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Auditor General Nancy Gathungu has raised concerns over the viability of Thwake Multipurpose Water Development Programme despite it gobbling Sh32.8 billion as at June this year.

In her report, Gathungu raised concerns over the slow progress of the construction of the dam, the additional costs that the project is attracting, irregular payment made to the contractor as well unremitted Value Added Tax (VAT).

Other issues raised include incomplete and faulty works for community social responsibility projects, lack of ownership documents such as title deed, lack of national project steering committee meetings as well as lack of internal audit reports on the programme.

In the report, Gathungu regretted that physical inspection conducted in the month of October, 2024 revealed that the project had only minimal activities such as drilling and grouting going on despite the State department for water and sanitation pumping in billions of shillings.

Washed up waste

The report also raises concerns that certain sections of the dam had accumulated washed up waste that had stuck in the tunnels while the 30 houses constructed in the workers’ camp were found to be incomplete since toilets and bathrooms had not been done and electricity and water had not been connected.

The houses, the report says, had not been secured by a permanent perimeter but instead had a fence on only one side made of old iron sheets and the fence was loose.

The project started after the Kenya government entered into a contract with a company for the construction of a dam at a contract sum of Sh36,971,346,445.

Construction work started on March 27, 2018 and was expected to be completed on November 5, 2022, excluding defects liability period of one year.

However, the completion date was not achieved and therefore, the contractor was granted an extension to complete the contract by February 5, 2024 with the end of the defect liability period set for February 5, 2025. This was later extended to December 7, 2024 and a defect liability period to December 7, 2025.

Reads the report: “ln the circumstances, the programme may not be completed within the contract period and the advance payment may not be recovered.”

In the financial year ending June 2024, Gathungu regretted that despite the project gobbling Sh32.8 billion, the State Department of Water and Sanitation requested for additional funding of Sh9.3 billion, resulting in an increase in the contract price by 32 per cent.

Contract variations

This is contrary to Section 139 (4 e) of the Public Procurement and Asset Disposal Act, 2015 that states, any variation of a contract shall only be considered after 12 months from the date of signing the contract and shall only be considered if the cumulative value of all contract variations does not result in an increment of the total contract price by more than twenty-five per cent of the original contract price.

Reads the report: “Further, the letter requested for additional funding of Sh9,285,150,952 for Thwake Dam Construction. The Technical and Financial Appraisal of Thwake Dam resulted in an additional project’s total cost of Sh9,284,952,377 . Thus, resulting in an unexplained and an unreconciled variance of Sh198,575. ln the circumstances, Management was in breach of the law.”

The report also raises concerns that despite an engineering company preparing initial design drawings for the dam, it submitted them for tendering on August 22, 2016 when Geo-technical investigations at the site and hydrologic studies had not been completed which later led to a change in design drawings for the dam thus attracting the additional request for funding of Sh9.3 billion.

Reads the report: “ln addition, the change in design drawings for the Dam was done after contract signing and beginning of works. In the circumstances, Management was in breach of the law.”

The report says that payments amounting to Sh124 million that had been recommended for deduction by the contract implementation team was not deducted and thus paid to the contractor.