Auditor General Edward Ouko.[Photo/Nation]
Auditor-General Edward Ouko has shed light on financial dealings at the Kenya Airports Authority (KAA) shwoing that taxpayers could lose billions of shillings in illegitimate transactions.
The issues are based on KAA’s land, award of tenders and lack of seriousness when it comes to the management to make sure that the projects are finished on time.
The report was presented in Parliament in December.It is among the issues to be discussed on by the Public Accounts Committee once MPs are back from recess next week.
Another issue is the Sh65 billion new Greenfields terminal at the Jomo Kenyatta International Airport that was to handle 8.7 million passengers yearly once completed.
The project has instead been cancelled by the Ministry of Transport in 2016 before construction works had even started.
Mr Ouko mentioned in the report tabled in the National Assembly that a budget of Sh78 million was incurred on the project on May 23, 2014, and described as contract variation.
PWC CONTRACTHe stated that Price water house Coopers was contracted for Sh29.8 million to give technical advisory service for borrowing, but the contract was later on terminated after unclear circumstances after incurring Sh19.4 million, which he said amounts to nugatory expenditure.
Auditor-General stated that a review of the project shwoed that the contractor had been paid Sh4.3 billion while Sh129.9 million had been paid to the consultant as at June 30, 2016, but there was no work done.
The audit report also showed that the management has not accounted for Sh228 million allocated for construction projects at Tseikuru airstrip was used between 2013 to 2016.
There are also issues on Sh399 million set aside for rehabilitation of a runway, apron and car park at Nanyuki airstrip.The contract was awarded to Doch Company on September 3, 2014, and was to end in 12 months but the auditor showed concern over slow progress, missing progress reports, unapproved variation scope and lack of inspection report.