Auditor-General questions exaggerated costs of stadia renovations and delays in completion
Auditor-General Nancy Gathungu has raised questions over-exaggerated costs in millions of shillings and delays in the completion of various stadiums that are currently under renovation or construction.
In a report for the financial year ending June 30, 2021, Gathungu regretted that there was no value for money for the said projects as most of them had stalled while others were incurring huge expenses.
The said stadia include Nyayo National Stadium, Kasarani Stadium and Kenyatta University Sports field, Kipchoge Keino Stadium in Eldoret, Kamariny Stadium, Wote Stadium, Karatu Ndarugu Stadium, Kinoru Stadium, Kirubia Stadium, Ruringu Stadium and Marsabit Stadium. At Nyayo National Stadium, Gathungu regretted that an audit carried out in February last year revealed that the contractor was still on site despite the expiry of the period by over 34 months while the works were ongoing but on a slow pace.
Works in the stadium were to commence on August 24 2017 with a completion date of January 24, 2018 after the management on August 18 2017 entered into two contracts in respect to civil and builder works in preparations for CHAN Football tournaments at a contract sum of Sh 206.7million for civil works and Sh 325.8million for builders works.
“Further no explanation has been given as to why the building and civil works at Nyayo National Stadium have not been completed and the delays are likely to lead to cost escalation. Consequently, value for money has not been realized on this project and delay in the completion of this project may result in cost overruns,” she noted.
On Kasarani stadium and Kenya University Sports Field, Gathungu regretted that the payment for the contract awarded for the supply and installation of three running tracks at the stadium and KU sports field at a cots of Sh 344 million on March 1 2017 with a completion period of 18 weeks was not secured with a bank guarantee and exceeded the 20 percent allowable limit contrary to section 147 (1) of the public Procurement and Asset Disposal.
In addition, she noted that records availed showed that the contractor was paid a total of Sh 355.3million in execs of the contract sum while a retention fee of 5 percent was not deducted from the contractors payment in accordance with clause 26 of the contract to cover for defects liability period.
“A review of the matter in the year under review and field inspection done in March 2021 revealed that the works were still incomplete while the contractor had abandoned the site. Consequently, value for money has not been realized on this project and the delay in the completion of this project may result in cost overruns,” she noted.
On the Kipchoge Keino stadium in Eldoret, which the contractor was awarded a contract sum of Sh 304.2million for various renovations, Gathungu noted that it was impossible for her to confirm if the award of the contract was competitive and that the contractor was executing works with the terms and contract period.
This, she noted, is because documents to prove that contractor had started works at the stadium on September 14 2020 was not availed while the approved extensions of the contract accompanied by a revised and approved program were also not availed to prove that the said extension happened.
With regards to Kamariny stadium whose contract sum amounted to Sh 287.8million, Gathungu said value for money has not been realized on the project due to delays in its completion.
“ Audit inspection of the project done on 11 February 2021 reveled that the contractor was not on site and works stalled at the preliminary level due to some dispute whose documentation was not made available for audit review. No reasons have been given for the failure to settle or terminate the contract,” she noted.
With respect to the Wote stadium, Karati Ndarugu stadium in Gatundu, Kirubia stadium in Tharaka nithi County, Ruringu Stadium and Marsabit stadium whose contract cost amounts to Sh 299.3million, Sh 259.6million, Sh 274.3million, Sh 288 million and Sh 294.2million respectively, she said that value for money had nor been realized on the project due to the delays in the completion of the project which will in turn result in cost overruns.