Stalled projects worth millions, irregular procurement dog Lamu

Auditor General Nancy Gathungu has exposed massive irregular procurement and stalled projects worth billions of shillings in Lamu county.

In a report tabled in the senate, Gathungu has also exposed several uncounted for expenditures in what could put Governor Issa Timamy's administration on a tight spot.

The report covering 2022-23 financial year reveals that 75 projects worth Sh421.97 million which had been budgeted for during the year failed to take-off.

“Delay in project implementation may be an indication of ineffectiveness in management of public resources causing delay in service provision to the public,” the report states.

Among the stalled projects is the Sh45 million governor’s residence that was started on March 31, 2021.

However, physical verification on the project carried out on February 16, 2023, showed that the contractor had completed the foundation and substructure works worth Sh10.88 million.

However, the county has only paid Sh5.58 million.

Also stalled is the construction of Lamu county headquarters. The contract was awarded in June 2019 for Sh126.82 million.

The national government contributed 70 per cent of the cost with the country contributing 30 per cent.

So far, the national government has paid Sh11.09 million while the county has paid Sh31.98 million.

“In the circumstances, the value for Sh43.06 million spent on the project could not be confirmed and the management was in breach of the law,” the report states.

The auditor also flagged stalled construction of a 3.4km pipeline extension and two water points at Uziwa water project at a cost of Sh3.99 million.

The county paid the amount in full, but verification showed that the water points were not yet operational.

In addition, the management engaged a contractor to drill and equip three boreholes at a cost of Sh3.78 million.

However, an inspection of the projects revealed that one borehole was not operational.

“In the circumstances, value for money paid for this project could not be confirmed and management was in breach of the law,” Gathungu said.

Gathungu further revealed several irregular procurement and payments in what triggers fears of massive loss of public money.

The auditor flagged irregular procurement of pharmaceuticals and non-pharmaceutical items amounting to Sh64.45 million.

Reports shows that local purchase orders used were expired contrary to the public finance management law.

In addition, the county paid two suppliers Sh50.81 million for lab reagents, pharmaceutical and non-pharmaceutical items.

However, it emerged that the suppliers were identified through direct procurement despite the county having 29 registered suppliers under the category of medical drugs and equipment.

Further, Gathungu poked holes in the award of tender for extension of Hongwe market.

The project was awarded at a contract sum of Sh5.63 million. Some Sh3.89 million has already been paid.

However, the contractor submitted the performance bond on June 2, 2023 after the contract had been signed on May 30, 2023, contrary to the public procurement law.

The auditor also flagged irregular payment of Sh26.13 million for the construction of Mpeketoni open air market, Sh3 million paid to Council of Governors and Sh2 million paid to the Frontier Counties Development Council Limited.

Lamu has also been put on the spot for spending up to 48 per cent of it revenues on staff emolument, against a limit of 35 per cent.