Auditor Ouko warns over move to halve Utalii varsity cost

Artistic impression of proposed multi-billion Ronald Ngala Utalii University College and Hotel in Vipingo, Kilifi county

Taxpayers may lose money if the Ministry of Tourism fails to reinstate a Sh8.9 billion Tourism University in Kilifi County to its original design.

This is after Auditor General Edward Ouko questioned the payment of consultants in the project full amount in spite of the project having been scaled down.

Mr Ouko, in his latest report, says consultants’ fee stood at Sh1.5 billion or about 17.1 percent of the original cost of Sh8,961,370,998 yet the project had been scaled down to Sh4,923,005,699.

“The project was revised on 25 August 2014 vide second addendum which scaled down the construction sum from the Sh8.9 billion to the Sh4.9 billion. However, no Cabinet approval has been tabled to confirm the revised scope of the project,” Ouko’s report of 2015/16 financial year states.

Last year, Parliament breathed a new lease of life on the ongoing construction after it cleared the project for full funding to save the public the cost.

National Assembly’s Public Investments Committee (PIC) now wants the Ronald Ngala Utalii University be completed according to the original cost of Sh8.9 billion.

In a report tabled in Parliament in June last year, the then Aden Keynan-led watchdog committee faulted the Government for varying the project cost from the original cost of Sh8.9 billion to Sh4.9 billion without Cabinet approval.

The construction of the college is being undertaken by the Tourism Fund, formerly the Catering and Tourism Development Levy Trustees (CTLDT). Already the Treasury has dispersed Sh2,359,397.211 of the Sh4,923,005,699.

The MPs wondered why the ministry resolved to downscale the project from the original plan that had been approved by the board of CTLDT, now Tourism Fund (TF) on December 13, 2010.

PIC says the project should be redesigned to accommodate 3,000 students, and add 500-bed, five-star beach hotel, a level five hospital and learning institutions for nursery, primary and secondary school for the community as per the original plan.

“The Cabinet Secretary should as a matter of urgency pursue post facto Cabinet approval for the downscaled project and should seek Cabinet approval for the implementation of the hotel component and report to the National Assembly the status of the recommendations, not later than six months after the adoption of this report,” the PIC report reads in part.

The MPs tasked TF Chief Executive Officer Joseph Cherutoi in liaison with Treasury to scout funds for phase two of the project and report back to Parliament within six months on the progress of the talks.

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