Auditor General Nancy Gathungu has raised a red flag over failure by the Nandi county government to complete major projects initiated by Governor Stephen Sang’s administration.
The works include legacy projects by Sang who is serving his second and last term as the county boss. Some of the projects have also run past completion dates that had been set for contractors.
Gathungu in her latest audit report for the county covering 2022/23 financial year, has cited the delayed construction of a new hospital with Mother and Baby Unit in Kapsabet town among the flagged projects.
The county government entered into a contract with a local contractor for the construction of the Mother and Baby Unit at Kapsabet County Referral Hospital for a contract sum of Sh409.9 million which was, signed on April 17, 2019.
The contract was for two years, two months and two weeks to coincide with the close of the financial year 2020-2021. During the year, Sh142.5 million was paid to the contractor.
However, physical inspection revealed that although the contractor was on site, the project had not been completed.
“In the circumstances, value for money obtained from the project could not be confirmed,” said Gathungu in the audit report.
Gathungu also questioned the continued delayed completion of governor’s office block in Kapsabet town.
Review of records provided show that the county government contracted a construction company to construct the governor’s office but the contract was terminated.
However, the details of the project concerning the contract sum, total payments made, the percentage of completion at that time and why the contract was terminated could not be determined, because the project file containing the signed contract and certificates of work done were not provided for audit.
The contractor was paid Sh10.9 million during the year under review. Further review of records revealed that after termination of the initial contract, the county government entered into the second contract on September 8, 2021 at a contract sum Sh45.8 million but physical inspection found the project incomplete.
The auditor also questioned the stalled completion of the Kipchoge Stadium project at a cost of about Sh95 million. The project has stalled and the county did not provide evidence that it had been taken over by the national government.
The county also delayed installation of milk processing equipment for Nandi Co-Operative Creameries Dairy Plant at Kabiyet where the county used more than Sh200 million including funds from a donor.
Auditor Gathungu also flagged failure of completion of the Nandi County Spatial Plan by two contracted firms at a cost of Sh85 million.
The auditor also queried the unsupported payments on use of goods and services by the county especially the use of more than Sh20 million on routine maintenance-vehicles and other transport equipment amounts of more than Sh5 million. The payments made were not supported by necessary documents.
Another Sh55 million was also irregularly spent on fuel, oil and lubricants.
Gathungu raised a red flag on payment of salaries outside Integrated Personnel and Payroll Database System. The county used Sh3.5 billion on salaries out of which more than Sh104 million was irregularly paid outside the IPPD system.
According to the audit report the county did not remit retirement benefits contributions of more than Sh252 million This was contrary to Section 53A(1) of the Retirement Benefits Act, 2017.