By PSCU
The Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing yesterday grilled the Kenya Airports Authority (KAA) over questionable financial dealings involving the controversial Greenfield Terminal project at the Jomo Kenyatta International Airport (JKIA).
The Committee examined audited accounts of KAA covering the financial years 2018/2019 to 2021/2022, raising serious concerns about irregular payments and financial accountability.
Acting KAA Managing Director Nicholas Bodo and his team appeared before the Committee to respond to issues flagged by the Auditor General.
Among the key concerns was an irregular payment of KSh75 million purportedly used for the groundbreaking ceremony of the Greenfield Terminal project in 2014.
According to the Committee, records show the amount was paid to contractors and labeled as a “contract variation,” despite there being no such provision in the original contract or bill of quantities.
In its defence, KAA management stated that the groundbreaking ceremony, which was officiated by the Head of State as part of the Vision 2030 flagship projects, required logistical preparations that were not initially budgeted for.
Management said the costs were covered using contingency funds within the contract, and the expenditure was approved by the tender committee, citing compliance with the Public Procurement and Disposal Act (PPADA) of 2005.
However, the Committee questioned the justification for categorizing ceremonial expenses as a project variation, terming it a possible misuse of public funds.
The MP for Kaloleni, Katana Paul Kahindi questioned the CEO on the identities of the committee members responsible for organizing the groundbreaking event.
“How can there be such a huge variation in the cost of a project that hasn’t even started? This committee must take the matter seriously and hold those responsible accountable. We cannot allow people to play around with taxpayers’ money. They must be dealt with accordingly to serve as an example to others,” he said.
Committee Chair David Pkosing acknowledged the seriousness of the issue and emphasized the need for accountability.
He inquired whether the members of the organizing committee were still working at Dork AA, but Bodo clarified that the matter dated back to 2013 and that most of the individuals involved had since left the organization.
Nyeri Town MP Duncan Mathenge cautioned that a similar issue could easily recur if the current committee does not treat the matter with the urgency it deserves.
Addressing some of the glaring concerns raised, Laikipia East MP Mwangi Kiunjuri remarked that many of the audit queries may have originated from the board, which has the mandate to act before management steps in.
The committee also flagged nugatory payments totalling over KSh4.5 billion made to contractors and consultants without evidence of actual work completed by June 30, 2019. Specifically, KSh4.31 billion was paid as advance to the main contractor, ACEG/CATIC JV, while KSh216 million was disbursed to the consulting firm Louis Berger JV Runji and Partners.
Additionally, audit records revealed that PricewaterhouseCoopers was paid KSh7.4 million after its contract for technical advisory services was terminated under unclear circumstances.
KAA maintained that the KSh4.31 billion was part of an advance payment clause in the contract, backed by a valid Advance Payment Guarantee, and that the amounts were later recovered or settled during a mediation process following termination of the contract.
The authority also clarified that a portion of the consultancy fees had been paid for design review and supervision services rendered on a time basis.
The Committee further raised alarm over the termination process itself, noting the lack of clear documentation showing agreement by the contractors and consultants on the decision to void the contract. This, MPs warned, could expose the government to potential legal suits.
In response, KAA provided annexed documentation indicating that the consultants had acknowledged termination of their contract and that the contractor’s claims were resolved through mediation.
The Greenfield Terminal project, which was envisioned to expand JKIA’s passenger handling capacity significantly, was terminated in 2016 under controversial circumstances. The fallout continues to cast a long shadow over the Authority’s procurement and contract management practices.
The Committee is expected to compile a report with recommendations on whether further investigations or legal actions should be taken.
Jerameel Kevins Owuor Odhiambo