Economy

Irrigation ministry sunk Sh27m into aborted Thwake dam launch

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Auditor-General Edward Ouko. FILE PHOTO | NMG

The Ministry of Irrigation wasted Sh27 million to procure branded caps and polo shirts for the aborted launch of the multi-billion shillings Thwake Multi-Purpose Development project.

The department used part of the millions to purchase men’s shirts and corporate uniforms that are currently wasting away in the ministry’s stores.

The expenditure was incurred in the year to June 2018 in preparation for the failed launching of the Sh82 billion Thwake dam project.

“The project was to be launched in the 2017/18 financial year, but to date, it has not been launched,” Auditor-General Edward Ouko says in his latest report.

The audit, Leader of Majority Aden Duale tabled in Parliament, shows that the procured items were still lying in the store and had not been issued.

“The expenditure of Sh26,915,000 is, therefore, wasteful and could have been avoided,” Mr Ouko said in a report dated March 15, 2019 and which is currently before the Public Investements Committee (PIC) for scrutiny.

In an earlier audit finding, Mr Ouko cast doubt on the likely of completion the grand water project after the government failed to negotiate or secure funding for three phases of the project.

He said although the African Development Fund and the Government of Kenya have approved funding of Sh42.365 billion for the first phase, the remainder of the phases with a budget of Sh39.845 billion is yet to be financed or planned for.

The dam project is being financed by a loan from the African Development Bank (AfDB) and the government through budgetary allocations to the Ministry of Agriculture, Livestock and Irrigation.

Phase One of the project comprises a multi-purpose dam and associated works where the government is pumping Sh32.342 billion while the ADB has committed Sh8 billion.

Phase one of the project, which involves construction of the dam and associated structures, is currently under implementation. The project is being constructed by a Chinese company, China Ghezuoba.

In the second phase, which comprises hydropower generation is being financed to the tune of Sh0.52 million by the government and ADB Sh3.83 billion.

The third phase will be the construction of water supply; sanitation and waste water infrastructure where the government will spent Sh5.27 billion while the AfDB funding is expected to be Sh5.36 billion.