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Wako throws lifeline to sued road contractor

By | October 15th 2009 at 00:00:00 GMT +0300

by Maseme Machuka

Attorney-General Amos Wako has asked Roads Minister Franklin Bett to engage Kirinyaga Construction Company over delayed projects.

Mr Wako has written to the minister asking him and the construction company put in a spot for delaying roads project to seek an alternative dispute resolution.

Ministry of Roads PS Michael Kamau had filed a case against the company over delayed projects.

In the letter seen by The Standard, the AG asked the minister to reach an amicable settlement according to recommendations of the Public Accounts Committee (PAC) report.

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PAC report of 2004/2005 recommended that in order to hasten project completion, the costs, losses and damages incurred by a contractor due to breach of contract by Government to be speedily agreed upon and be concluded amicably.

"The Government should also reimburse all money deducted from the contractor contrary to provisions of the contract agreement without referring to tax matters. The contractor should be allowed to clear his tax normally," reads part of the report.

Contract breached

And Wako agreed with the report, saying the Government breached the contract, leading to the delay in the completion of the road.

PAC also observed the breach of contract was not in the spirit of promoting indigenous contractors as explained by the PS.

"The breach of contract led to cash flow problems and consequential lengthy delays in the project, denying the public the use of the roads," observed PAC.

PAC said the PS should refund all liquidated damages of delay deducted from the contract and allow the contractor to complete the project.

The Murang’a-Sagana-Karatina-Maua roads had stalled, forcing PAC to tour the area last year. It found out 80 per cent of the work had been done.


Public Accounts Committee Breach of contract
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