Report: Othaya hospital contractor received pay for unfinished work

NAIROBI: The Auditor General has captured in his report the Ministry of Health’s financial irregularities in the counties.

The audit review for the year 2013-2014 showed that the money allocated for the upgrading of the Othaya District Hospital was revised from Sh436.3 million to Sh501.7 million.

The report further indicates that despite the fee revision, work at the hospital was not complete, and the time frame given was also revised from 85 weeks to 123 weeks.   

The contractor for the upgrading of the Nyeri County-based hospital facilities, M/S Jaswant Singh and Brothers, might have left the site before completing work.

“The initial completion period was 85 weeks but was extended to 123 weeks with the new completion date being October 25, 2012,” the report stated.

But as at February 24, 2014, records indicated that Sh501,574,915 had been paid. 

The review further showed that works on floor tilling and grouting, wall tilling, window glasing, window stays and fasteners, ceiling, fixing of door leaves, locks, and glasing, internal and external painting, ramp and staircase finishes, worktop and counter finishes, road drainage and medical gas installation were still outstanding.

OVERPAYMENT

“At this time (February 24, 2014), 192 weeks had lapsed over the contract period of 123 weeks. No proper justifiable reason has been provided for the overpayment of Sh24,916,294 or why full payment was made to the contractor before the completion of the project,” the report read in part.

In his remarks, Auditor General Edward Ouko noted that he could not be certain whether the Government obtained value for money for the expenditure of the amount paid to the contractor.

An inspection of the project on November 2014 revealed that the contractor and sub-contractors were not on site.

“Although it is indicated that the project had been terminated on a mutual agreement, no documentary evidence was made available for audit verification,” the auditor said.

At the same time, the report revealed that ministries and State agencies failed to account for Sh66.7 billion allocated to them during the 2013-2014 financial year.

The report also showed that the Government and its agencies incurred excess expenditures totaling Sh24.5 billion without Parliamentary approval compared to Sh38.4 billion recorded in the previous year.

The excess expenditures were incurred under eight ministries, departments, agencies and funds.

The report says the Health ministry has the highest amount of unsupported expenditure of Sh22.5 billion.