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KAA can't trace Sh4.3bn pay to Chinese firm for terminal

Kenya Airports Authority managing director Jonny Andersen
Kenya Airports Authority managing director Jonny Andersen when he appeared before National Assembly Public Investments Committee, June 28, 2018. PHOTO | JEFF ANGOTE | NMG 

Kenya Airports Authority (KAA) management has for the second time in a row failed to table documents in support of Sh4.31 billion payments to a Chinese contractor who did not undertake any work following the cancellation of the Greenfield terminal project.

The Public Investments Committee (PIC) accused KAA management of conspiring to conceal documentation that is needed to justify an audit query raised by Auditor-General Edward Ouko on the tender.

Mr Jonny Andersen, the KAA chief executive officer told MPs that his officers were still working on information on the Sh65.4 billion Greenfields terminal that was to be constructed at the Jomo Kenyatta International Airport.

“The information is yet to be certified by the auditor. The Greenfields terminal is a very complex matter. We don’t need to go quickly on it. I ask that you give us two weeks to present documents,” Mr Andersen told the committee chaired by Mvita MP Abdulswamad Nassir.

Verify documents

Mr Nassir on Tuesday directed Mr Andersen to accompany a representative of Mr Ouko to his office to verify the documents and report the findings.

Mr Kalinda Muli, the audit manager in charge of KAA said the authority failed to avail any documents on the Greenfield project despite staying at its premises for over five hours on Tuesday evening.

“My junior manager went to KAA ahead of me yesterday. When I arrived we found them still struggling pulling out information. It’s a huge task and I knew they couldn’t finish. I stayed there for five hours.

"I think tracing the documents may be a problem or they could be reluctant to release the information to us,” Mr Muli told the committee, which directed Mr Andersen to table the documents latest Monday or MPs will proceed to write a report without KAA’s input.

The Chinese contractor, M/S ACEG-CATIC JV, landed the lucrative tender which was part of Vision 2030 flagship projects.

“The Sh4,310,901,805 was paid to the contractor as part of the advance payment as provided for in the contract agreement. The same was to be recovered by offsetting from subsequent progress payments, while Sh129.9 million was paid to the consultants for project supervision and design review fees, which was contractually payable on time basis,” Mr Andersen said on Tuesday.

The project consultants Louise Berger, incorporating Runji and Partners, were paid Sh129 million, money which taxpayers lost following the termination of the contract.

Sh7m for groundbreaking ceremony

Mr Andersen told MPs that KAA spent Sh75 million on the groundbreaking ceremony that was presided over by President Uhuru Kenyatta on May 23, 2014.

Audit findings shows that the Chinese contractor was paid before commencing construction.

Mr Ouko said the deal with the contractor was firmed and secured through an advance payment guarantee.

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