The Director of the Public Prosecutor’s Office (DPP) informed the Anti-Corruption Court in Milimani, Nairobi, yesterday that the joint venture CMC Di Ravenna-Itinera (JV) had filed a lawsuit with the Arbitration Court in The Hague to prosecute the payment. < / p>
The company wants the Kenyan government to be forced to pay 80 billion Sh. to pay for the project, the original budget of which was 65 billion Shillings. fraud.
Through the Special Prosecutor Taib Ali Taib, the DPP made the revelations at the beginning of the trial of former State Secretary of the Treasury Henry Rotich, who, along with other government officials, is charged with corruption.
“We’re going to prove to this court that it’s not just the 65 billion shredders the defendants have planned to steal, but the outcry the government has been exposed to is over 80 billion shutters that the Hague contractors are actively involved in Pursue arbitration, “said Mr. Taib.
He continued:” You (contractor)) are trying to collect the money even though there are no dams on the grove and. “
He pointed a finger at Mr. Rotich, former executive director of the Kerio Valley Development Authority (KVDA), David Kimosop, and other government officials accused of conspiracy to loot public funds.
Looted taxpayers’ money
“D he evidence available leaves no doubt that Financial CS has abused its fiduciary and legal responsibilities with the intent of looting taxpayers’ money, resulting in a loss of over 21 billion shutters to date, ”said Mr. Taib.
The Sh21 billion was lost to the Sace insurance policy to secure loans for the dam project.
During his appearance before Chief Justice Lawrence Mugambi, Mr Taib said the cabinet did only approved the construction of only one dam, Arror, and not Kimwarer.
However, Mr Rotich and KVDA officials reportedly added the Kimwarer project and published tenders for both dams in December 2014, which they then award have to the Italian company.
The public prosecutor said the contract was to a “g host” because the company at the time of the award of the billion shillings tender and when the employment agreement was signed sluggishly “did not exist” in April 2017.
“At the time the payment agreements were signed, they gave them the planned billions of schillings, they were not even registered and legally did not exist,” said Mr. Taib.
< p> “CMC Di Ravenna Itinera JV never bought or acquired any tender documents. It has not submitted an offer to build these dams. It wasn’t one of the companies that was on record when the calls for tenders were opened for these two projects, “said Mr. Taib.
” As ridiculous as it sounds, it was not the recipient of the tender letters , but without punishment and corruption, the tender was worth 65 billion Sh. Awarded out of nowhere, “explained Mr. Taib.
The court heard that the original bidder was a company called CMC Di. was Ravenna from Italy and not CMC Di Ravenna Itinera JV.
But during the procurement process a new company, CMC Di Ravenna Itinera JV, was added as a joint venture alongside Aecom South Africa PTY Limited.
“Another company submitted the offer. Another company was qualified by the tendering committee. Another company won the acceptance and the tender. Another company was commissioned to carry out the tenders. The impunity with which the tender process was carried out, as well as the illegal changes and violations of the law, led to the ridiculous result, ”said Mr. Taib and the government and taxpayer fraud conspiracy.
“We will show that despite winning the joint venture, the bidder was referred to as CMC Di Ravenna from Italy without a mention by Aecom South Africa. The approval for the two projects was issued to another new company called CMC Di Ravenna from South Africa, “he said.
The prosecutor added that the former Finance CS acted outside the law and dealt with its. conspired to have co-accused of defrauding the government by using the projects for self-enrichment.
Mr Rotich is accused of having secured the loans without tendering against the interest of the Republic of Kenya at exorbitant interest rates and on terms that were unaffordable.
“We will show how the Secretary of the Finance Cabinet broke the law and secured loans from four private commercial banks in Italy for the KVDA for the construction of the dams, even though he had no legal authority to do so Securing loans for state-owned companies, “the prosecutor said, adding that the funding plans were disguised as government-government agreements.
The prosecutor said the Treasury CS was only authorized to provide loans for the national government who was not involved in this case.
Mr. Taib said the former CS bought and also paid more than 8 billion shutters for insurance spolice, which looked after the interests of the contractor and not the government of Kenya.
The court found that the Italian government neither signed nor negotiated the agreement, nor does any of its entities have the financing agreements in theirs Names signed.
Mr Rotich is also accused of breaking the law by not transferring any of the proceeds from the loan to the Kenyan government’s consolidated fund account.
“The money was without Participation of the Kenyan government paid off by Italy to an account in the UK and later to the Italian contractor without going through the legally required consolidated fund in Kenya, “said Mr Taib.
He continued:” The CS took out the loans without legal approval. To add to the breach, he took it knowing he was breaking the debt ceiling set by parliament. There was no approval of the parliament and he knew that the budget did not exist either with the national government or with the KVDA. ”
In addition, the DPP said that the defendants borrowed more money than for the two projects and this illegally inflated the contract sums.
You allegedly agreed to pay a higher exchange rate, and as a result you lost billions from the exchange rates alone.
You have the emergency amount of 10 per. disbursed percentage of the value of the overall projects in advance if, as the name suggests, this is an amount for contingencies in case additional work is deemed necessary at the end of the project.
The prosecutor further stated that there is sufficient evidence that the contractor cannot move into the site even today, even if he wanted to, as no site had been secured.
The prosecution informed the court that this was for the projects designated land has never been secured by the National Forest Service and by private owners.
“The National Forests Service made it very clear that it should not release any land for the projects, but the Financial CS felt it was reasonable not only to obtain the loans but also to pay them and disbursing over Sh11 billion shillings for a project that was unable to due to the fact that for the locations of the two planned dam projects no country had been secured, ”said the prosecutor. The hearing will continue tomorrow.