NAIROBI, Kenya Apr 23 – The Public Accounts Committee (PAC) has raised fresh concerns over what it terms as a growing and costly trend of financial mismanagement within government projects, warning that millions of shillings in taxpayers’ money continue to be lost through avoidable interest penalties triggered by delayed payments.The issue came into sharp focus during a committee session chaired by Butere MP Tindi Mwale, as lawmakers interrogated the 2023/2024 report of the Office of the Auditor-General on the financial accounts of the State Department for Irrigation.Appearing before the committee, Principal Secretary Ephantus Kimotho, accompanied by senior ministry officials, was pressed to respond to audit queries highlighting financial irregularities tied to stalled or delayed payments in ongoing infrastructure projects.At the centre of the concerns is the Thiba Dam project, where the Auditor-General flagged a payment of Sh42.12 million made to a contractor as accrued interest penalties resulting from delayed settlement of dues. The report paints a picture of systemic inefficiencies, noting that the additional costs were entirely avoidable.“The costs were avoidable and were attributed to delay in honoring payments when due by the project. In the circumstances, value for money amounting to KSh43,122,375 could not be confirmed,” the audit report states in part, raising questions over prudence and accountability in the management of public resources.PS Kimotho acknowledged the Auditor-General’s findings, admitting that the delays were largely a consequence of underfunding within the project’s budgetary framework. He explained that constrained exchequer releases disrupted payment schedules, inadvertently exposing the government to contractual penalties.However, the explanation did little to quell the concerns of committee members, who expressed frustration over what they described as a persistent pattern of financial leakage across government projects.Mathioya MP Edwin Mugo warned on the long-term implications of such practices, suggesting that the cumulative burden of interest and penalty payments could be far greater than publicly acknowledged.“The amount of money that this country has to pay for penalties is even more than the principal amount of some specific projects. If a calculation is done on how much interest and penalties have been paid in this country, I am very sure it could hit a trillion shillings,” he observed.His sentiments were echoed by Committee Chairperson Mwale, who pointed to delays in disbursement of funds by the National Treasury as a recurring bottleneck affecting multiple ministries and state departments. He highlighted the need for urgent, coordinated interventions to address the inefficiencies.“This is an issue that needs to be looked at critically. As a watchdog committee, we are ready to engage the Treasury to address the issue and prevent further losses of public funds,” said Mwale.