This archive report was first published on 30 July 2019.
On July 30, 2019, a dispute between the contractor building MPs' 26-storey office block and Parliament emerged, threatening to cost taxpayers Sh1.18 billion.
The Parliamentary Service Commission (PSC) had entered into a Sh5.8 billion contract with China Jiangxi International Construction Company in 2012 to build a multi-storey office block to house the expanded 416-member bi-cameral Parliament.
However, the contractor is now demanding to be paid in US dollars, citing the current market rate of Sh102 per dollar. The tender stipulated that the contractor would be paid at Sh84 per US dollar, with 80 percent of the contract sum to be paid in US dollars and 20 percent in Kenya Shillings.
Senate Clerk Jeremiah Nyegenye told the Public Accounts Committee (PAC) that the PSC had so far paid Sh3.5 billion or 55 percent of the contract sum, using Kenya Shillings in an attempt to save public funds.
Mr. Nyegenye appeared before PAC to respond to audit queries raised by Auditor-General Edward Ouko for the Parliamentary Service Commission (PSC) books of accounts for the year to June 2018.
Mr. Ouko has questioned the payment of Sh28.2 million to China Jiangxi International as interest on delayed payments, citing the contract's provision that a payment attracts interest if it remains unpaid for 45 days from the date it is received by the commission.
