The Public Investment Committee on Commercial Affairs and Energy concluded its review of the Geothermal Development Company’s (GDC) audited accounts for the 2020/2021 fiscal year.
The committee, chaired by Hon. David Pkosing (Pokot South), raised concerns about GDC management’s decision to cancel a Sh344.5 million tender before its execution.
Paul Ngugi, GDC’s Managing Director, explained that the contract, started in 2014, aimed to install and commission an information and fuel management system.
However, the project stalled in 2015 after a Sh59.4 million payment to the contractor. The contract was canceled due to an EACC investigation into the procurement process.
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Mr. Ngugi’s explanation led to sharp reactions from committee members. They questioned the decision to cancel the contract, especially after part of the payment was made.
“EACC has no power to stop or suspend a procurement process or a project. It’s only a court of law or Parliament that has those powers. Why did you suspend it?” posed Hon. Pkosing.
Mr. Ngugi explained that the EACC’s scrutiny made it hard to continue the project.
He also revealed that the company received only Sh15 million of the Sh59.4 million paid for the project’s first phase.
Hon. Pkosing directed GDC to provide payment vouchers to the committee. He said those responsible for the payment would be held accountable for the loss.