Shame as Sh388m projects fail over tender anomalies

The government was forced to refund Sh388.69 million to the World Bank after anomalies and irregularities were detected in the award of various tenders by the State department for Devolution.

 In a report for the 2020/21 Financial Year, Auditor General Nancy Gathungu regretted that despite the anomalies, top ministry officials did not explain how it happened and the actions they have taken to ensure culprits face actions.

 Gathungu said the money was meant to finance Western Kenya community driven development and flood mitigation projects, largely in Busia and other areas prone to flooding in the region.

 “Management has not explained how the ineligibility occurred and what action it has taken to ensure the culprits face consequences or how it intends to recover the amounts,” the report.

 Gathungu in the report, noted that an in-depth review by the World Bank report submitted to the government in March 2017, revealed that 61 contracts awarded in relation to the projects were marred with fraud through submission of forged documents such as bid securities, performance bonds, national construction authority registration documents, tax compliance as well as falsified prior working experience.

 Report further shows that some other 19 contracts had significant red flags of fraud and corruption while 54 contracts “exhibited red flags of fraud but with significant gaps in the available evidence.”

 Refund is a blow to the government, which has in the recent past been struggling to address the perennial flooding challenge in Budalangi that has led to loss of lives, property and displacement of residents during the long rains seasons in the region.  Project entailed empowering the local communities to engage in sustainable and wealth creating livelihood activities, lower the high poverty levels and reduce locals’ vulnerability to the flooding hazards.

 Investment grants

Besides the fraud related queries, Gathungu also regretted that out of Sh4.6 billion that was set aside for transfer to 38 counties as level two investment grants under the Kenya Devolution Support Programme, only five counties received Sh689.43 million.

 Gathungu at the same time also fingered the State department for paying Sh75.6 million as demurrage charges.

 She stated that the money was paid through the government clearing agency arising from the long delay in returning the empty containers that had been used to deliver relief food supplies from the Government of China and which could have been avoided had proper planning measures been put in place.

 “Consequently, the value for money for the expenditure for demurrage charges could not be confirmed,” report adds.