Two construction consultants paid Sh1.44 billion by the National Health Insurance Fund (NHIF) for botched works have snubbed a parliamentary committee investigating the projects.
Ujenzi Consultants and Baseline Architects skipped the session called by the National Assembly’s Public Investments Committee on Social Services, Administration and Agriculture, claiming that the matter to be discussed was subjudice as it was in court.
The committee wanted to grill the directors of Ujenzi Consultants and Baseline Architects over questionable payments of Sh1,444,687,484 for a proposed resource centre in Karen.
The visit follows audit quarries raised by Auditor-General Nancy Gathungu on the financial statements of the NHIF for the financial years 2019/20 and 2020/21.
Ms Gathungu has questioned the expenditure of Sh93,712,675 for the land parcel whose ownershipm she said, is in dispute and the matter is in court.
The auditor has also questioned the capital work-in-progress balance of Sh1,444,687,484 being payments for drawings and designs for the proposed resource centre.
Ms Gathungu said the construction of the resource centre has not commenced although the land was acquired 16 years ago.
She said the NHIF management explained that construction of the centre has not commenced due to lack of approval from the parent ministry and the land ownership dispute in court.
“Although the issue had been discussed by the Public Investment Committee (PIC), no action appears to have been taken on the PIC recommendations in its 22nd report that the NHIF should expeditiously pursue the prosecution and conclusion of the case to its logical conclusion,” Ms Gathungu said.
The committee, chaired by Navokholo Member of Parliament Emmanuel Wangwe, said available information indicated that the NHIF had paid Sh1.44 billion to various consultants in respect of arbitration awards to architects, quantity surveyors and professionals engaged in business plans, financial analysis consultancy, legal fees, architectural designs service fees and feasibility studies.
Mr Wangwe said during its deliberations, the committee noted that on April 22, 2002, Ujenzi Consultants was appointed and commissioned as a consulting quantity surveyor for the development of the NHIF Resource Centre.
Mr Wangwe said the committee has established that the Sh1,444,687,484 was a possible loss of public funds.
“In this regard, the committee has resolved to invite you to appraise it on the circumstances surrounding your appointment as a consulting quantity surveyor for the development of a resource centre for the National Health Insurance Fund on LR. No. 24968/2 located in Karen,” Mr Wangwe said in a letter to Ujenzi Consultants.
And “the total amount of money received from NHIF concerning the quantity surveyors and feasibility studies”.
Mr Wangwe asked Ujenzi to provide a contractual agreement signed between it and NHIF for the project.
On Baseline Architects, the committee wanted the directors of the firm to explain how it was appointed and commissioned as lead consultants for the design and supervision of the proposed development of the resource centre.
“In this regard, the committee has resolved to invite you to appraise it on the total amount of money received from NHIF with respect to the consultancy for the design and supervision services for the resource centre project.”
The committee was forced to adjourn the sitting prematurely after it became clear that none of the directors of Ujenzi Consultants and Baseline Architects would honour the invitation to the session.
Mr Wangwe tasked its secretariat to ascertain whether the matter is in court before the committee decides whether they will summon the two consultants again.
