International contracts should be drafted with laws similar to world bank turnkey projects and only awarded to contractors with proven records. The same SHOULD be made to further present RELIABLE performance bonds to ensure that the contracts are fully covered by the insurance.
The performance bond may vary but when it comes to a big project like a dam construction it should be between 10-15 %.
The Kenya Government changed laws to help local contractors to perform better on projects by introducing mobilization fees but the same was misused by cowboy contractors who used to disappear with the money paid without even moving to site.
The law was clear to the effect that the Engineers or architecst issuing payment certificate had to be convinced by the contractor their readiness to commence the work.
Readiness would be in form of taking earth moving equipment to site and commencing work by initially constructing a site office and even depositing materials while still clearing the site.
In every certificate whether releasing mobilization, or actual work, the certificate must always hold 10% (Contingency fee) defects liability amount that is released 6 months after the project is completed.
Murkomen erred by saying that its law to pay mobilization, but the law he is quoting does not say that international bidders should receive money by wire in their country even before taking any equipment to site.
In this case contractors were paid way in advance so that they could bribe those that were facilitating the release of mobilization.
It’s a long process to release money for after the certificates are released the accounting officer start processing vouchers advanced to him/her by the ministry chief accountant.
If you listened to Murkomen arguments, its as if the amount was wired by the Minister himself not even the CS. He was only twisting his listeners who did not seem to be well conversant with project construction process and took advantage of it and was at ease after he noticed their ignorance.
The Government have erred as the amount released should have gone direct to local banks for even those international tenders are given condition to have local banks and insurance performance bonds for huge projects deposited accordingly.
The money have been released already and no work done and to continue the dams, the same contractors might not commence before more money is paid and all it means is that they have to issue variation orders and initial contract may be hiked double.
We should maybe revert to single sourcing where the funding donor are given sole responsibility of handling the project and make it turn-key just like the Chinese are doing the rail project.
The Chinese kickback may be difficult as the Chinese do it differently than the crooked Italians who also had a history of kickbacks if you may recall the Molasses plant saga that may have been the reason why Dr. Robert Ouko was murdered after he questioned the irregularities.
We are now in a dilemma in the two dam cases as it will not be possible to complete the same, with cartons of toilet papers supplied. …This means that, what was supposed to help the country, has caused even more suffering to tax payers who will have to dig further deep into their already empty pockets.
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