The National Assembly’s Public Investments Committee on Governance and Education has ordered fresh investigations into the construction of a 1,000-bed students’ hostel at Jaramogi Oginga Odinga University of Science and Technology (JOOUST) following audit concerns over contract variations, payments amounting to Sh844 million and a pending court case involving the contractor.
The committee, chaired by Luanda MP Dick Maungu, resolved to summon former Vice-Chancellor Prof. Stephen Gaya Agong, project consultants and auditors after lawmakers raised questions over the project’s escalating costs and compliance with procurement laws.
The hostel project was awarded to Sasah General Merchants in February 2010 at a contract sum of Sh663.9 million and was expected to be completed within three years. However, certified payments eventually rose to Sh844.1 million.
According to the Auditor-General’s reports for the 2023/24 and 2024/25 financial years, the university failed to provide documents supporting contract variations worth Sh180.1 million. Auditors also noted that completion and handover certificates were unavailable despite students already occupying the hostel.
The committee further learnt that the contractor has sued the university in Civil Case No. E002 of 2023 over alleged unpaid dues, exposing the institution to potential additional legal costs.
Representing the Office of the Auditor-General’s Kisumu Regional Office, Kennedy Ongoi warned that the ongoing litigation could lead to unnecessary losses of public funds.
“Where a contractor takes a public institution to court demanding payment, the institution risks paying legal fees and penalties. These are avoidable expenses if projects are managed prudently,” Ongoi told the committee.
Appearing before the MPs, Prof. Agong, who served as JOOUST Vice-Chancellor until June 19, 2023, said the university had paid “close to Sh600 million” during his tenure and maintained that the final payment certificate reflected only Sh4.8 million.
However, committee chairperson Dick Maungu challenged the explanation, noting that Certificate Number Five, prepared on June 9, 2023—10 days before Prof. Agong left office—showed cumulative certified payments of about Sh844 million.
“You exited the university on June 19, 2023, and before you left, Certificate Number Five had already been prepared showing Sh844 million. Meaning all this happened within your tenure,” Maungu said.
Committee records indicated that the project attracted several variations, including additional payments of Sh19.8 million, Sh38.1 million, Sh44.1 million, Sh528,000 and another Sh79.6 million classified as fluctuations.
Maungu questioned the legal basis of the additional payments, saying the committee needed to determine whether they complied with the Public Procurement and Asset Disposal Act.
“There is something unique called fluctuations amounting to Sh79.6 million. We need to understand where this falls under procurement law because fluctuations and variations are different,” he said.
Prof. Agong denied approving the disputed Sh79.6 million, insisting it was not part of the final accounts he signed. He added that part of the expenditure may have been incurred on maintenance works undertaken after students moved into the hostel, including repairs following a fire incident.
He also defended the decision to retain the original contractor for maintenance works, arguing that engaging a new contractor while the facility was occupied would have been impractical.
The explanation failed to convince members of the committee.
Kilome MP Thaddeus Nzambia called for another hearing involving the former and current vice-chancellors, the Auditor-General and the contractor, saying all parties needed to appear before the committee to establish the facts.
Lungalunga MP Chiforomodo Mangale Munga demanded that all project records be produced, while Central Imenti MP Moses Kirima said the inquiry had “opened a Pandora’s box” and should establish who authorised the disputed payments and why the contractor resorted to litigation.
Current Vice-Chancellor Prof. Emily Akuno urged the committee to help resolve the long-running dispute surrounding the project.
Maungu directed that Prof. Agong be furnished with all project documents before the next hearing, saying the committee would establish accountability and recommend the recovery of any public funds found to have been lost.
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