Kandie grilled on Sh4.9bn Ronald Ngala University campus

Labour Cabinet Secretary Phyllis Kandie was on Tuesday taken to task by MPs over inflated figures paid to consultants for the construction of a Sh4.9 billion university campus.

Ms Kandie told the Public Investments Committee the payments amounting to Sh3.1 billion were paid to nine consultants, including to a state agency, for the construction of Ronald Ngala University campus in Kilifi County, a day before she was appointed Tourism Cabinet Secretary on May 14, 2014.

“The ministry (Tourism) approved the contract and payment of the consultants, 70 per cent of the fees due to them, one day before I assumed office as the minister for Tourism,” she said.

Committee chairman Adan Keynan said the project could have cost much more than had been reported, given the “hidden costs”. This is after Ms Kandie said the amounts paid to consultants were not part of the Sh4.9 billion cost of the project.

The Tourism ministry had reported Sh1.4 billion as the amount paid to the consultants which was at variance with the Sh3.1 billion reported in the Auditor-General’s report.

But even the Sh1.4 billion, the consultants are reported to have been paid, still went beyond the limits in public procurement regulations, in which consultants should not be paid more than 15 per cent of the project cost.

The committee has been investigating audit queries on the project earmarked as a Vision 2030 flagship, especially after the cost was increased from Sh1.9 billion approved by the Cabinet, to Sh8.9 billion, before Ms Kandie revised it to Sh4.9 billion.

She was also taken to task for making a “unilateral decision” to scale down the project cost to Sh4.9 billion, outside of an approval by the Cabinet, but she said it was the “right decision to do given that the ministry was faced with resource constraints”.

Committee vice chairman Kimani Ichung’wa said the payments were concluded in a suspicious manner, a day before the ministry was handed over to a new CS. He said it may have been a scheme to have the consultants paid a hefty sum.

He also questioned the scope of the project which had been scaled down, saying it amounted to furnishings and some ICT component, which did not amount to Sh4 billion, the amount by which the project was reduced.

PROJECT CONTINUING

Other Cabinet Secretaries who have overseen project implementation at various stages having held the Tourism docket during time project was continuing include current Tourism minister Najib Balala, and former CS Dan Mwazo.

The Labour minister was also taken to task for making a “unilateral decision” to scale down the cost of the project to Sh4.9 billion, outside of an approval by the cabinet, but she said it was the “right decision” to do given that the ministry was faced with resource constraints.

Mr Keynan who is also the Eldas MP, asked Ms Kandie about the legality of the decision given that the matter was still “active” before the cabinet, and it could decide that the Sh8.9 billion project continue, disregarding her decision.

Ms Kandie said she had written to the cabinet, after holding consultations with her Treasury counterpart Henry Rotich, but her letter, which was signed also by Mr Rotich, was not acted upon.

PIC Vice Chairman Kimani Ichung’wa said the payments were concluded in a suspicious manner, one day before the ministry was handed over to a new CS, saying it may have been a scheme to have the consultants paid a hefty sum.

“The devil is in the consultancy fees, otherwise why was the project approved and signed a day before the ministry was handed over to a new person,” he said.

The consultants were reportedly paid with the Sh8.9 billion figure as cost of the project, but their fees were not revised down on the project figure being scaled down by almost half.

Mr Ichung’wa also questioned the scope of the project which had been scaled down, saying it amounted to furnishings, furnishings and some ICT component, which did not amount to Sh4 billion, by which amount the project was reduced.