Monday, July 30, 2018

Judiciary on the spot over Sh6.6bn projects

Auditor-General Edward Ouko
Auditor-General Edward Ouko. He has raised questions over various construction projects of the Judiciary spread across the country, which have stalled despite payments having been made to contractors. PHOTO | FILE | NATION MEDIA GROUP 
By SAMWEL OWINO
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The Auditor-General has raised questions over various construction projects of the Judiciary spread across the country, which have stalled despite payments having been made to contractors.
In his latest report tabled in Parliament for the year ended June 30, 2017, Mr Edward Ouko has expressed concern that the public may not get value for money for the projects.
He points out that in some instances, payment made by the Judiciary to contractors exceeds the value of work done. In other circumstances, contractors were overpaid.
As at June 2017, the Judiciary had on its roll 55 construction projects valued at Sh6, 661,092,518.90 across the country.
Twenty eight were funded by the World Bank and 27 by the government.
NAKURU LAW COURTS
In the construction of Nakuru Law Courts, physical verification of the facilities indicate the work done by the time of the audit is 65 per cent while the contractor has already been paid Sh274, 402,054, representing 79 per cent of the total cost.
“It was not clear why payments exceeded the value of work done. Also, no explanation was provided on why the project stalled the contract period having expired on August 18, 2017,” reads the report. “Further delay in completion of the project is costly to the tax payers,” says Mr Ouko.
In the construction of Eldama Ravine Law Courts, the reports points out that the Judiciary overpaid the contractor by Sh4, 370,819, which should have been withheld as tax as required under the government procedures.
OVERPAYMENT
“The management has not explained the overpayment of Sh4, 370,819 or failure to produce the Authority to Incur Expenditure documents for audit review. In the circumstances, the propriety and value for money for the payments totalling Sh72, 493,943 made to the contractor cannot be confirmed,” reads the report.
For Hamisi Law Court, the project is 85 per cent complete, but the Judiciary has already paid 95 per cent of the total cost.
According to the report, Siaya Law Courts project has also stalled and the management has failed to provide justification for the delay.
Mr Ouko has warned that the cost of construction of Narok Law Courts may escalate after the management failed to approve sub-contracting works for mechanical and electrical works.

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