Kenya's top treasury chiefs to be charged over dams scandal

0 Comment(s)Print E-mail Xinhua, July 22, 2019
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NAIROBI, July 22 (Xinhua) -- Kenya's chief prosecutor on Monday directed the police to arrest and charge Treasury cabinet secretary Henry Rotich and his principal secretary Kamau Thugge over a scandal in dam projects in the country.

Noordin Hajji, Director of Public Prosecution said Rotich, Thugge and 25 other government officials flouted procurement rules and committed illegalities in the Arror and Kimwarer dams scandal.

Haji told a news conference in Nairobi that the persons to be prosecuted flouted many procurement rules and circumvented to ensure Italian firm, CMC di Ravenna got the project.

"The officials who should have pointed this out failed to do so and went ahead to award the contracts to CMC De Ravenna of Italy to run concurrently while aware that the firm was, at the time of award, straining and getting into voluntary liquidation back in Italy," Haji told journalists in Nairobi.

"We also note that the same firm had been awarded three other mega dam projects that are either incomplete or are yet to commence," he added. Rotich has since been arrested.

The chief prosecutor said the offences committed by those implicated include conspiracy to defraud, willful failure to comply with applicable procedures and guidelines relating to procurement and engaging in a project without prior planning.

Haji said whereas the alleged commercial contract signed between Kerio Valley Development Authority and CMC Di Ravenna/Itinera JV clearly states that Kimwarer Dam would cost 204 million U.S. dollars while Arror Dam would cost 252.19 million dollars totaling to 456.21 million dollars, the National Treasury negotiated a commercial facility increasing the amount to about 630 million dollars which is about 170 million dollars more than necessary or required payable on a timely basis without regard to performance or works.

He said the Italian company submitted draft technical designs in February four years behind schedule.

Haji also ordered the arrest of CMC di Ravenna top directors. "We borrowed, the loan had an interest, borrowed more money to pay for the interest, this is massive loss of public finance," he said.

He said the loan for the two dams had matured and that the government was required to start serving it without a project on-site.

"Being cognizant that corruption always fights back and that there may be elements who may seek to exploit these indictments to instigate social unrest we have put in place mechanisms to monitor any such attempts, which will be countered with whole of government response," Haji said.

He said the officials will also be charged with abuse of office, committing an offence of financial misconduct, fraudulent acquisition of public property, knowingly giving a misleading document to Principal and willful neglect to perform official duty.

The authorities started the investigations in December 2018 and because of the complex nature of the case, sought help from foreign countries including the Italian and British governments including state organs to help unravel the scam. Enditem

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