The main entrance to Rongo University.
Prolonged delays to complete two critical projects continues to affect service delivery at Rongo University, the Auditor General has cautioned.
Ms Nancy Gathungu noted that the completion of Sh1.3 billion library complex which has been pending since 15 January, 2021 still lies in limbo.
“The physical verification carried out in December, 2023 revealed that the project remained incomplete and the contract period had been extended to a new completion date of 5 February, 2025,” she said in her latest report.
Nation has however established that the construction of the library complex project which is currently at 95 per cent is yet to resume as the extended deadline of February 5, 2025 fast approaches.
According to the audit for the year ended 30 June, 2023, the university awarded a local contractor the tender to construct a library complex at a contract sum of Sh1,358,342,492 with a commencement date of 4 January, 2019.
Review of records revealed that the contractor initially requested for extension of the contract period by one year on 12 March, 2021 but is yet to deliver on the critical project for the institution which was awarded a Charter in 2016.
According to the architectural plan, Rongo University designed two sections of the library of 4 and 5 floors.
On the other hand, the delay in completion of fish pond project is still behind schedule as project verification carried out in December 2023 revealed that the project is lagging with respect to completion with certified works standing at 45 per cent as of 30 June, 2023, leading to time lapse.
At the time of audit verification, the contactor was not on site an indication that the project may have stalled.
The Sh4.5 million tender was also awarded to a local contractor according to an audit by Ms Gathungu.
Further, the management of Rongo University has been accused for breaching University Financial Management Policy and having an overdue student debtors of Sh62 million.
A review of records revealed that student debts totaling Sh26 million had been outstanding for over 30 days as at the time of audit in February, 2024.
On unsustainable wage bill, the university has been blamed for contravening Public Financial Management by using 74 per cent expenditure on wages and remuneration allowance instead of the standard 35 per cent.
During the year under review, Rongo University has also breached the law by employing 72 per cent of workers from the dominant ethnic community in the Migori County-based institution of higher learning and failing to comply with the law on ethnic composition.
The audit also raised concerns that Rongo University workers risk retiring empty-handed due to the institution’s failure to remit monthly pension schemes.
Ms Gathungu pointed out that the institution learning has a balance of Sh231 million which included payroll creditors of Sh179 million.
The report covering up to June 30, 2023 included unremitted amount of Sh163 million in respect of pension fund.
“As at the time of audit in January, 2024, the management had settled an amount of Sh38 million, leaving an outstanding balance of Sh125 million,” stated the report in part.
She cautioned that the institution of higher learning risks incurring avoidable costs in form of penalties and compounded interest.
Citing Section 53A (1) of the Retirement Benefits Act, she pointed out that it is an offence for an employer to fail to remit deductions from an employee’s emoluments to a retirement benefits scheme within 15 days of the deduction.
“The scheme may institute proceedings for recovery of the deduction after giving the employer at least seven days' notice,” she said.
The disclosure of the unremitted contributions points to the raging crisis of deducted but unpaid deductions in the pension industry.
Rongo University’s situation comes in the wake of reports indicating that more than half of public institutions of higher learning are financially struggling amidst the current challenge facing the implementation of the new funding model.
Last year, VCs of public universities revealed that the universities had accumulated debts of more than Sh60 billion in staff pensions and statutory deductions such as PAYE and National Hospital Insurance Fund as the figure could soar further due to accumulating interest.
Other public universities that have also accrued huge debt include Kenyatta University (Sh11.7 billion), Egerton (Sh9 billion), Technical University of Kenya (Sh8.2 billion), Jomo Kenyatta University of Agriculture and Technology (Sh8.1 billion) while Rongo was listed as having Sh431 million.
Efforts to get the current status of the issues raised by the Auditor General however did not bear fruits as Rongo University Vice Chancellor Prof Samuel Gudu did not respond to inquiries.
