Tourism Fund boss on the spot over high cost of HQ building

Parliament has directed Tourism Fund (TF) management to explain in detail how the cost of building the fund’s headquarters escalated by more than Sh600 million above the contract price.

The National Assembly’s Public Investments Committee (PIC) has also ordered Mr Joseph Cherutoi, TF’s chief executive officer, to provide a list of directors of African Safari Club limited (under liquidation) who signed bouncing cheques worth Sh9.9 million as payments to the fund.

On Tuesday, PIC chairman Adan Keynan was forced to stop committee proceedings after Mr Cherutoi company secretary Nancy Siboe failed to provide satisfactory responses to the queries.

Tourism Fund has until Monday to provide documentation relating to the construction of the building and the directorship of Africa Safari Club limited.

Mr Keynan rejected attempts by the TF management to link the family of retired President Daniel arap Moi to the directorship of Africa Safari Club limited without supporting documentation.

Ms Siboe had named Murtanza Hasanali as the then resident director of Africa Safari Club and a family associated with retired President Daniel Toroitich arap Moi.

“Show us evidence that any family of retired President were involved. Give us names of members of former president family listed as directors because what you are saying is misleading.

“I can’t allow you to proceed to invoke the name of retired President who is peacefully looking after his goats without substantiation.

“I direct that you withdraw that statement and furnish us with proper documentation,” he said, prompting Ms Siboe to withdraw the name of Mr Moi family.

Contract extension by four years

The House committee interrogated the TF managers on its books of accounts for 2014/15.

Mr Keynan demanded to know how the agency’s headquarters costs were escalated from the initial contract sum of Sh811 million to Sh1.4 billion.

The building was supposed to have been completed in November 2011 but was only handed over in November 17, 2016.

Mr Cherutoi was at pains to explain how the contract period was extended to 2016 as he failed to produce a document supporting the extension of the contract period by four years.

“The contractor continued from 2012 to 2016 when he handed over the project. The Sh811 million was contract sum for civil works that excluded subcontracts.

“It excluded the supply and installation of lifts, mechanical works refuse among others. The total sum for construction of the headquarters is Sh1.4 billion,” he told the committee.

Mr Cherutoi said it took four months to start the project due to difficulty in foundation excavation and the board was degazetted before giving an extension for the contract.

“The construction continued because there was no board to extend the contract. We agree there were delays and I have not seen an extension of contract given to contractor. The building is completed and ready for occupancy,” he told the MPs.

Completion certificate

Mr Keynan said something must have happened between November 30, 2011 when project was supposed to have been completed and November 17, 2016 when the CEO was given the completion certificate.

“How did the management, in absence of the board and expiry of the contract period extend the contract? The original sum was Sh811 million. We want to know the variation and the total cost of the project,” Mr Keynan said.

Kisumu Town West MP Olago Aluoch described the responses of the TF management as evasive and wordy and demanded to know who gave the consent for the variation of the contract.

The committee ordered Mr Cherutoi to provide the feasibility study of the contract, the tendering process, variations costs, the completion certificates and occupation certificates from the Ministry of Public Works.

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