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Riddle of Sh37 billion spent on critical stalled State projects

Riddle of Sh37 billion spent on critical stalled State projects
Auditor General, Nancy Gathungu. PHOTO/Print

The Auditor General has unearthed projects in 24 State departments and ministries worth Sh37.92 billion that have stalled.

The report by Auditor General Nancy Gathungu for 2023/24 financial year shows the government has continued to incur huge expenditure on projects that had either stalled or had remained incomplete long after their completion dates.

The government has paid Sh7.8 billion for the projects, which have either stalled or are attracting penalties due to delays in payment of completion certificates of milestones achieved, while others have been revised to amounts higher than the original contract sum leading to cost escalations.

In addition, the report says, payments have been made to projects that appear to have completely stalled, casting doubt on value for money for such expenditure.

“There is no value for money on public funds spent on the stalled and delayed projects as no services are being provided by these projects. Further, the amount spent is a sunk cost as no development has been achieved from the stalled or incomplete projects. The costs incurred further distort expenditures incurred on development votes,” The report reads.

Among the departments leading with the stalled projects is the Parliamentary Joint Services that has stalled projects worth Sh4.3 billion, which as at June 30 last year had consumed Sh934.5 million.

The project relates to the completion of the Centre for Parliamentary Studies and Training (CPST).

Stalled projects

The Ministry of Defence has projects worth Sh21.9 billion relating to infrastructure modernisation and development projects, and as at June 30 last year had paid Sh3.2 billion for them. The State Department for Internal Security and National Administration has eight stalled development projects amounting to Sh1.15 billion and has spent Sh833.65 million on them.

The Department for Public Works has stalled projects worth Sh2 billion relating to delayed completion of county headquarters for Tharaka Nithi, Nyandarua, Isiolo and Tana River counties.

In the State Department for Higher Education and Research, the department has a stalled project on Science and Technology Parks at Dedan Kimathi University worth Sh1 billion, which have consumed Sh223.92 million.

The State Department for Technical Vocational Education and Training (TVET) has stalled projects worth 154.52 million, which have consumed Sh123.23 million.

Out of the Sh154.52 million, Sh48.47 million relates to stalled construction of Chepareria Technical Training Institute that has consumed 26.7 million, Sh46.99 million is for construction of proposed Ngeria Technical and Vocational

College that has cobbled up Sh26.7 million while Sh59 million relates to the building of Mt Elgon Technical and Vocational College that has cobbled up Sh57 million.

The report comes hardly a week after lawmakers placed an embargo on the start of new projects in institutions of higher learning following revelations that four top universities have stalled projects amounting to Sh6.2 billion.

Apart from Dedan Kimathi University, the top four universities include Egerton University, Moi University, University of Nairobi and Kenyatta University.

The MPs who sit in the Public Investments Committee (PIC), Governance and Education, chaired by Bumula MP Wamboka Wanami said it is unacceptable that institutions of higher learning were funding new projects yet the old projects had not been completed.

“We are putting an embargo on all new projects until all the old ones have been completed,” the lawmaker said.

With regards to the State Department for Medical Services, the report shows that the department has stalled projects worth Sh3 billion and has paid Sh1.5 billion. Out of the Sh3 billion, Sh2.95 billion relates to the completion of Paediatric Emergency Centre and Burns Management Centre that has cobbled up Sh1 billion, construction of Kisii Cancer Centre that has consumed Sh283 million and the building of 16 Equalisation Fund projects of undetermined value while Sh61.8 million relates to the installation of medical gases that has received Sh32.39 billion.

Gassed out

The State Department for Petroleum has stalled projects relating to Mwananchi gas project amounting to Sh1.28 billion, while the National Police Service (NPS) has stalled projects worth Sh105.36 million relating to the construction works at Laisamis Police Station.

The Transport Department has stalled projects worth Sh130.7 million relating to the construction of Transport Data Centre that has consumed Sh120.25 million while the Irrigation Department has stalled projects worth Sh485.88 million and has paid Sh37.39 million.

Out of the Sh130.7 million, Sh478.5 million relates to the construction of Anyiko – Ujwanga – Kathieno irrigation project in Siaya County, which has consumed Sh37.39 million while Sh7.37 million is for the drilling and equipping of borehole at Ganda Primary School in Kwale County.

The Labour and Skills Development unit has stalled projects worth Sh556.73 million and has far spent Sh339.23 million. Out of the total cost, Sh442. 7 million is for the construction of National Employment Promotion Centre that has consumed Sh244 million while Sh114 million is for the completion of Occupational Safety and Health (OSH) Institute Phase I that has cobbled up Sh95.29 million.

The Commission on Revenue Allocation (CRA) has stalled projects worth Sh117 million relating to the completion of office partitioning works at Prism Towers that has consumed Sh97.7 million.

The State Department for Water and Sanitation stalled projects relating to completion of boreholes projects amounts to Sh49.7 million while the Teachers Service Commission (TSC) stalled projects amounts to Sh122.56 million, which relates to delayed completion of Machakos and Kilifi county offices.

The Public Service Commission (PSC) has stalled projects worth Sh163 million that have consumed Sh94.09 million.

The projects relate to completion of the Integrated Management Information System (IMIS) awarded in 2015/2016 (Sh97 million) and has consumed Sh67.88 Million and completion of the construction of additional offices awarded in 2019/2020 (Sh66 million) that has so far cobbled Sh26.2 million.

The Livestock Development unit has stalled projects worth Sh21.8 million in respect to the construction of a training block at Narok Regional Pastoral Training Centre that has consumed Sh7.55 million, the State Department for Devolution stalled projects worth Sh890.8 million relating to the proposed Africities Convention Centre Project in Kisumu that has consumed Sh250 million while the State Department for Correctional Services has stalled projects worth Sh147 million yet they have so far cobbled up Sh60.17 million.

The projects in question includes the construction of the collapsed perimeter wall at Shimo La Tewa Maximum Prison amounting to Sh24.8 million and has so far consumed Sh22.36 million and the construction projects in various correctional facilities amounting to Sh123.1 million that has eaten up Sh37.8 million.

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