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How universities sunk billions in white elephants

How universities sunk billions in white elephants
Auditor General Nancy Gathungu. PHOTO/File

Public universities, colleges and technical institutions are on the spot over tens of infrastructure projects which have either stalled, been abandoned, or delayed after gobbling up billions of shillings.

The projects include lecture halls, hostels, libraries, laboratories and dining halls.

In some cases, contractors have left the project site after being paid for incomplete works or poorly done projects.

Some projects stalled because they were not allocated adequate funds.

The revelations are contained in the Auditor General’s report for the financial year ended June 2020.

At Meru University for Science and Technology, the construction of the engineering tuition block has been delayed despite the contract being split into three phases before commencement and varied from the original contract sum of Sh475 million to Sh591 million representing a variance of Sh116 million or 24.5 per cent.

Auditor General Nancy Gathungu has also questioned the Irregular Advance Payment on Engineering Tuition Block estimated to be Sh15 million paid to a contractor without any bank guarantee.

“In the circumstances, the recoverability and legality of the advance payments of Sh15 million could not be confirmed,” the audit states.

Murang’a University

At Murang’a University of Technology, the construction of a hostel block Phase 1 Wing 2, a science complex, road works, perimeter wall and ERP software have stalled.

A review of records revealed that although the projects were initiated in the financial year 2016/17 at a cost Sh440 million with an expected completion date of April 2018, the projects had taken too long to complete.

“The University attributes the delay to slow disbursement of funding by the national government, while the construction of perimeter fence had stalled due to a court case on encroachment of the university land by a private developer,” the audit reads.

The auditor has also queried the construction of  workshops, classrooms and offices at Laikipia West Technical Training Institute which stalled after management canceled the contract for its breach.

The contract was awarded at a sum of Sh55.4 million in May 2016 for a period of 52 weeks and a completion date of June 19, 2017. According to the audit, a review of documents  revealed the contract period was extended by the Board of Governors by 22 weeks from June 19, 2017 to December 19, 2017.

Machakos University

However, as of September 23, 2020, some 173 weeks since the project commenced, the project had stalled and was reported to have been terminated due to a fundamental breach by the contractor.

“Further, the Institute had not sought compensation in the form of liquidated damages in line with Clause 27.1 of the contract, which provides for liquidated damages in case of delay in completion of the project,” the audit reads.

It adds: “In the circumstances, the completion of the project is doubtful and value for money for the project expenditure of Sh27 million could not be confirmed.”

At Machakos University, tuition and office block is incomplete even after millions of shillings were spent on the project.

According to the audit report, the contract for the construction was awarded on  July 6, 2017 at a sum of Sh986.7 million over a three-year period.

However, at the time of this audit in October 2020, the project was at a 54 per cent completion level,  three months after the lapse of the contract period.

A review of the approved budget for the year under review revealed that only Sh70 million had been allocated to the project which is inadequate to cover the outstanding contract sum of Sh639.6 million.

“In the circumstances, the project implementation is behind schedule and the likelihood of cost escalation may hinder the university to obtain value for money from the investment,” it says.

At Kirinyaga University, a lecture theatre stalled despite the contract being revised five times.

The tender for the construction of a lecture theatre was awarded at a contract price of Sh149 million and a period of 52 weeks commencing on May 29, 2017, with an expected completion date of May 28, 2018.

However, the contract price was later revised by Sh29.7 million to Sh179 million, and the expected completion period was revised five times

For the Tuition Complex, which has also stalled, the auditor notes the tender for the construction of a Tuition Complex was awarded at a contract sum of Sh310 million for a contract period of 78 weeks commencing March 14, 2017 with an expected completion date of September 28, 2019.

The expected completion period was revised four times

The total payments as of June 30, 2020 were Sh216 million which is 70 per cent of the contract price.

At Ekerubo Gietai Technical Training Institute, the construction of the library block has been delayed despite being allocated Sh26 million. “However, the contract completion period has been revised several times but the project still remains incomplete to date,” the audit reads.

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