh29 million was not disclosed in the financial statements as part of the pending bills as at June 2018,” Ouko said.

The auditor further queried why Kajiado paid Sh25 million in advance to a "broke" contractor for works on Sh557 million county assembly chambers.

“Although the reasons cited for this were that the contractor was facing financial difficulties, there was no evidence the contractor requested the advance,” Ouko said.

Kwalewas reprimanded over Sh7 million paid for the construction of the speakers’ residence on land for which the county could not prove ownership.

Further, the contract sum varied by Sh11 million, raising the project cost to Sh58 million. This difference violates the law requiring separate tendering for projects whose costs rise by more than 25 per cent.

“The county assembly has not been able to obtain ownership documents for the part of the construction site measuring 0.41 hectares. Consequently, the propriety and value for money spent on the project could not be confirmed,” Ouko said.

Murang’a has been unable to complete works on the assembly chambers after the contractor terminated the agreement citing delayed payment of Sh33 million.

"The works were 43 per cent complete when the county hired a new contractor at Sh49 million," the audit team said.

Works in Nandi are ongoing but questions abound over Sh94 million paid to the contractor without proof of a bill of quantities, contract agreement and structural designs.

Bungoma was found in breach of the law by extending the contract period by a year to May for works on the Sh447 million office complex.

The contract was awarded to a local contractor in 2016 but auditors found out the construction was still going on, three months after its deadline.

“Extension requires the approval of the tender evaluation committee,” Ouko said.

Baringo paid  Sh31 million to a contractor who is yet to finish works on offices for assembly staff four years after the deadline lapsed.

At the time of the audit, the building was yet to be installed with a public address system, structured cabling, CCTV surveillance and a lift.

In Elgeyo Marakwet, Sh7 million spent on stalled canteen risks being lost. 

Turkana is yet to finish works on new assembly offices costing  Sh179 million.

“Consequently, the propriety of Sh21 million already spent on the project could not be confirmed,” the auditor said.

In Samburu, a contractor was paid Sh2.3 million to refurbish the county assembly but is yet to finish plumbing works, fix kitchen cabinets and supply materials for the county assembly gate.

Even as the focus is on county assemblies, governors are in a rush to put up residences as they are expected to forego house allowances from July as ordered by SRC.

(Edited by R.Wamochie)

WATCH: The latest videos from the Star