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MPs want answers over Sh3b project cost hike

By Moses Njagih | Published Wed, May 16th 2018 at 00:00, Updated May 15th 2018 at 21:54 GMT +3
Former KAA Managing Director Lucy Mbugua. [File, Standard]

MPs want former Kenya Airports Authority (KAA) bosses to explain how the cost of a project was revised upwards from Sh4.1 billion to Sh7.2 billion.

The National Assembly Public Investment Committee yesterday resolved to summon former acting Managing Director Lucy Mbugua and the tendering committee members to explain the “illegal variation” of Sh3.1 billion.

The committee said the variation in cost of construction of Terminal Four at the Jomo Kenyatta International Airport and the time it took for it to be completed was unacceptable.

A report by Auditor General Edward Ouko showed that the variation was made without the approval of the KAA board.

The committee, chaired by Mvita MP Abdulswamad Nassir, said the KAA management, then under Ms Mbugua, had allowed the variation first from Sh4,147,677,000 to Sh6,197,968,000 before finally ending up at Sh7,223,666,000 - a difference of Sh3,075,989,000.

To worsen the matter, auditors notified the committee that some works were incomplete, even after the contractor was given a clearance letter. “We...have a feeling (that the variation) was done after the project was delayed and possibly the contractor allowed to make claims for the lost time. Besides Ms Mbugua we also want to get details of the Chinese company and their local agents,” said Abdulswamad.

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