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
"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
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.
Kenya Treasury chief Henry
Rotich pleads 'Not Guilty' to graft charges
NAIROBI (Xinhua) --
Kenya’s cabinet secretary for Treasury Henry
Rotich on Tuesday pleaded not guilty to corruption charges after
being arrested over a 65 billion shillings (650 million U.S.
dollars) project to build two dams.
Rotich, who appeared before Nairobi Magistrate Douglas Ogoti
alongside two principal secretaries Kamau Thugge of the Treasury
and Susan Jemtai Koech of the East African Community, was
charged with several counts including conspiracy to defraud the
public, willful neglect to perform official duty, failure to
comply with guidelines relating to procurement of insurance
policy through single sourcing, committing an offence of
financial misconduct and abuse of office among others.
The two Treasury officials were among 28 individuals
implicated in the two dams scandal.
Rotich and Thugge were released on a bond of 500,000 dollars
or 150,000 dollars cash bail after being charged over Arror and
Kimwarer dams scandal.
Koech was released on 60,000 dollars bail with an option of
300,000 dollars bond.
In his ruling, the magistrate barred Rotich and his
co-accused from accessing their work places which he termed as
scenes of crime.
The magistrate warned the suspects against tampering with
evidence in any form or approaching witnesses in the case.
The arrest on Monday of Rotoch marked the first time a
sitting minister of finance held on corruption charges.
Noordin Haji, Director of Public Prosecution, said Rotich,
Thugge and 25 other government officials were mandated to
safeguard public interest since they flouted many procurement
rules and circumvented to ensure Italian firm CMC di Ravenna got