KAA Managing Director grilled over use of Ksh.75M in Greenfield terminal project at JKIA

Appearing before the Public Investments Committee on Commercial Affairs and Energy, Bodo and his team were required to address an irregular payment of Ksh.75 million allegedly used for the groundbreaking ceremony of the Greenfield Terminal project in 2014.

Records showed this amount was paid to contractors as a contract variation despite no such provision existing in the original contract or bill of quantities.

KAA's Managing Director defended the payment, explaining that the Head of State officiated the ceremony, requiring logistical preparations that were not budgeted for. 

He added that they used contingency funds within the contract, with expenditure approved by the tender committee under the 20005 Public Procurement and Disposal Act (PADA).

Chaired by Pokot South MP David Pkosing, the Committee questioned classifying ceremonial expenses as project variations, suggesting misuse of public funds.

Bodo was also questioned by Kaloleni MP, Katana Paul Kahindi, on the identities of the committee members responsible for organizing the groundbreaking ceremony.

“How can there be such a huge variation in the cost of a project that hasn’t even started? This committee must take the matter seriously and hold those responsible accountable. We cannot allow people to play around with taxpayers’ money. They must be dealt with accordingly to serve as an example to others,” Katana said.

The committee also examined nugatory payments exceeding Ksh.4.5 billion made to contractors and consultants without evidence of completed work by June 30, 2019. 

This included Ksh.4.31 billion in advances to the main contractor ACEG/CATIC JV and Ksh.216 million to the consulting firm Louis Berger JV Runji and Partners.

Audit records showed PricewaterhouseCoopers received Ksh.7.4 million after their technical advisory contract was terminated under unclear circumstances.

MP Katana Paul Kahindi questioned how such large cost variations could occur before project commencement, demanding accountability for taxpayer money misuse.

Committee Chair Pkosing emphasised the need for accountability, while MP Duncan Mathenge warned that similar issues could recur without proper action.

MP Mwangi Kiunjuri noted that many audit queries may have originated from board-level decisions.

On his part, Bodo maintained that the Ksh.4.31 billion advance payment was contractually valid and backed by Advance Payment Guarantee, with amounts later recovered or settled through mediation after contract termination.