The Sankandi-Karantaba Road Project’s management has been the subject of serious concerns in the 2023 Auditor General’s Report, which highlighted issues with contract control, unclear payment distribution, and protracted delays.
The project, which was carried out in two stages, has substantially exceeded its initial budget. The 39-kilometer Phase One project was supposed to be finished in 12 months, but at the time of the audit, it had already taken 46 months. In a similar vein, Phase Two, which covered 48 kilometers, was originally planned to last 16 months but ended up lasting 43.
Both contracts have a combined value of D1,207,600,882.15. The Auditor General indicates that the extended delays run the risk of driving up expenses and jeopardizing the National Roads Authority’s (NRA) financial performance.
According to the audit report, the extended delays in finishing both road projects raised concerns regarding contract management efficiency, value for money, and project oversight.
Management responded by attributing the delays to a mix of logistical and operational issues.
The project was supposed to be finished on December 30, 2023, which would have been the 28th month of construction and oversight. However, the management response noted that a number of factors contributed to the delays, such as: delayed payment of IPCs; delayed verification of quarries for laterite extraction; inadequate earthmoving equipment on site; delayed deployment of concrete teams for structural and drainage works; lack of bitumen supply; lack of basalt and cement during various construction stages; and disruptions caused by the rainy season.
Regarding finances, the study noted that the project consultant had authorized a large number of interim payment certificates that the contractor, GAI Enterprises, had submitted. However, because the documentation did not explicitly divide or apportion the sums, auditors were unable to ascertain whether these payments were related to Phase One or Phase Two.
However, because the documentation did not explicitly distinguish or allocate the amounts to a specific phase of the project, the audit was unable to ascertain with certainty which phase (Phase 1 or Phase 2) the approved payments related to.
Payments totaling D501.1 million, including D67.8 million, D80 million, D107 million, D106.9 million, D60.8 million, and D78.4 million, were among the authorized certificates.
According to the study, the NRA administration should provide complete documentation of the interim payment certificates and balance all disbursements between the two stages. Additionally, it demanded that management provide an explanation for the project’s significant delays in spite of its original December 30, 2023, completion date.
