Jan 27, 2022

Mawazo Writing Africa

Writing about the main

MPs probe Sh784m overpayment to Lake Turkana Wind Power

Payments for the multi-billion shilling project were made in four installments from June to September last year, but the company’s directors told MPs yesterday that they had waited a year for bank account details to receive the refund Kenya to be transferred to the government.

The MPs suspect, however, agreements with officials of the energy ministry and the Kenyan power, which could collect the interest from the cash, if all the money is still available.

The company that realized the wind farm in Loiyangalani was supposed to receive 39.826 million euros, but received 45 million euros.

“On the calculation date, Lake Turkana Wind Power (LTWP) performed the calculation and found that there was one Overpayment of 6,173,296 euros, which could be returned to the Kenyan government, ”the company said in documents submitted yesterday to the National Assembly’s Public Investment Committee (PIC) yesterday the exchange rate for the euro on the website of the Central Bank of Kenya was Sh127.0753, which means the company received more than Sh784.473.441.

PIC yesterday began investigating the overpayment, citing massive conflicts of interest from government officials linked to the project, which includes 365 wind turbines with an output of 850 kW each and a high-voltage substation.

The committee chaired by Mvita MP Abdulswamad Nassir wants to find out who authorized the overpayments and why the company refused to return the money to Kenya Power a year later.


In a meeting with Lake Turkana Wind Power MPs Phylip Leferink and Rizwan Fazal also raised concerns that the money could amass interest that they believe could benefit government officials in the energy sector.

MPs interviewed d he directors, why they did not transfer the money even though he received details of the account to deposit the ca sh.

Mr. Nassir asked why the Department of Energy and the management of KPLC took a year to to provide details of the account for making the refund.

“Is there someone at the Department of Energy or Kenya Power who refused to pay the money and why? Has it been kept in your account or at your facility? “Asked Mr. Nassir.

He said the committee would summon officials from the Kenyan Ministry of Energy and Energy on the matter.

” Why can’t you return the money to the same bank account as you? received it? It doesn’t matter if it’s KPLC or the government. The money came from the same institution, “said Omar Mohamed, MP for Mandera East.

In their defense, Fazal said they were ready to refund the money, but only received the account details a month ago.

“We did not refuse to repay the excess money that we had but we asked to put the money into the account because we were not comfortable sending the money to Kenya Power. We wanted to put the money into the central bank accounts linked to the consolidated fund, ” said Mr. Fazal.

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Mr Fazal told MPs that when the company found the overpayment, they immediately asked for bank details in order to make the refund to the consolidated fund.

The account details were not revealed until Aug. Deployed November 2021, he added.

“It’s just about four weeks ago LWTP received a letter from KPLC. We decided to pay the government at the central bank, “said Mr. Fazal.

A special audit report from Deputy General Auditor Fredrick Odhiambo found that the lease to Lake Turkana Wind Power was submitted before the company was incorporated.

The report also asked how the Ministry of Energy had granted the private investor exclusive rights to view the project area prior to the lease.

“The special audit found that the Ministry did did not carry out any illegal tenders to identify the private investor, “the report said.

MEPs also questioned the basis for government payments if there were no invoices to support the claim by. The contractor is available.

Tinderet MP Julius Melly said: “There is no company where someone pays you on the basis of a contract. You have to issue an invoice. Submit the government bills to the committee. “

Billion Schilling Tender

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

But Fazal said the contractual agreement stipulated that the government should pay for energy that is deemed to be generated.

During the meeting, the Name of former Vision 2030 CEO Mugo Kibati included in the investigation regarding his role in handing the multibillion shillings tender to the company.

Documents the committee is considering indicate that Mr. Kibati is the company’s chief executive officer.

He was General Manager for Vision 2030 Secretariat from 2009 and 2013.

The MPs are trying to find out if there was a conflict of interest on his part as LTWP was concurrent was included as the lead project of Vision 2030.

“Kibati was not the chairman at the beginning of the project. He was named chairman in 2014 after leaving Vision 2030. He has zero stock ownership. He is a non-executive chairman, “said Fazal.

The company’s directors have been urged to explain how the country will benefit from the US $ 86 billion project commissioned by President Uhuru Kenyatta in 2017 Dollar has benefited.