Taxpayers to pay Sh1b more for police houses

A police housing project that was to have cost taxpayers Sh1.4 billion will now cost Sh2.2 billion, the Sunday Nation has established. The West Park Housing Project was half complete and more than Sh736 million had already been spent when the contractor was thrown off the site for alleged non-performance.

The contract was subsequently awarded to Ms Ongata Works Limited for a staggering Sh1.4 billion for the balance of the project. The change comes a month after the government awarded a Sh400 million contract to an Italian firm to complete work on the Vice-President’s official residence.

Just as in the case of the residence, the ministry of Public Works did not specify why the taxpayer has to pay more money for projects that should have been completed last year. Ongata Works was the second-lowest bidder at Sh1.371 billion against China Jiangxi International’s bid of Sh1.339 billion. It is not known why the Chinese firm did not win with the lowest bid.

But the ministry, while confirming that Ongata Works had won the police housing tender, said it was getting value for taxpayers’ money. “The new contractor is competent, professional and has the capacity to complete the project within the specified budget and time,” the ministry said in response to questions from the Sunday Nation.

Others who bid on the housing project include Ms NK Brothers (Sh1.46 billion), Ms Magic General Contractors (Sh1.57 billion) and Ms Dinesh Construction Company (Sh1.599 billion). The ministry had estimated the contract to complete the houses would cost Sh1.48 billion.

The project consists of 115 maisonettes, 24 blocks of three-bedroomed flats and another 18 blocks of two-bedroomed flats on a controversial site that is also being claimed by a women’s group. Incidentally, Ongata Works was a sub-contractor on the road network for the same housing project for which the contract was cancelled last year by Minister for Public Works Chris Obure.

The award of the police housing project next to Wilson Airport comes a year after the government cancelled the Sh1.4 billion contract awarded to Dimken (K) Ltd three years ago. Dimken had been working on the VP’s residence before being thrown out for non-performance.

While the ministry says Dimken had completed only 45 per cent of the work, managing director Dick Githaiga said more than 60 per cent of the building work had been completed. He further said the road network for the project had been awarded to Ongata Works who had done more than 90 per cent of the job at a cost of Sh380 million.

Another sub-contractor, who was doing the sewerage work, had already linked the housing project to the main line along Mombasa Road. Mr Githaiga said electrical work on the project had been 45 per cent complete before Mr Obure threw him out. The government had already paid him Sh736 million, which represents almost 55 per cent of the entire project.

The MD said he had filed a case for arbitration and therefore could not sat any more about it. The arbitrating firm, Mururu and Associates, also declined to comment because the issue was pending. But sources close to the arbitration told the Sunday Nation that the ministry of Public Works was yet to pay the arbitrator, hence the delay in finalising the matter.

While it was not clear why the government would opt to spend a further Sh1.4 billion to complete the housing project, spokesman Ali Chege said the decision was linked to inflation and high cost of construction materials. He said the remaining aspects of the project would be implemented in phases, and it is expected to be complete by September 2011 when police officers would be able to occupy the housing units.

Mr Chege also said a land ownership dispute between the police and Wilson Mutumba Women’s Group had been resolved.
When Dimken was awarded the contract in January 2006, the contractor was expected to finish the project within two years and hand it over to the government by January 2008.

But after many delays and changes in design work, the government finally cancelled the contract and has now re-awarded it. By the time the contractor was thrown out on October 8, 2008, the firm had issued 32 payment certificates and an amount of Sh930 million had been certified for payment.

While the government confirms it paid out Sh736 million to Dimken, it claims that it recovered Sh200 million from the contractor by re-calling his performance bond, advance payments and other expenses.

Last month, the ministry awarded Ms Italbuild Imports a contract worth Sh400 million to complete the VP’s house, over and above the initial cost of Sh196 million. Italbuild pipped Ongata Works in the pre-selected tendering process that only involved four companies.

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Land dispute unresolved

The half-completed West Park Housing Project, for which the government has awarded a new contact to complete, stands on land that has been in dispute since 2005. Wilson Mutumba Women’s Group has laid claim to the 27-hectare land near Nairobi’s Wilson Airport.

The group has submitted an allotment letter issued by the ministry of Lands dated November 1, 1990. The women claim they were allocated the land by retired President Daniel arap Moi through the assistance of a former Permanent Secretary for Internal Security, the late Hezekiah Oyugi.

But their bid to reclaim the property ended with their arrest and incarceration at Langata police station. A legal battle ensued with police accusing five members of the group of trespass. But Kibera Principal Magistrate Hellen Wasilwa acquitted the five members on August 16, 2007, and asked them, together with police, to file a case to determine the true owners of the land.

Two officials of the women’s group claim police took the title deed issued to them when they raided their premises at West Park estate on August 16, 2005. The Permanent Secretary for Lands Dorothy Angote said she cannot help the women’s group because they do not have a title deed.

She advised the group to furnish her office with the necessary documents, including the receipts showing they paid the statutory amount to get the allotment letter, to facilitate the issuing of another title deed.