EACC probes Sh5bn scam at Sports Kenya

Construction progress at Meru’s Moi Kinoru Stadium on September 15, 2017. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • The audit report notes that some of the documents sought for verification by the auditors are with the EACC.

  • The Ruringu contract was also awarded to M/s Funan Construction Company.

  • The Kirubia stadium contract was also awarded to Toddy construction.

  • The Kinoru stadium was awarded to M/s Toddy Construction Company limited.

The Ethics and Anti- Corruption Commission (EACC) is investigating the management of Sports Kenya over irregular award of tenders worth over Sh5 billion for the construction and renovation sports facilities across the country.

Of interest to the EACC detectives is also the failure by Sports Kenya to remit Sh287.693 million in statutory deductions- Pay As You Earn (PAYE) and VAT taxes for previous years as well as interest and penalties charged- to the Kenya Revenue Authority (KRA).

INVESTIGATIONS

Anti-graft agency CEO Twalib Mbarak said that the investigations are ongoing and those found culpable will be charged. 

The EACC officers are using the report of the Office of Auditor-General for the year 2017/18 currently before the National Assembly, in their investigations.

The audit report notes that some of the documents sought for verification by the auditors are with the EACC.

“The documents were reported to have been taken away by the EACC officers to assist them in their investigations of irregularities in the award of tenders,” the report signed by Mr Edward Ouko, whose eight- year term as Auditor-General ended last month, stated.

“It is not possible to confirm the efficiency, competition, fairness with which the contracts were entered into and the propriety or whether value for money spent was obtained,” the report says.

SIX CONTRACTORS

About Sh2.450 billion was dished out to six contractors in 2017 for the construction of eight county stadiums that remain incomplete with a majority being abandoned.

“A review of implementation status during the year under audit, revealed that there was delay in completion of various stadia while some contractors had abandoned sites.”

The latest revelations, puts the management of the Sports Kenya on the spot over prudent administration of public funds with fears that completion of the contractual works will lead to escalation of the total cost of the projects. The billions were awarded to different contractors in 2017.

Renovation works on five premium pitches and ten training grounds were to be completed within 14 weeks in readiness for the January 2018 CHAN championship that was to be held in Kenya.

However, the lack of seriousness on the part of Sports Kenya that supervised the works, saw some projects abandoned along the way while others work is yet to start despite payments being made.

This confusion led to the tournament that would have showcased Kenya’s tourism potential as well as boosting the local business, relocated to Morocco.

PITCHES

The five premium pitches are Moi International Sports Centre- Kasarani and Nyayo National Stadium in Nairobi, Kinoru Stadium (Meru), Kipchoge Keino Stadium (Uasin Gishu), and Kenyatta Stadium in Machakos.

The audit shows that Sh1.609 billion tender was awarded to M/s Auditel Kenya limited, a subsidiary of Auditel Indenieria Services from Spain for remodelling the five premium pitches.

This included designing, supplying, testing, commissioning and supervision of security, access control, communications, audio-visual and pitch lighting systems in the stadiums.

However, as at April 12, 2019, it was revealed by the auditors that the contractor had only presented the designs for the contracted works to Sports Kenya.

The report further notes that no activities related to the contract had begun on the ground on both the premium pitches and the training grounds.

The security guarantee for the project had also expired on February 28, 2018 and no evidence was presented to the auditors for revalidation at the time of the audit.

“In view of the foregoing, value for money has not been obtained and the delays to project completion may lead to unacceptable projects cost,” the report says.

Another contract worth Sh971,457,265 was awarded to M/s Gregori International SA for renovation of the five pitches and Sports Kenya was to supervise and certify the work done.

IRRIGATION

The South African company was required to undertake design, mobilisation, grass removal, irrigation, levelling, soil preparation and fertilization and installation of specialized grass- Bermuda/ paspalum.

It was also required to install sporting equipment in the five main pitches and ten training grounds that were earmarked for use in the CHAN 2018 championships.

But as at April 12, 2019, out of the ten pitches, only one- Utalii grounds had been renovated and that no works had commenced on the other nine training pitches.

“In view of the foregoing, value for money has not been obtained,” the report says.

An audit inspection carried out in Meru and Eldoret in March this year revealed that Gregori International carried minimal works at Kinoru stadium and never did any works at Kipchoge Keino stadium or any other training grounds in the two town despite being paid.

The eight county stadia are the Sh287.84 million Kamariny stadium (Elgeyo Marakwet), the Sh288.045 million Ruringu stadium (Nyeri), Sh304.204 million Kipchoge Keino stadium (Uasin Gishu), Sh259.604 million Karatu Ndarugu (Kiambu) and Sh299.309 million Wote stadium (Makueni).

The others are Sh295.263 million Marsabit stadium (Marsabit), Sh274.208 Kirubia stadium (Tharaka Nithi) and Sh442.137 million Kinoru stadium in Meru.

Kamariny was awarded to M/s Funan Construction Company.

CHANGING ROOMS

The construction works, which entailed construction of Kerio Valley view point, VIP pavilion, changing rooms, reference rooms, medical rooms, anti-doing room, office for stadium management pitch works and track lanes, started in January 2017 with completion due in May 2018.

However, the report reveals that at the time of the audit inspection in March this year, there was no noticeable pitch and track works and that the site had been abandoned.

The Ruringu contract was also awarded to M/s Funan Construction Company.

The works commenced in January 2017 and was to be completed in nine months.

But as at March 14, 2019, the contractor was not on site and that no works seemed to have been undertaken despite payments being made.

The Kinoru stadium was awarded to M/s Toddy Construction Company limited. Works started in January 2017 and was expected to be completed in August the same year.

The scope involved pitch works, sub base for tartan track, VIP pavilion, water system, ablution blocks, terraces, parking and perimeter wall.

An audit inspection in March this year showed that the contractor was yet to be paid Sh244.842 million and had threatened to stop due the payment delays.

KIRUBIA STADIUM

The Kirubia stadium contract was also awarded to Toddy construction. Works commenced in January 2017 and was expected to be completed after nine months.

But a majority of the works- pitch works, a six lane track, VIP pavilion, water system and ablution blocks had not been completed as at March this year.

The construction of Wote stadium was awarded to M/s Taphes and Nitram Enterprises limited. The works commenced in January 2017 and were expected to have been completed by May 2018.

But as of May this year, there was no noticeable pitch and track works, underground excavation, perimeter wall and that the site had been abandoned despite the monies being paid.

The contract had also expired and had not been renewed or extended.

Karatu stadium was due in May 2018 after the commencement of works in February 2017.

But the contractor- M/s Smith and Gold Productions limited- abandoned the site due to failure by Sports Kenya to pay for certificates of completed works.

EXCAVATION

The works already done included excavation of the pitch, installation of drainage pipes and backfilling of the main football pitch.

The VIP pavilion was still at foundation level and works on the six lane athletic track, ablution blocks and parking was yet to start.

At Kasarani stadium, Sh31.020 million was awarded to M/s Nitram and Taphes Enterprises limited for construction of an indoor sports facility.

As at April this year the works had not been completed despite expiry of the contract period and the contractor was no longer on site.

At the Nyayo stadium, M/s Lexis International limited was contracted for civil works worth Sh206.690 million and another tender for builders works at Sh325.829 million.

The two projects were awarded in August 2017 and were to be completed in 14 weeks.