Taxpayers are reported to have lost Ksh330 million in payout to a Spanish firm Auditel Ingeniera Services for services that they did not deliver.
Business Daily reported on Tuesday, October 29, that the Ksh330 million had been paid for the upgrade of five stadiums in the country which have since stalled, and the guarantee for the millions given as security expired.
The amount is stated to have been part of the Ksh4.2 billion that had been given for the upgrade of stadiums in preparation for the hosting of the African Cup of Nations (CHAN).
The last-minute transfer of the championship hosting rights to Egypt prompted the Treasury to withdraw funding for the project, leading to the stalling of the ambitious plan.
The publication announced that the Sports Ministry had paid Auditel Ingeniera Services, a 20 percent advance on the Ksh1.6 billion contract for lighting, sound system and automated security access for the 5 stadiums and training pitches.
It further announced that the government had inked a deal with a Spanish Bank Bankiter SA Bank to refund millions in the event that the company failed to start the works, but the one-year guarantee period elapsed, leaving the taxpayers staring at the massive losses.
“In view of the foregoing, there is a risk of not recovering the advance amount of Ksh330,537,997 as the security guaranteeing the amount had expired and had not been replaced. It is also not clear when and if the project will be completed considering that the funding was withdrawn by the National Treasury.” the Auditor-General was quoted.
On January 19, 2018, DP Ruto pledged Ksh500 million cash injection from the Treasury to complete the refurbishment of the stadiums, reiterating that five stadiums were set to be completed by April and four by June 2018.
The stadiums that were set to benefit from the upgrade included the Moi International Sports Centre- Kasarani and Nyayo National Stadiums in Nairobi, Kinoru Stadium (Meru), Kipchoge Keino Stadium (Uasin Gishu), and Kenyatta Stadium in Machakos.
Business Daily reported that as of April 12, 2019, the contractor had only presented designs for the contracted works to Sports Kenya.
Video of DP Ruto promising cash for stadiums, courtesy of KTN News.
