Auditor General Nancy Gathungu has sounded the alarm over Sh 31.5billion pending bills accumulated on road projects.
Gathungu highlighted the concerns in her review of Infrastructure Departments’ books of accounts for the year ending June 2020. The audit singled out inadequate budgetary allocation and late exchequer disbursement as delaying prompt payment of the bills. Gathungu said the accumulated bills are subject to penalties and interests for the period they remain unsettled.
“The project (s) is at risk of incurring significant interest costs and penalties with the continued delay in making payments,” said Nancy Gathungu.
President Kenyatta’s administration, data shows, had by 2018 increased the length of tarmacked roads by more than 6,000 kilometres – 80,000km overall, albeit at a high cost considering the query on the bills. The road projects are a few billions shy of the Sh1 trillion mark, most of them funded by loans from China and the World Bank. The Dongo Kundu bypass project tops the list with a Sh 6.9billion pending bills.
Incurring significant interest costs
Infrastructure projects under the Mombasa West Integrated Roads Network, among them the expansion of Kipevu road, has accrued Sh2.27 billion pending bills. The Auditor General said the management has not explained the reason the bills were not settled during the year in which they occurred.
“The project is at risk of incurring significant interest costs and penalties with the continued delay in making payments. Failure to settle bills during the year to which they relate adversely affects the budgetary provisions for the subsequent year as they form the first charge,” warned Gathungu.
The Southern Bypass which was constructed for travellers not keen on plying through Nairobi town has a pending bill of Sh2.9 billion. The Isebania-Kisiii-Ahero road which is being expanded to modern standards has pending payables of Sh1.8 billion that will rise if it is not settled.
Western Bypass, which is part of the Nairobi Ringroad network, has been beset by pending bills amounting to Sh2.6 billion. The road starts in Gitaru and goes through Wangige to Ruaka. Thika Superhighway on the other hand has bills amounting to Sh1.3 billion from the improvement works initiated by the Kenya National Highways Authority.
Kenha attributed the delay in the discharge of the bills to delays in Exchequer releases and has committed to liaising with the line ministry to resolve the issue. Of that bill, a balance of Sh823 million relates to disputed claims that arose six years earlier but had not been disclosed as contingent liabilities over the prior periods.
