News Column

Directors accused of using building agency as cash cow

January 27, 2014


Sponsors have written to the government demanding investigation of directors of the construction regulator for allegedly turning it into their cash cow. Recent correspondence among the financiers, the Public Service and the Taskforce on Parastatal Reforms indicate that the sponsors are "disappointed" with the way the National Construction Authority has been running its programmes. On January 3, 2013 , World Bank regional director Diarietou Gaye wrote to the chairperson of the taskforce complaining of "mismanagement" at the authority. "We would like to express our disappointment at the newly-formed National Construction Authority in terms of its mismanagement by the directors. We as development partners have encompassed the authority in our funding through various project loan components extended towards the Government of Kenya ," he said. However, the authority denied the accusation. In an interview with the Nation on Friday, the authority's executive director, Mr Daniel Manduku, dismissed the "cash cow" claim, insisting they only charge reasonable fees. "Contractors are registered based on each category from NCA1, which is the highest at Sh100,000, to NCA8, which is for starters. These are one-off fees with an annual renewal payment of Sh2,000," he said. He insisted that there had not been any mismanagement at the agency.

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Source: Nation (Kenya)

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