A wave of uncertainty has hit the ongoing construction of Sh82 billion Thwake Dam in Makueni County.
A spot check by the Star established that there were reduced works going on at the site with low numbers of workforce engaged in the operations.
Multiple sources told the Star the project’s main contractor China Gezhouba Group Company Limited (CGGC) downsized the workforce leaving several construction equipment lying idle.
The workers who spoke in confidence over fear of victimization said they had been told by the employer to stay at home until a communication is made for them to return to work.
The verbal directive according to the workers was issued on September 7 by the company’s management after they demanded their delayed August pay. They received their August salaries on September 11.
“We were demanding for our August salaries when we were told to stay at home until the money was wired into our accounts and a communication made for us to resume duties,” one of the employees said.
They said the management sited a legal battle between CGGC and a sub-contractor, a situation the firm’s management claimed had interfered with their finances hence the delays in settling workers’ salaries.
CGGC general manager, Kenya Branch Tang Yazhou on September 1 through a statement said during the project, the firm had worked alongside more than 10 subcontractors, fostering a spirit of cooperation and synergy.
“Throughout this collaboration, CGGC has maintained an exemplary track record devoid of any legal disputes,” Yazhou stated in a letter dated September 1.
The employees who included mechanics, machine operators and drivers said CGGC normally pays their salaries by 5th of each month terming the delays unusual.
“It is noy only our salaries that delayed. There are complaints of inability to purchase adequate fuel (diesel) for the machines’ operations,” a machine operator said.
Thwake Multipurpose Water Development Program senior communication specialist Geoffrey Olali confirmed that the operations had been affected by a legal battle between one of the project’s sub-contractor, JTG Enterprises Ltd and CGGC.
Thwake multipurpose water development is a priority project in Kenya's Vision 2030 strategy. It is the largest water conservation and hydropower project ever to be undertaken by the government.
Olali, however, noted that the issues were being resolved for operations on the dam’s construction to return to normalcy adding that the project had not stalled.
“What happened is that, CGGC had difficulties in accessing money from its account after a high court ruled in the sub contractor’s favor. That is why they were not able to pay workers in time,” Olali told the Star by phone.
He said the main contractor bank account’s issue was resolved by September 10th evening.
According to Olali operations will be 100 per cent normalized by end of this week.
“The contractor is in the process of returning all the equipment to operations. They will be able to return to work by the end of this week since adequate fuel has been purchased already,” Olali said.
He said it was difficult for the operations to continue normally with the bank challenges.
“The contractor has been allowed to access the bank account and everything is back on track,” Olali said.
He said the project’s Human Resources manager was equally working hard to ensure that all the workers who had been told to stay at home were recalled to work.
The High Court on August 22, 2023, ordered the Chinese firm to pay the local company Sh683 million for breach of contract over the dam’s construction.
Officials from the auctioneer firm served CGGC representatives with a copy of warrant of attachment at Thwake Dam Construction site in Makueni County on August 24, 2023.
This follows a successful legal suit by a local firm that had been subcontracted by CGGC in the project over a contract breach.
The legal battle which had been at Milimani High Court for the last two and a half years ended in the subcontractor’s favor.
Justice Alfred Mabeya directed CGGC to pay the subcontractor the amount and interest after finding that it didn’t pay actual excavated works as was on the site.
The subcontractor was according to court documents seen by the Star hired to do excavation, protection and support of the main spillway.
The job terms were fixed while unit prices and payments were dependent on the nature of excavated materials.
Jamdee Enterprises Auctioneers obtained orders from the same court to attach the defendant, CGGC’s property after it failed to pay the plaintiff as earlier ordered by the court.
The auctioneers have since proclaimed as per the order by the court.
Justice Mabeya said the Chinese firm admitted that the rock classification as contained in the original bill of quantities on which the subcontract was based didn’t match the actual site position.
The dam once completed will provide drinking water, agricultural irrigation water, hydropower, and other uses for human beings. The water storage of Thwake is around 681 cubic meters.
The first phase of the project will cost the government Sh42 billion, while both the second and third phases will cost Sh40 billion.
The project was financed by a loan from the African Development Bank and the Kenyan government through budgetary allocation to the Water Ministry.