MPs question use of funds in Ngala Utalii College project

Lawmakers have questioned how money meant for the ongoing construction of the multibillion-shilling Ronald Ngala Utalii College in Vipingo, Kilifi County, was used.

Members of the National Assembly’s Committee on Implementation accused the contractor, Mulji Devraj, of colluding with some officials from the Tourism Fund and the Ministry of Tourism to swindle money through penalties and interest.

Tourism Fund officials confirmed that as of June 30, 2020, they had paid Mulji Devraj Sh4 billion of the Sh4.9 billion allocated for the project.

They also said the project consultant, Baseline Architects Ltd, was paid Sh3.2 billion, while lawyers and the environment watchdog Nema were also paid Sh117 million.

The Tourism Fund needs a total of Sh560 million to clear debts to the contractor (Sh185 million), sub-contractors (Sh20.5 million) and the consultant (Sh354 million).

The committee, led by chairperson Narok North MP Moitalel Ole Kenta, toured the site to establish whether there was prudent use of public funds.

They also wanted to find out why the project had not been completed, seven years after it started.

They noted that there was no value for the taxpayer money spent on the project.

The lawmakers’ investigation followed a petition by Kilifi North MP Owen Baya to Parliament asking the committee to find out whether there was prudent use of public funds in the project.

It had been established that the college, which was to cost Sh4.9 billion - the cost having been scaled down from the initial Sh8.9 billion - had lost Sh2.9 billion in interest and penalties.

Work on the proposed state-of-the-art, 3,000-capacity college started in April 2013 and was to be completed in 2017.

The project was initiated by the Ministry of Tourism under the Tourism Fund.

Speaking to journalists, Mr Ole Kenta said more money had been pumped into the project than what was budgeted.

“The project started in 2013 and up to date, it is still not complete. Sh4.9 billion was supposed to be used to construct and complete the project, but the incomplete facility has consumed about Sh8 billion and the work done is only at 60 per cent,” he said.

He warned that legal action would be taken against anyone who fraudulently received money from the project.

But in a meeting between the committee, the Tourism Fund Board, Mulji Devraj and Baseline Architects, it was established that the Tourism Fund did not engage an officer from public works as required by the law.

It was also established that some major facilities in the project plans were omitted.

These include a nursing bay, a fire engine and a primary school.

The project’s initial estimated cost was Sh1.9 billion before it was raised to Sh8.9 billion and later reduced to Sh4.9 billion.

Kilifi County Commissioner Kuswa Olaka, the chair of the County Implementation Coordination Committee, said the slow pace of construction was also an issue.

He observed that the frenzy of activities at the site might have started a few days ago.

He also disclosed that the implementation team had proposed that the college be attached to Pwani University.

“We have been concerned about the rate of implementation of the project because we have visited the site about five times and there has been no activity taking place,” he said.

“We were not very happy and part of the discussion was that if we are not making any progress, we should look for an alternative and have the centre attached to Pwani University.” 

The college was to offer courses, including marine studies, to local and international students.

The remaining money, Mr Baya said, is not enough to complete the project considering what is still left to be done.

The MP questioned where the Tourism Fund was getting money to pay penalties and interest.

“If the contractor has been paid Sh4 billion, it means that he only has Sh900 million to complete the project, which is not enough,” he said.

“The college will take more money than expected. For a project of Sh4.9 billion, you have constructed up to 60 percent with a difference of 40 per cent.”

He said there was a conspiracy to ensure that there was no progress on the project.

“The project is being deliberately delayed by the contractor and government officials to siphon public money,” he said.

Belgut MP Nixon Koech said officials from Baseline Architects did not tell the committee what they had done since 2013 to deserve to be paid over Sh3 billion.

Mathioya MP Peter Kihara said it did not make sense that the consultant was walking away with an amount of money similar to what was allocated for the project.

“We can’t have a Sh4 billion project and a consultant takes a similar amount of money,” he said

Also present was Mugirango North MP Joash Nyamoko and Msambweni MP Faisel Bader.

Speaking on behalf of Baseline Architects, Dominic Mwatanya said they had to review the project again to identify major works that will be implemented in 12 months under the accelerated programme.

He said they want to complete building the school first before embarking on the hotel.

He said the accelerated programme will cost Sh1.96 billion under the first part of phase one.

Other projects, including the library, will be built under the second part of phase one.

Work on the accelerated projects started in June and is expected to be completed in July 2022.

The project includes a student centre, an administration block, part of the tuition blocks, a kitchen and a dining hall, a 250-capacity student hostel, a sports complex, houses that will include two- and three-bedroom maisonettes and a waste management plant.

Tourism Fund Board acting CEO David Mwangi said phase one is expected to be completed by July18, 2022.

But the second phase, which will include building a hotel, will be implemented under a public-private partnership due to financial challenges.

“We are working towards obtaining a solid public-private partnership before the commissioning of the project,” he said, adding that in the arrangement, the Tourism Fund will only offer land

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