MPs question KeNHA's Ksh.128 million stashed in dormant bank accounts

MPs question KeNHA's Ksh.128 million stashed in dormant bank accounts

KeNHA Director General Kungu Ndungu (right) appears before National Assembly's Public Investments Committee on Commercial Affairs and Energy on October 23, 2024.

Members of Parliament on Wednesday raised alarm over financial queries arising from the Kenya National Highways Authority (KeNHA's) audited accounts for the financial years 2020/2021 and 2021/2022. 

Appearing before National Assembly's Public Investments Committee on Commercial Affairs and Energy, KeNHA Director-General, Eng. Kungu Ndungu, and his team were tasked to explain why Ksh.128 million was tied to projects that were already completed. 

The MPs noted that the Ksh.128 million was stashed in bank accounts that lay dormant; with speculations that such loopholes could provide an opportunity for theft of funds through corruption. 

In response, the Agency confirmed that six dormant accounts had been closed and noted that one account, which is tied to an ongoing project, remained active. 

The MPs also raised several other issues from the audit including numerous uncompleted projects, large pending bills, uneven resource distribution for development projects, and contractor delays.

On the issue of pending bills, chairperson David Pkosing (Pokot South) expressed concern that Treasury CS John Mbadi and his Transport counterpart Davis Chirchir needed to explain why the road agency struggles with outstanding payments. 

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

He also pointed out that some contractors had not been paid for over three years, leading to significant hardships in discharging their duties. 

Pkosing noted that Mbadi and Chirchir would be required to appear before the Committee on Tuesday, October 29, to address the matter. 

"This is not the fault of the Director-General or his team, but a political issue," the chairperson noted. 

The audit also questioned why the agency used Ksh.11 million on overseas training at a time when the government was keen on implementing austerity measures. 

In the agency's defence, KeNHA's Director-General provided documents detailing the approval of the travel plans by the State Department for Infrastructure.

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