The Kenya Airports Authority (KAA) is facing tough questions from Parliament over Sh4.5 billion in irregular payments linked to the failed Greenfield Terminal project at Jomo Kenyatta International Airport (JKIA).
On Thursday, the Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, grilled top KAA officials, including acting Managing Director Nicholas Bodo, during a session that examined the Authority’s audited accounts between 2018/2019 and 2021/2022.
One of the main issues raised was the controversial payment of Sh75 million for the groundbreaking ceremony held in 2014.
The money, which was reportedly paid to contractors and listed as a “contract variation,” did not appear in the original contract or budget documents.
KAA officials defended the expenditure, saying the ceremony was part of Vision 2030 and was led by the President. They said the funds came from contingency allocations and were approved by the tender committee under the Public Procurement and Disposal Act of 2005.
But the committee questioned why funds meant for construction were used for ceremonial purposes. Kaloleni MP Paul Katana challenged KAA to name those responsible for authorizing the spending.
“How can there be such a huge variation in the cost of a project that hasn’t even started? This must not be allowed. We need accountability,” he said.
Committee chair David Pkosing stressed the need to establish whether any of the individuals who organized the ceremony are still working at KAA. Acting MD Bodo explained that most of those involved had already left the Authority, as the issue dates back over a decade.
Nyeri Town MP Duncan Mathenge warned that similar financial issues could recur unless the committee takes serious action. Mwangi Kiunjuri, also sitting on the committee, pointed out that many problems flagged by the Auditor General might have started at board level.
The committee also questioned advance payments of over Sh4.5 billion made to contractors and consultants without proof of completed work as of June 30, 2019. These included Sh4.31 billion to the main contractor ACEG/CATIC JV, and Sh216 million to consultants Louis Berger JV Runji and Partners. Additionally, PricewaterhouseCoopers received Sh7.4 million after its contract was cancelled under unclear terms.
KAA said the advance to ACEG/CATIC was within the contract and secured by a bank guarantee. They added that the payments were recovered through mediation after the project was terminated in 2016. The consultancy payments, KAA said, covered design and supervision services already delivered.
However, the committee raised concern over the lack of clear records showing mutual agreement on the contract termination, warning that this could expose the government to legal claims. KAA responded with documents indicating that both contractors and consultants had acknowledged the termination and that the disputes were resolved amicably.
The Greenfield Terminal project was intended to expand JKIA’s capacity but was abandoned in 2016 amid controversy.
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