- The county has already pumped Sh311.72 million the project as at June 30, 2019, an amount that could not be in the line.
- During the year under review, the county awarded seven contracts for the construction seven modern buildings under the Machakos New City project.
Image: Fredrick Omondi
The Sh1.3 billion Machakos New City project could be a burden to the taxpayers after revelations most of the components of the project have stalled and risk attracting extra costs.
This emerged as senators questioned Governor Alfred Mutua on Sh1.19 billion pending bills and installation of substandard synthetic running track at Machakos stadium.
Mutua appeared before the Senate County Public Accounts and Investment Committee to answer to 2018-19 audit queries raised by Auditor General Nancy Gathungu.
According to the report, the construction of key structures have stalled at the new city, with the county government instituting a legal process to terminate the contracts.
The county has already spent Sh311.72 million in the project as at June 30, 2019.
During the year under review, the county awarded seven contracts for the construction of seven modern buildings under the Machakos New City project.
The structures comprised three office buildings and four commercial ones with a recreation centre.
“The project valued at Sh1.30 billion in aggregate were to be completed on diverse dates between April and October 2019,” the report reads in part.
However, physical verification of the projects in November 2019, revealed that none of the buildings under the project has been completed in spite of the respective project periods having lapsed.
“Further, review of the project status report indicated that the project completion levels ranged from 10 and 60 per cent,” the auditor noted in the report.
The auditor concluded that the benefits envisaged in the Machakos New City project had not been realised.
“Further, the delays are likely to raise the costs of the projects due to inflationary or other causes,” Gathungu warned in her report.
In his response, Mutua said three of the seven projects have already been completed and launched by President Uhuru Kenyatta in his recent visit to the county.
The county chief told the panel that persistent delays by the National Treasury to release cash due to the county caused the delays to complete the projects, as the contractors abandoned the site as a result.
The nine-member committee is chaired by Migori Senator Ochillo Ayacko.
The governor denied that county funds risk sinking in the stalled project, saying that no contractor has been paid beyond what they delivered.
“Management has initiated contract termination and subsequent legal action necessary to ensure there are no loses of public funds,” Mutua said.
But the lawmakers raised concerns that public money could sink in the project as they pushed him to further explain why some projects were only 10 per cent complete.
“Some projects are 10 per cent complete. That means that no work has been done at all. Will you deliver this project within your term?” Isiolo Senator Fatuma Dullo said.
The government said he was optimistic of timely completion, adding that his administration was fast-tracking termination of the contracts and initiating a fresh one to undertake the projects.
The committee also put Mutua on the spot to explain why his administration paid a contractor Sh25 million or 66 per cent of the contract for the installation of all-weather synthetic running track that was substandard.
According to the report, the track wore out less than a year after it was installed.
“Consequently, unless the corrections are made, value for money will not be obtained on expenditure totalling Sh37.94 million incurred on the track,” reads the report.
Mutua said the county has not paid the contractor the arrears after it identified shoddy work and asked the contractor to repair and complete the job.
The contractor has since moved to court, seeking full payment.
The county chief was also at pains to explain to the senators why his administration has failed to secure 25 residential houses that it inherited from the Masaku county council.
The houses were funded through a loan to the defunct council. However, all the units were taken over by the national government.
He said his administration has been engaging the national government for an amicable handover of the houses to the devolved units.
He said his county will move to court in three months to force the handover.
-Edited by SKanyara