Auditor-General Nancy Gathungu has faulted the Executive Office of the President over delays in completing Small Claims Courts in Nairobi, despite large sums of public money being used on the projects.

In her latest report for the 2023/2024 financial year, Gathungu noted that the delays in completing courts in Dagoretti, Kasarani, Mihango, and Huruma are directly tied to the Executive Office of the President.

This follows a deed of novation signed on June 29, 2023, between the defunct Nairobi Metropolitan Services (NMS), which was under the Executive Office, and the Judiciary. The agreement transferred the responsibility of constructing the courts to the Judiciary.

“The projects had been initiated under NMS as part of an intervention to expand access to justice within identified low-income areas. However, a review of the Project’s progress revealed a number of issues,” reads the report.

In the case of Mihango, the tender for completing the court was advertised on February 12, 2024, at an estimated cost of Ksh78.4 million. Six bidders responded, but a Tender Evaluation Report dated March 15, 2024, recommended that the process be terminated because none of the bids were responsive. By the time the audit was conducted in October 2024, the procurement had not resumed.

“Physical verification conducted in October 2024, revealed that the project remained stalled at 20% completion level, a stage that was achieved under NMS before the project was transferred to the Judiciary,” the report stated.

In Kasarani, although a contractor had been identified and awarded the tender at Sh73.2 million following a professional opinion issued on March 20, 2024, the site remained stuck at 20 percent progress by October.

“This is a level achieved by the NMS before the project’s transfer to the Judiciary. The contractor was not on-site during the verification, and instances of vandalism on steel reinforcement bars were observed,” the report noted.

Regarding the Huruma court, the report shows the tender process began on July 6, 2023, and the contract was advertised on February 12, 2024, with an estimate of Sh35.7 million.

A contract was later awarded at Sh29.9 million, and some progress was made.

Records show that works had begun and Sh5.4 million had been paid in two certificates. However, the Auditor-General pointed out that delays in the execution prompted a notice of contract termination to be issued on September 25, 2024.

A physical inspection on October 22, 2024, confirmed the work had reached 60 percent, but the contractor had already abandoned the site.

“In the circumstances, delay in completion of the projects may lead to cost escalations and value for money for resources spent may not be obtained,” the report warned.

Aside from construction setbacks, the Auditor-General also raised concerns about the confidential expenditures by the Executive Office and its failure to comply with the one-third salary rule.

The report shows that twenty employees earned net salaries below one-third of their basic salary, breaching Section 19(3) of the Employment Act, 2007 (Revised 2012).

This law caps deductions from an employee’s wages to not more than two-thirds, unless otherwise directed by the minister.

On confidential spending, the office was flagged for transferring funds to a government agency for security operations without proper accountability structures.

The report called for a revision of regulations to clearly define which entities qualify for confidential expenditures, what security operations entail, and how such funds should be managed.

It further urged institutions to develop internal oversight measures including detailed budgets and post-operation financial breakdowns to improve transparency and safeguard public resources.