Auditor-General Edward Ouko.[Photo/the-star.co.ke]The National Housing Corporation (NHC) has been summoned by Auditor-General Edward Ouko to release tied-up capital amounting to Sh251 million that has remained in dormant schemes for more than one year.As at June 2016, NHC has schemes in progress totaling Sh1.8 billion out of which Sh251,099,766 are dormant schemes Mr Ouko says.In the latest audit report for the corporation dated June 2, 2017, Mr Ouko says, “Although the dormant schemes continue to tie up the corporation’s funds, management has not explained what it is planning to do with the schemes to release the tied-up capital".Kanyakwar II in Kisumu and Makande Estate in Mombasa are some of the projects that Mr Ouko singles out.“Although this project had stalled since the beginning of the financial period, it has continued to attract costs amounting to Sh13,854,373. It was noted that out of these charges, Sh12,579,377 relates to interest on construction costs and Sh436,350 relates to supervisory costs,” Mr Ouko says.The NHC did not also explain to the audit team how a turnkey project, fully funded by the contractor, could attract interest on the construction of Sh12.6 million.

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