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EACC Probes Sh5 Billion Scam at Sports Kenya

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Nyakundi Report

Newsroom 3 min read

This archive report was first published on 8 September 2019.

Published on September 8, 2019, the Ethics and Anti-Corruption Commission (EACC) is investigating the management of Sports Kenya over irregular award of tenders worth over Sh5 billion for the construction and renovation of sports facilities across the country.

The EACC detectives are also looking into the failure by Sports Kenya to remit Sh287.693 million in statutory deductions, Pay As You Earn (PAYE) and VAT taxes for previous years, as well as interest and penalties charged, to the Kenya Revenue Authority (KRA).

According to the EACC CEO Twalib Mbarak, the investigations are ongoing, and those found culpable will be charged.

The EACC officers are using the report of the Office of the Auditor-General for the year 2017/18, currently before the National Assembly, in their investigations.

The audit report notes that some of the documents sought for verification by the auditors are with the EACC.

“The documents were reported to have been taken away by the EACC officers to assist them in their investigations of irregularities in the award of tenders,” the report signed by Mr. Edward Ouko stated.

“It is not possible to confirm the efficiency, competition, fairness with which the contracts were entered into and the propriety or whether value for money spent was obtained,” the report says.

It is alleged that about Sh2.450 billion was dished out to six contractors in 2017 for the construction of eight county stadiums that remain incomplete with a majority being abandoned.

Renovation works on five premium pitches and ten training grounds were to be completed within 14 weeks in readiness for the January 2018 CHAN championship that was to be held in Kenya.

However, the lack of seriousness on the part of Sports Kenya that supervised the works, saw some projects abandoned along the way while others work is yet to start despite payments being made.

The five premium pitches are Moi International Sports Centre-Kasarani and Nyayo National Stadium in Nairobi, Kinoru Stadium (Meru), Kipchoge Keino Stadium (Uasin Gishu), and Kenyatta Stadium in Machakos.

It is alleged that Sh1.609 billion tender was awarded to M/s Auditel Kenya limited, a subsidiary of Auditel Indenieria Services from Spain for remodelling the five premium pitches.

However, as at April 12, 2019, it was revealed by the auditors that the contractor had only presented the designs for the contracted works to Sports Kenya.

The report further notes that no activities related to the contract had begun on the ground on both the premium pitches and the training grounds.

Another contract worth Sh971,457,265 was awarded to M/s Gregori International SA for renovation of the five pitches and Sports Kenya was to supervise and certify the work done.

However, as at April 12, 2019, out of the ten pitches, only one-Utalii grounds had been renovated and that no works had commenced on the other nine training pitches.

The eight county stadia are the Sh287.84 million Kamariny stadium (Elgeyo Marakwet), the Sh288.045 million Ruringu stadium (Nyeri), Sh304.204 million Kipchoge Keino stadium (Uasin Gishu), Sh259.604 million Karatu Ndarugu (Kiambu) and Sh299.309 million Wote stadium (Makueni).

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