Auditor-General Edward Ouko has warned that Kenyatta International Convention Centre (KICC) in Nairobi risks auction over unpaid bills that date back to when Kenya hosted the World Trade Organisation (WTO) conference in 2015.
Mr Ouko said the KICC risks losing its assets for non-payment of Sh390 million that an audit revealed were genuine.
Mr Ouko says in a special audit report before Parliament the claimants had valid contracts, and award letters and confirmation of works done, among other documents.
“We recommend payment of various contractors, suppliers and service providers. The corporation risks its assets being attached in the event that the claims are not settled as most claimants have contracts,” he says.
Suppliers to the tenth WTO ministerial conference held in Nairobi between December 15-19, 2015 are yet to be paid Sh175.5 million while KICC owes other contractors and suppliers Sh211.4 million for laying of new cabro pavements and refurbishment works, among others.
The pending bills initially stood at Sh1.1 billion before the special audit scaled it to Sh387 million.
Mr Ouko recommended that the KICC pays the bills to avoid risk exposure.
The failure by the KICC management led by managing director Nana Gecaga to settle the pending payments comes against President Uhuru Kenyatta’s directive on June 1 that all bills State agencies and counties owe and do not have audit queries, be paid by end of this month. Other works at the KICC that are unpaid include refurbishment of the Presidential Delivery Unit, the Office of the Government Spokesperson, and the Kenya International Boundaries Office, all under the Office of the President.
Reports indicate the Office of the President paid the KICC for the renovations but the contractors are yet to be paid — an indication that the cash could have been diverted for other use.