Parliament
has directed Tourism Fund (TF) management to explain in detail how the
cost of building the fund’s headquarters escalated by more than Sh600
million above the contract price.
The National
Assembly’s Public Investments Committee (PIC) has also ordered Mr Joseph
Cherutoi, TF’s chief executive officer, to provide a list of directors
of African Safari Club limited (under liquidation) who signed bouncing
cheques worth Sh9.9 million as payments to the fund.
On
Tuesday, PIC chairman Adan Keynan was forced to stop committee
proceedings after Mr Cherutoi company secretary Nancy Siboe failed to
provide satisfactory responses to the queries.
Tourism
Fund has until Monday to provide documentation relating to the
construction of the building and the directorship of Africa Safari Club
limited.
Mr Keynan rejected attempts by the TF
management to link the family of retired President Daniel arap Moi to
the directorship of Africa Safari Club limited without supporting
documentation.
Ms Siboe had named Murtanza Hasanali as
the then resident director of Africa Safari Club and a family associated
with retired President Daniel Toroitich arap Moi.
“Show
us evidence that any family of retired President were involved. Give us
names of members of former president family listed as directors because
what you are saying is misleading.
“I can’t allow you
to proceed to invoke the name of retired President who is peacefully
looking after his goats without substantiation.
“I
direct that you withdraw that statement and furnish us with proper
documentation,” he said, prompting Ms Siboe to withdraw the name of Mr
Moi family.
Contract extension by four years
The House committee interrogated the TF managers on its books of accounts for 2014/15.
Mr
Keynan demanded to know how the agency’s headquarters costs were
escalated from the initial contract sum of Sh811 million to Sh1.4
billion.
The building was supposed to have been completed in November 2011 but was only handed over in November 17, 2016.
Mr
Cherutoi was at pains to explain how the contract period was extended
to 2016 as he failed to produce a document supporting the extension of
the contract period by four years.
“The contractor
continued from 2012 to 2016 when he handed over the project. The Sh811
million was contract sum for civil works that excluded subcontracts.
“It
excluded the supply and installation of lifts, mechanical works refuse
among others. The total sum for construction of the headquarters is
Sh1.4 billion,” he told the committee.
Mr Cherutoi said
it took four months to start the project due to difficulty in
foundation excavation and the board was degazetted before giving an
extension for the contract.
“The construction continued
because there was no board to extend the contract. We agree there were
delays and I have not seen an extension of contract given to contractor.
The building is completed and ready for occupancy,” he told the MPs.
Completion certificate
Mr
Keynan said something must have happened between November 30, 2011 when
project was supposed to have been completed and November 17, 2016 when
the CEO was given the completion certificate.
“How did
the management, in absence of the board and expiry of the contract
period extend the contract? The original sum was Sh811 million. We want
to know the variation and the total cost of the project,” Mr Keynan
said.
Kisumu Town West MP Olago Aluoch described the
responses of the TF management as evasive and wordy and demanded to know
who gave the consent for the variation of the contract.
The
committee ordered Mr Cherutoi to provide the feasibility study of the
contract, the tendering process, variations costs, the completion
certificates and occupation certificates from the Ministry of Public
Works.
emutai@ke.nationmedia.com
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