MPs summon Treasury, Transport CSs over audit queries linked to roads agencies

The National Assembly's Public Investments Committee on Commercial Affairs and Energy has summoned Treasury Cabinet Secretary John Mbadi and his Roads counterpart Davis Chirchir to appear before the Committee next Tuesday.

Their appearance follows rising concerns over audit queries linked to road agencies, including the Kenya National Highways Authority (KeNHA), Kenya Rural Roads Authority, and Kenya Roads Board.

During a review of KeNHA's audited accounts for the Financial Years 2020-2021 and 2021-2022, Committee Chairperson, MP David Pkosing expressed frustration at the agency's inability to adequately address several critical issues.

The audits revealed troubling findings, such as numerous incomplete projects, significant pending bills, and delays attributed to contractors.

"We want to move forward for the betterment of our country, and we need to understand why these pending bills exist," Pkosing said on Wednesday.

He highlighted the Cabinet Secretaries' responsibility in clarifying the outstanding payments affecting road agencies.

The Chairperson pointed out that some contractors have not been paid for over three years, leading to severe financial hardships.

"This is not the fault of the Director-General or his team, but a political issue," Pkosing stated, noting that local MPs often request additional projects during presidential visits, complicating the situation further.

Vice-chairperson, MP Lilian Gogo emphasised that Cabinet Secretaries must ensure the implementation of promises made by the president during his nationwide tours, particularly in regions like Nyanza and Western Kenya, where many road projects remain stalled due to unpaid bills.

Contractors' woes

Farah Yusuf (Wajir West) expressed concern for contractors facing dire consequences, with some having auctioned their properties or even taken their own lives due to financial stress.

The audit flagged a 75 per cent increase in KeNHA's board expenses, which rose to Sh 72,155,817 for the 2021/2022 financial year from sh41,203,440 the previous year.

Additional scrutiny revealed misclassified budget items, including sh133,400 incurred during a cancelled board induction trip due to COVID-19, which KeNHA confirmed was refunded by September 2023.

Concerns were also raised over Sh 8,321,118 spent on "Ministerial and Other Activities," which should have been budgeted separately. KeNHA clarified that this expenditure was for board participation in national functions.

The audit questioned Sh11,381,934 spent on overseas training, although KeNHA provided documentation showing the training plan was approved by the State Department for Infrastructure.

The audit further noted that KeNHA's cash balance of Sh13,993,063,067 included Sh128,989,967 from dormant bank accounts related to completed road projects.

The Authority confirmed the closure of six dormant accounts, with one still active due to an ongoing project.

In response to the challenges highlighted, KeNHA Director-General Eng. Kungu Ndungu called on the National Assembly to assist the agency in securing essential funding.

He emphasised the importance of investing in infrastructure.

"Roads bring development, and development follows roads. It is crucial that Kenya invests in a robust road network, just as our neighbouring countries are doing," Kungu added

Kungu also stressed the need for affirmative action in funding road infrastructure to ensure equitable development across regions.