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Kenyan Digest

Rotich grilled over dam scandal for record time

2 min read
Published 5 March 2019

Treasury CS Henry Rotich was yesterday questioned for a second time over the multi-billion dams scandal.

Rotich, who was accompanied by a lawyer, was pressed to provide details of the Arror and Kimwarer dams saga, which is currently under investigations by the Serious Crime Unit.

The CS had earlier been questioned by the investigators over the same matter.

Yesterday , Rotichis reported to have arrived at the DCI headquarters, Kiambu Road, at 6.30am and was yet to leave the building by 4pm.

Sources at DCI said the CS was required to provide further details on the two projects. Officials from the Director of Public prosecution who are helping in the investigations, raised issues which the investigators were required to question the CS.

The investigators further pressed the CS on issues relating to payments to companies involved in the construction and insurance of the two projects.

Sources said Rotich, owing to the executive nature of his position, was required to answer to all queries related to the financing the project.

Treasury PS , Kamau Thugge, who is the accounting officer in the ministry, has also recorded statements with the police.

Rotich last week said advance payment made to the contractor of the two dams was done within the law.

In a paid up advertisement, Rotich said media reports that Sh28 billion had been misappropriated were misleading and damaging to government's image.

"We would like to stress that all projects whether domestic or externally funded are implemented in strict adherence to the law and in accordance with the commercial and financing agreements," he said.

"In this particular case, if there were any breaches, the ongoing investigations will capture that."

He said the law had been followed and that , the Public Procurement and Disposal Act 2015, the contractor of the projects; Service Assicurativi Del Comercio Estero (SACE) of Italy was entitled to 15 per cent advance payment.

He stated that Treasury had approved payment of Sh4.3 billion for Arror dam as advance payment under the Facility Agreement and the Commercial contract signed between the Kerio Valley Development Authority and SACE,

The advance payment was meant to facilitate the contractor to move to the site and start a project implementation.

The money was part of the loan facility advanced by SACE and not from the exchequer.

The DCI has summoned 107 companies, including 27 directors, to record statements overpayments they received concerning the two projects in Elgeyo Marakwet county.