Taxpayers could lose billions in dams scandal

By JAMES ANYANZWA

KENYA: The National Water Conservation and Pipeline Corporation (NWCPC) is on the spot on what appears to be yet another mega scandal in the development of dams.

The latest, which is under scrutiny by the Public Investment Committee (PIC), involves the construction and development of dams in the Rift Valley, Eastern and North Eastern parts of the country.

The committee headed by Wajir West MP Adan Keynan has raised concerns over what appears to be controversial procurement of contractors for the development of dams in five districts—Machakos, Kajiado, Marsabit, Kitui and Eldama Ravine.

In the limelight is Maruba Dam whose implementation is said to have been rushed in the pretext that the Sh380 million project was to be commissioned by the Head of State.

The corporation’s top management were yesterday at pains to explain the circumstances under which the contractor for the project was procured through a restricted tendering process with members of the committee reading a sinister motive.

The committee noted that the project might have been rushed to award the contract to ‘specific’ contractors.

However, the Managing Director Petronilla Agut said the tender for the project was issued to the prequalified large dam contractors who had not been awarded any of the large dam contracts at the time.

Ms Agut said the contractors had been prequalified in the 2008/2009 financial year through an open tender system. Confirming that the project was rushed, Agut told the committee that the corporation did not have the capacity to complete the project at the specified time.

Restricted tendering

“We would not have finished the works because we had our own institutional challenges,” she said.

“It should be noted that the construction of large dams part of which involves spillways is complex and specialised.”

She said while the project cost was estimated at Sh380 million, the corporation carried out works valued at Sh301.6 million. She noted that the construction of a spillway and a water treatment plant at cost of Sh78.39 million and Sh9 million respectively were outsourced and awarded to other parties on a restricted tender basis.

The project, which commenced in September 2008 was scheduled for completion by February 2010.

“This hoax that the Head of State was coming to commission this project, may be, was a way to justify the restricted tendering,” said Njogu Barua, MP Gichugu Constituency.

“When you say the tender was done fairly. How was it fair when there was no competition,” queried Aldai MP Cornely Serem. Mandera North MP Adan Mohamed Noor wanted to know who invited the Head of State to commission an incomplete project.

“Who invited the Head of State if these projects were not ready,” he said. The committee ordered the corporation’s management to produce copies of its correspondence with the Ministry of Water and Irrigation regarding the commissioning of Maruba Dam by the Head of State.

“I want the managing director to avail to this committee the correspondences between the corporation and the parent ministry before and after the commissioning of the dam,” said Korei Lemein, MP Narok South.

Special audit report

Igembe South MP Mithika Linturi said irregular procurement of contractors for the development of dams is a serious issue, which had prompted the PIC of the last Parliament to commission a special audit of these projects.

“The issue of dams in this corporation has also been with another committee in the last Parliament.  We had requested a special audit report on dams because they involve a lot of money. I would suggest we look at the special audit report on priority basis. In that report there were many issues to do with procurement,” said Linturi. 

“We want responses for issues raised in the special audit report in good time so that we can have time to look at them.”