A Chinese contractor risks being kicked out by disgruntled contractors over a planned pending bills favor

Contractors who were duly awarded and therefore completed their projects awaiting payment are up in arms following leaked information that Bungoma County govt has written to the controller of budget requesting for 204 million meant to pay pending bills but Bungoma Governor Wycliffe Wangamati has already issued express orders to the finance office to pay all of it to the dual carriage contractor ZHONGMEI ENGINEERING GROUP LIMITED once the request is granted by the Controller of budget.

Among those who are owed by Bungoma County are young and upcoming entrepreneurs who are planning to storm the dual carriage in protest anytime this week to kick out the favored Chinese contractor since they are being punished in his favor. Mr. Kontrakta (not his real name) said: “Wangamati cannot continue treating us this way… Some of us have been auctioned, others have developed medical complications due to the frustrations and stress caused by his insensitiveness with one already hospitalized in Eldoret with stress related illness… We will storm that road, kick out the Chinese until we are paid”

#iKUWEiKUWE has nevertheless learnt that Wangamati has invited the contractors to a meeting on Tuesday, Dec 7, a meeting Contractors think will bear no positive results to them since the county is expecting the controller of budget’s clearance on the same day.

In April 2021, a report by the County Assembly of Bungoma on the status of the Dual carriage construction indicated that the total contract sum for the project is Kshs. 1,382,442,975.76 with Kshs. 591,495,064 already paid to the contractor while there existed a pending bill of 400million which has already been paid.

Here is an extract from the April 2021 report;

The CR12 indicates ZHONGMEI ENGINEERING GROUP LIMITED directors as follows;

1. Pong Yankum –               Director
2. Dong Lonpei   –               Director
3. Chieng Xiayu   –              Director
4. Patrick Wangalwa Oundo – Local representative

Also read; https://ikuweikuwe.com/2021/04/12/1-4b-dual-carriageway-contractor-self-sabotaging-blames-county-government-and-kplc-for-delays-in-completion-as-construction-is-halted-report/

General Committee Finding / Observations

1. The total contract sum for the project is 1,382,442,975.76. The County Assembly has appropriated a cumulative total of Kshs. 591,495,064 to-date as out lined in Table 1 above. Representing 42.8% of the contract sum. The County Government still need to be allocated a total of Kshs. 790,947,912 in the Financial Year 2021/2022 budget estimates, if the project is to be completed and be operational by the closure of the FY 2020/2021 as indicated in the Contract period. This balance represents 57.2% of the total contract sum.
2. It’s noted from the above data, that the total payments is above the appropriated amount as per the approved budgets. The source of the extra 58,660,400 paid on 10/02/2020 in FY 2019/2020 vide certificate No. 2 is not known. From the information availed by the accounting officer, there was no explanation on which vote head the amount was paid from. The department made a payment out of funds that were not appropriated to the project, contrary to the provisions of section 149 sub-sections (1) and (2 (a)) the Public Finance Management Act, 2012
   1. Out of the 10 Cross Culvert installed at various points on the Dual Carriage Road from Sang’alo Junction to Kanduyi and with exception of the one at Elegant Hotel, The Culverts directs water to the lower side of the Road towards Khalaba River where the extensive drainage requires stone pitching and proper direction of storm water to prevent destruction of newly constructed feeder Roads and private properties.
   2. From the submission of the project manager, there was no indication that the amount advanced on Certificate number one was being recovered. As per Clause 60 (12) of the contract document (BQs), the advance payment shall be recovered with percentage reductions from the monthly interim payment certificates certified by the Project Engineer. This should begin when the amount due to the contractor under the contract amounts to 20% of the original contract sum. Further, it should be completed by the time 80% of the contract sum is attained. Refer Clause 60(12) for the formula to be used.
   3. It was observed that there is a likelihood of the contractor invoking the contract clauses on interest accumulation on delayed payment, as indicated in Clause 60(10) (iii) of the contract document “that the employer shall make payments on the contractor of simple interest at a rate equal to two percentage points above the average bank lending rates obtained from the Central Bank of Kenya.”
   4. The percentage of the amount Certified as per the information from the committee’s fact finding inclusive of the pending certificates of 400 million as captured on Hansard during the interview with the Contractor is at 75.5% Percentage of work done. This does not reflect the actual work on the ground in comparison with the scope of work and time elapsed vis-à-vis completion date.