A damning report by the Auditor General reveals that part of the Government flagship project at the Jomo Kenyatta International Airport (JKIA) may have been subject to procurement irregularities amounting to over Sh3 billion.
The Kenya Airports Authority (KAA) is on the spot over the commission of the funds for construction of the Terminal Four building, and extension of the initial contract period without any evidence that both had been approved by the tender committee of the board.
According to the Auditor General, the Authority may have violated procurement procedures by committing taxpayers’ funds to the building project through opaque procedures, contrary to the Public Procurement Oversight Authority (PPPOA) regulations.
The report says the contract for the construction of terminal 4 building, parking garage, grade parking and other works was awarded in May 2010 to a contractor at Sh4,147,677,412 exclusive of VAT.
However, in unexplained circumstances, the cost was revised to Sh6,197,968,106 and later to Sh3,075,989,300.
Formally terminated
Additionally, although the project was to be completed by May 31, 2012, it had not been completed a year later, raising queries on whether proper procedures were followed in extending the contract period.
“There is no evidence to show the extension of contract period and variation of contract sum were approved by the Tender Committee of the authority, contrary to the Public Procurement and disposal Act 2005,” says the report.
The construction of the Terminal 4 building is part of the Jubilee Government efforts to expand the capacity of the airport, which has long been touted as a regional hub. Although the urgency of the project is not in doubt, it has been behind schedule with test runs having begun only this month.
The Auditor General s’ report covers only the period up to June last year, and has not taken into account the additional delay since the last audit.
The new terminal covers an area spanning 178,000 square meters and will have 50 international and 10 domestic check-in points, 32 contact and 8 remote gates and an associated apron with 45 stands and linking taxiways. The audit however raises questions on only some aspects of the construction works.
The report which was tabled before the National Assembly on Thursday also points to a number of other acts of omission and commission by KAA, including some touching on its books of accounts. For example, KAA risks paying damages for some works not completed since 2009, although the projects have been formally terminated.
“The Embakasi Estate fencing works have never started and the contract has never been terminated and no reasons were given for this anomaly. As result, the authority risks paying payment for damages should the contractors proceed to court.
The Auditor General noted that KAA has never provided any documentation of liabilities that could arise from the demolition of property belonging to people who had allegedly occupied airport land.
“As at the time of computing the audit, no valuation report had been availed for audit verification and the authority had not made any provision for any contingent liabilities likely to arise from these disputes,” the auditor general noted.
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