Labour ministry inflated cost of office by Sh20m – report
3 weeks ago, 23:42
Auditor General Edward Ouko has queried the stalled construction of a Sh480 million research complex in Nairobi by the Ministry of Labour.
Construction of the research institute office complex in Industrial Area has stalled since 2009 even after the government pumped Sh324 million into the project.
The complex was to help the ministry keep abreast with Labour industry issues. Ouko has questioned the ministry’s decision to increase the cost of the project by Sh20 million.
“Although the construction of this project started in the financial year 2009-10, the project is still not complete seven years later. The builders’ work was divided into five phases with construction being advertised, evaluated and awarded to different contractors per floor,” Ouko said in a report.
The implementation of the builders’ works directed that basement, ground and first floors be done by one contractor and second and third floors by another. The upper floors were to be done by yet another contractor. “This has led to delays and occasioned the escalation of advertisement and tender costs,” Ouko said.
The Audiotor General has also raised queries with the omission of the project’s completion date.
An audit inspection carried out in 2016 showed there was poor workmanship, with signage listing of the contractors missing on site as required.
Labour PS Ibrahim Mohamed was at pains to explain why the project has dragged for the years.
“The ministry advertised for the building works through an open tender against the available funds which was adjusted and awarded by the ministerial tender committee to Lunao Enterprises at a sum of Sh71,239,810.80,” Mohamed told the National Assembly’s Public Accounts committee.
“Phase two and three were awarded to Makuyo Construction Co Ltd and Blue Stream Enterprises at a cost of Sh68,126,344.40 and Sh30,751,500.05 respectively,” the team chaired by Ugunja MP Opiyo Wandayi heard yesterday.
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