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How Kisumu Speaker Onyango Oloo Was Bribed With Sh17Million to Inflate Mall Tender From 2 to 4Billion




Director of Public Prosecutions (DPP) Noordin Haji has ordered the arrest of Kisumu County Assembly Speaker Onyango Oloo over the Sh4.1 billion tender for the construction of a the Lake Basin multipurpose mall.

Order for the former TNA Secretary General’s arrest comes hours after John Zeyun Yang, one of the officials of a Chinese construction firm – Edermann Property Ltd – and Bobasi MP Innocent Obiri were arrested and detained yesterday evening.

The DPP claims Yang and his co-official Zhang Jing of bribing Oloo with Sh17 million and other benefits “by way of their apartments and shops in housing projects”.

Haji said the Speaker alongside a former chairman of the Finance and Establishment Committee of the LBDA board, George Odawa, were bribed to inflate the cost of the building on the outskirts of Kisumu city from Sh2.5 billion to Sh4.1 billion.

He said the Ethics and Anti-Corruption Commission (EACC) received a complaint on July 28, 2015 that the construction cost for the LBDA mall had been inflated. Oloo was the LBDA board chairman at the time.The DPP also accused Odawa of receiving Sh12 million from Edermann to ensure the contract was varied.

When the mall was under construction, Haji said the LBDA irregularly approved additional scope of works in a meeting held on December 18 and 19, 2015, for additional sum of Sh620 million for construction of a showroom, Tyre center and a three-star hotel.Further, the board allegedly approved a loan of Sh1.3 billion from Cooperative Bank by the contractor, hence enhancing the borrowing to Sh2.5 billion, despite the fact that the contractor had promised to finance 80 per cent of the project.

Consequently, a deed of variation was signed by then LBDA Managing Director Peter Abok and Oloo on February 17, 2015, varying the amount from Sh2.5 billion to Sh3.8 billion without the approval and concurrence of the National Treasury. This, Haji said, constituted a 57 per cent variation against the prescribed 25 per cent under the Public Procurement and Disposal Regulations 2013.

Speaker Onyango Oloo

Haji in a statement to newsrooms also revealed that upon review of the file, he found that whereas three firms submitted their bids after LBDA advertised for the tender, all the firms were found non-responsive.However, instead of rejecting their bids as required by the Public Procurement and Disposal Act 2005, the evaluation committee recommended to the tender committee the award of M/S Erdermann Property Limited (EPL).


Also to be prosecuted are LBDA tender committee members Anthony Kisaka (CEO), Nelson Onyango, (production technologist) and Henry Odindo (quantity surveyor, Quantech), Emmanuel Milikau (architect, Symbion Kenya) and Moses Wekesa (consultant, Symbion Kenya).Others are Fredrick Onyango (Chief Finance Officer), Eng Godfrey Mwangi, (Technical Service and Operation), Albert Omondi, (International Auditor LBDA), Teresia Ochaka (Supplies Officer) and Amelia Otono (Legal Officer).

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