Kenha blew billions of shillings in exaggerated cost of consultancy services for the management of weigh bridges across the country.
Documents show the Kenya National Highways Authority spent Sh1.4 billion in excess of the budgeted amounts. The money was paid to verification firm SGS Kenya Limited for operating the facilities.
The agency paid Sh1.17 billion in excess for management of weigh bridges in Webuye, Malaba and Eldoret cluster; Gilgil and Mai Mahiu; Mariakani and Mtwapa; Athi River, Thika Road and Isinya; as well as Busia, Isebania and Kisumu cluster.
The Mvita MP Abdulswamad Nassir-led Public Investments Committee is probing the circumstances under which the money was adjusted upwards.
This followed a review of the roads agency’s audited accounts for 2014-15 to 2016-17.
Kenha spent Sh255 million in excess for works in the Webuye section, an amount which deviated from the engineer’s estimate of Sh263 million.
In Gilgil, the entity incurred Sh221 million more despite the engineer costing the works at Sh287 million and an extra Sh171 million for works on the Mariakani station earlier put at Sh361 million.
On the Athi River weigh bridge, the auditors queried the expenditure of an extra Sh310 million while the project was estimated to cost Sh340 million.
A similar scenario played out in Busia where Sh218 million was spent above the engineers' Sh233 million estimate, bringing the total cost to Sh452 million.
The five contracts were awarded to verification firm SGS Kenya Ltd, which was the only evaluated bidder out of the four companies that applied for the tender.
“Examination of the documents relating to the consultancy contracts revealed that the tender sums may not have been competitive and consequently exceeded the estimates by Sh1.17 billion,” an audit report reads.
Apart from the variances in the contract sum as compared with the engineers’ estimates, the roads agency’s payment vouchers further showed that SGS was paid Sh264 million in excess of the contract amounts.
The contractor got Sh20 million more for Webuye, Gilgil (Sh31 million), Sh23 million in Mariakani, Sh62 million in Athi River, Sh34 million in Thika Road, Sh44 million in Busia, and Sh29 million in Kisumu, amounts reported to be for maintenance and operations as well as engineer’s superintendence.
“In the foregoing, the authority breached the law as it is not possible to confirm whether Kenha obtained value for money in the contract,” Auditor General Edward Ouko says in his report.
The latest audit for 2016-17 reveals that the current excess figure stands at Sh435 million.
MPs raised concern over the contracts but ruled that the matter will be looked into during the review of the audited accounts for 2016-17 where the variations have escalated.
Kenha defended itself against the accusations saying the estimate provided by the engineer was based on the projected cost of management of the weighbridges, all of which have been privatised.
The agency said the costing was based on the estimated personnel expenditure to be incurred by SGS Kenya Ltd, bringing the cost to Sh1.4 billion.
Director general Peter Mundinia further indicated that the contract had key items on weigh bridge station improvements which were capital in nature.
He cited improvement of civil works, electricity installation and automation. The deliverables were fencing of weighbridge, permanent warning signs, electrification for night vision and installation of a weights monitoring system.
“From the foregoing, it will be noted that the capital expenditure summed to the engineer’s estimate which is the management fees, favourably compares to the contractors’ tendered sums,” Mundinia said in his response to the query.
Kenha backed the engagement of SGS saying they have helped improve axle load compliance from 65 per cent in 2013 to 90 per cent as reported in 2017-18.
“The improvement has protected the road network infrastructure from damages associated with overloading,” the director general said.
The agency insists that Kenyans got value for money in the venture as the good road network has resulted in low vehicle maintenance cost and reduced travel times.
Edited by R.Wamochie
