In her latest audit report, Gathungu pointed out that despite the massive financial commitment, progress on the dam’s construction remains minimal. A physical inspection carried out in October 2024 revealed that only basic activities, such as drilling and grouting, were underway. This is in stark contrast to the billions of shillings already spent by the State Department for Water and Sanitation
Auditor General Nancy Gathungu has raised serious concerns over the Thwake Multipurpose Water Development Program, highlighting the slow progress of the project and its escalating costs. As of June 2024, the project had consumed a staggering Ksh 32.8 billion, yet significant issues persist, including irregular payments, incomplete works, and non-compliance with legal and financial protocols.
In her latest audit report, Gathungu pointed out that despite the massive financial commitment, progress on the dam’s construction remains minimal. A physical inspection carried out in October 2024 revealed that only basic activities, such as drilling and grouting, were underway. This is in stark contrast to the billions of shillings already spent by the State Department for Water and Sanitation.
Key concerns highlighted in the report include:
- Slow Construction and Faulty Works: Gathungu expressed concern that certain sections of the dam had accumulated debris, and that the workers’ camp, which included 30 newly built houses, was incomplete. Critical facilities, such as toilets, bathrooms, electricity, and water connections, were either missing or non-functional. Additionally, the houses lacked proper security, with only a partial fence made of old iron sheets, loosely installed.
- Contract Extensions and Budget Overruns: Originally contracted for Ksh 36.97 billion, the project was supposed to be completed by November 2022. However, delays have led to multiple extensions, with the new expected completion date now set for December 2024. The cost of the project has also surged, with an additional Ksh 9.3 billion requested, raising the contract price by 32%. This request violates the Public Procurement and Asset Disposal Act, which stipulates that contract variations should not exceed 25% of the original contract amount within the first 12 months.
- Unjustified Payments and VAT Issues: The audit also uncovered that Ksh 124 million, which had been recommended for deduction by the contract implementation team, was paid to the contractor without proper justification. Moreover, while interim payment certificates included VAT of Ksh 203.98 million, this tax had not been remitted to the Kenya Revenue Authority (KRA) by June 30, 2024, risking penalties and additional costs to the project.
- Design Changes and Legal Violations: The report also raised concerns that changes to the dam’s design were made after the contract had been signed and construction had begun, which contravenes legal and procedural guidelines. These design changes contributed to the unexpected cost increases.
- Irregularities in Community Projects: Gathungu also pointed out issues with various community projects funded by the program in Makueni and Kitui counties. At health facilities and schools, the audit uncovered defects such as poor-quality ceiling boards, wall cracks, leaking roofs, and damaged flooring.
In summary, despite the significant financial investment, the Thwake project has suffered from poor planning, delayed execution, and financial mismanagement. The report warns that the project may not be completed within the original contract period and raises doubts about the recovery of advance payments, further deepening concerns about its long-term viability.
