•Lawmakers concluded the claims arise from lapses in project management at the Kenya Airports Authority. It recommended the EACC and DCI investigate some projects.
•Instances of contracts being awarded to new contractors without re-tendering were also cited.
The Kenya Airports Authority is on the spot for causing taxpayers the possible loss of more than Sh1.3 billion in poorly managed projects.
MPs have flagged what they called the authority’s tendency to initiate projects, only to terminate them along the way.
“This brings to the fore the incapacity within the authority in project planning and implementation,” the Public Investments Committee said in its report.
“Most of the projects initiated by the KAA were terminated due to non-performance by contractors but poor project planning and implementation pointing to poor and ineffective management.”
The committee chaired by Mvita MP Abdulswamad Nassir said the infractions are deliberate and “a trend that should be arrested”.
In its review of audit reports from the financial year ending 2015 to 2018, the PIC has flagged the anomalies in a number of KAA projects, some initiated seven years ago.
There are issues with works at Nanyuki Airstrip, a components of works at Kisumu Airport, Isiolo airport, security post and washrooms at Wilson Airport, Tseikuru airstrip in Mwingi North and improvement works at JKIA.
PIC has invited the EACC and DCI to probe a number of projects by the authority in which it is believed money was lost.
“KAA should always undertake proper feasibility studies before engaging in contracts to avoid termination and loss,” the lawmakers said.
On the Nanyuki project, a contractor is waiting for an arbitrator – yet to be appointed - to resolve a disputed claim of Sh950 million against KAA.
Doch Company was awarded the tender at Sh398 million but the contract was terminated over non-performance on its part.
PIC has accused the concerned committee of not acting in time “yet it was clear the project was not progressing as scheduled”.
KAA had proposed to settle the claim at Sh955 million, over and above the Sh142 million that was already paid to the contractor.
The contract has been awarded to another contractor at Sh329 million.
“This raises concerns about capacity challenges of KAA to plan projects diligently. The DCI and EACC should investigate the procurement with intent to prosecute those involved,” the PIC report reads.
In Kisumu, the authority has been flagged for removing a critical component of works at the airport to accommodate a variation in the contract value.
The contractor assigned to rehabilitate the lakeside airport omitted heavy-duty manholes valued at Sh17 million, said to be too risky for safe operations.
“All those involved in revision of the scope of work thereby compromising the quality of work should be investigated by the DCI and the EACC,” the committee said.
At JKIA, a contractor – Machiri Ltd – is tussling with KAA over a Sh340 million claim for demolition of the arrivals hall, baggage area and office block.
The contract was awarded in July 2014 at Sh326 million for six months but there were three extensions of time, pushing the completion date to August 2015.
Some expenditure of Sh29 million - for provision of temporary offices and vehicles - are in doubt as their existence was not verified.
KAA also spent Sh3 million on an incomplete security office and washrooms at Wilson Airport, payments the authority said were for completed components of the work.
The project was terminated two weeks to its completion date but there was no evidence the contractor accepted the early termination without damages to KAA.
“By terminating the contact two weeks to the completion time, it indicated poor project management by the KAA. If termination was necessary, it should have been done earlier,” the report reads.
For Tseikuru airstrip in Mwingi North, KAA is yet to explain how funds totalling Sh227 million were utilised despite concerns the project has been delayed inordinately.
Out of this amount, Sh50 million was paid to the National Youth Service, leaving a balance of Sh177 million in the KAA account.
The project was conceptualised in 2006 and was to be implemented for Sh190 million even as MPs cited contradicting explanations for its delay.
“KAA could not explain the reason of the annual allocations to the project despite the fact that it had stalled,” the MPs’ report said.
“The EACC should investigate the matter on the exact status of the project and whether there were irregularities in its implementation,” Nassir’s team recommended.
(Edited by V. Graham)