Sunday 4 February 2018

Auditor Ouko shines light on KAA 'shady dealings'

Kenya Airports Authority
Kenya Airports Authority Managing Director Jonny Andersen addresses guests at Isiolo airport during the launch of the Fly-Sax maiden flight on September 1, 2017. Auditor-General Edward Ouko has questioned financial dealings at the agency. PHOTO | PHOEBE OKALL | NATION MEDIA GROUP 

4.02.2018
By DAVID MWERE
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Auditor-General Edward Ouko has questioned financial dealings at the Kenya Airports Authority (KAA), revealing taxpayers could lose billions of shillings in shady transactions.
Among the issues that the auditor has questioned touch on KAA’s land, award of tenders and lack of seriousness on the part of the management to ensure that projects are finished on time.
The report was tabled in Parliament in December.
It will be one of the issues to be deliberated on by the Public Accounts Committee once MPs resume from recess next week.
JKIATERMINAL
Also questioned is the Sh65 billion new Greenfields terminal at the Jomo Kenyatta International Airport that was expected to handle 8.7 million passengers annually once completed.
However, the project, which had been awarded to M/S ACEG- CATIC JV, was cancelled by the Ministry of Transport in 2016 before construction works had even started.
Mr Ouko noted in the report tabled in the National Assembly that an expenditure of Sh78 million was incurred on the project on May 23, 2014, and described as contract variation.
“There was no further information being presented and it was not clear how a contract, which had not commenced, could have a variation,” Mr Ouko said.
PWC CONTRACT
He noted that PricewaterhouseCoopers was contracted for Sh29.8 million to provide technical advisory service for borrowing, but the contract would later be terminated in unclear circumstances after incurring Sh19.4 million, which he said amounts to nugatory expenditure.
According to the Auditor-General, a review of the project revealed that the contractor had been paid Sh4.3 billion while Sh129.9 million had been paid to the consultant as at June 30, 2016, but there was no evidence of work done.
The audit report also noted that the management has not explained how Sh228 million allocated for construction projects at Tseikuru airstrip was utilised between 2013 to 2016.
There are also issues on Sh399 million allocated for rehabilitation of a runway, apron and car park at Nanyuki airstrip.
The contract was awarded to Doch Company on September 3, 2014, and was to be completed within 12 months.
However, the auditor noted slow progress, missing progress reports, unapproved variation scope and lack of inspection report.

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