The Public Accounts Committee (PAC) has been told that the Ministry of Defense signed contracts for amounts above the actual funds received for various projects. This has resulted in unbudgeted expenditure of Kshs 1,429,858,357.00.

The Principal Secretary for Defense Principal, Hon. Patrick Mariru, appeared before the Hon. John Mbadi-led Committee, was asked to explain why the Ministry engaged in implementation of costly projects that had not been budgeted for.

The Auditor's reports tabled before the Committee indicated that the Ministry incurred unbudgeted costs of over  Kshs. 424 million on construction of Level Five hospital for the State Department for correctional Services.

"The contract cost of the project was Kshs. 824,928,279.00 but they received only Kshs.400 million", the report reads in part.

The report further added that the Ministry incurred Kshs 599,628,135.00 on setting up another Level Five hospital for National Police Service.

The Committee was informed that the Ministry also incurred a total of Kshs.405,301,943.00 for rehabilitating Uhuru and Central Park projects on behalf of the defunct Nairobi Metropolitan.

"You are aware that it is illegal to engage in any project or development deals without a budget. Why did the Ministry violate such simple financial regulation," asked Hon Mbadi.

In his response the PS told the Committee that the Ministries that did the work failed to remit the contractual amount in full, leading to overstretching the budget.

"The Ministries that owe us have requested for additional money from the National Treasury to pay," he added.

The PS told the Committee that the process of handing over the three projects to mother Ministries has commenced.