Jan 27, 2022

Mawazo Writing Africa

Writing about the main

MPs probe Sh780m overpayment to Lake Turkana Wind Power

MPs have questioned an overpayment of 789 million shutters in 2020 to Lake Turkana Wind Power for energy not consumed by taxpayers.

The payment followed delays in the construction of the Transfer station to get the electricity from the 40,000. to evacuate -Acre Loyalangalani wind farm in Marsabit district.

While the investor’s claims amounted to 39,023,703 euros (4.9 billion Sh. in 2021), the government paid 45,197,003 euros (5 , 7 billion Sh. In 2021). Exceeding € 6,173,296 (SH 789 million in 2021).

The National Assembly’s Public Investment Committee opened an investigation on Wednesday into why it took the company a long time to refund the money .

MPs also raised concerns that the money may incur interest which they believe could benefit government officials in the energy sector.

Legislators said it was inexplicable that Lake Turkana Wind Power did not transfer the money, despite details about it. received the account to transfer the money.

PIC Chairman Abdulswamad Nassir asked why it took the Department of Energy and KPLC a year to release details of the account on Lake Turkana Wind Power should transfer the money.

“Is there a person in the Department of Energy or in Kenya Power who has done this? don’t want the money paid and why? Was the money in your account or in your company? “Nassir asked.

” Why can’t you refund the money to the same bank account that you received it from? It doesn’t matter whether it is KPLC or the government, “said Omar Mohamed, MP for Mandera East.

When they appeared before the committee, LTWP CEO Phylip Leferink and adviser Rizwan Fazal said it was the government making the delivery the bank details for the transaction.

The LTWP managers said they were ready to repay the money, but only received the account details a month ago.

“We were uncomfortable with the transfer Money to Kenya Power, but wanted to deposit the money in the Consolidated Fund’s accounts at the central bank, “said Fazal.

He said that LTWP had informed the government of the surplus and requested that the bank details, which only became known on November 8th.

Fazal said: “At the time of the refund KPLC requested the money, but we asked for bank details to send money to the consolidated fund. “

The PIC is reviewing a special audit report asking how the Department of Energy is offering exclusive rights to the private investor Assess the project area prior to the lease.

“The special audit found that the ministry had not carried out any illegal tenders to identify the private investor,” reads the audit report by Deputy General Auditor Fredrick Odhiambo.

The PIC chairman said the committee would invite the Kenyan Department of Energy and Energy to shed more light on the issues.

MPs are also investigating whether there have been any conflicts of interest among government officials with the Project related.

The name of the former CEO of Vision 2030, Mugo Kibati, was also included in the investigation into the role he played in the handover of the Multim Billions of shillings in the company’s bidding have been played.

Documents the committee is considering indicate that Kibati is the company’s chief executive officer. He was Director General of the Secretariat of Vision 2030 from 2009 to 2013.

MEPs are trying to find out whether there was a conflict of interest on his part, as there is suspicion that LTWP was also included as Vision 2030 flagship project.

But Fazal said: “Kibati was not the chairman at the beginning of the project. He was named chairman in 2014 after leaving Vision 2030. He has no holdings. He is a non-executive chairman. ”

MEPs also questioned the basis for government payments as there were no invoices to support the contractor’s claims.

Tinderet MP Julius Melly said, “There isn’t a company where someone pays you on a contract. You have to issue an invoice. Submit the government bills to the committee. ”

Wajir East MP Rashid Amin said,“ All payments were made for services and electricity that were not supplied. ”

But Fazal said the contractual agreement stipulated that the state should pay for the energy that was produced.

It also asks why the company has changed hands almost four times and who the original shareholders were and Who signed the lease with Marsabit County Council.

The company was initially called 580, then moved to Abraasa and then to Turkana Wind Power.

(Edited by Bilha Makokha)