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"content": "it was necessary to undertake any audit that the PS Ministry of Water and Irrigation had not blocked or interfered with investigations. In any case, EMU and IAC are institutions that have been used by Ministries to investigate any misappropriation of public funds. The Committee found out that consultants, contractors and the two dam experts were sourced, pre-qualified and awarded contracts as per provisions of the PPOA Act of 2005. The Committee further found that the procuring entity was NWCPC through its Corporation Tender Committee appointed by the Managing Director. The Committee found out that the procurement procedures were duly followed. The Committee was, therefore, satisfied with the process that was used. Although there appears to be conflict of interest in the case of consultants and dam experts at Chemsusu Dam, the Committee established that the matter was sorted out by the corporation. It should be noted that Kenya has about five dam experts and the service offered by these experts is consequently not very readily available in Kenya. With regard to the National Water Conservation and Pipeline Corporation, we found out the following from the evidence adduced: That the dams will act as storage of flood waters. We are satisfied that the five dams will be fed by seasonal streams. Based on the parameters taken into account, the dams, to us, appear viable and sustainable. The parameters I mentioned include hydrology of the catchment area; the catchment area itself; precipitation of the catchment area; evaporation rate; and sipage rate; river regime and morphology. Only two out of the five dams namely Umaa and Badasa have experienced technical challenges thereby necessitating the corporation and respective contractors to undertake additional grouting. Prior to the commencement of the project, detailed geotechnical investigations were carried out. The confidence limit of ground investigations is always low. This means that the actual ground conditions can only be established during actual construction. The additional grouting requirement is meant to guarantee the dam safety. Further, the Committee found out that NWCPC produced the services of dam experts through the normal procurement law. The procurement of contractors and consultants for the construction of the four large dams was done in a procedural way. But the dams progress report as of March 13th this year is satisfactory, despite the fact that, one of the dams; namely, Umaa Dam, stalled. We also found out that, the Board of Directors and the Chairman of National Water Services Corporation (NWSC) were not working cordially. We are aware this would affect the Corporationâs performance. We established that the Chairman of the Corporation was running the affairs of the corporation without following the laid down procedures of the State Corporations statute. We found out that the current Managing Director of NWSC was denied confirmation and subsequently suspended by the Chairman of the Board without the consent of the entire Board of Directors. Further, we found out that the Managing Director of NWSC had differences with the rest of the senior management because of the conflict brought by the Chairman of the Board, where the Chairman bypasses the Managing Director and works with line managers. Mr. Temporary Deputy Speaker, Sir, the Committee noted that KPMG forensic audit assessed the value of pending bills at NWSC as to be Kshs1,267,543,007.79 and according to KPMG, only Kshs157,656,855.45 is payable. Therefore, Elburgon Stores and associated companies who had claimed over Kshs430 million from the corporation, according to KPMG, can only really be paid Kshs197,000,000(?). The Committee"
}