Court frees GDC chiefs in Sh1.7bn tender case

Seven suspended Geothermal Development Corporation (GDC) managers have obtained court orders stopping their prosecution over alleged irregularities in the award of a Sh1.7 billion tender for rig moving services.

High Court judge George Odunga has ordered the anti-corruption court not to proceed with prosecuting them after finding that their conduct in the disputed tender was legal.

Justice Odunga held that the suspended managers did not contravene the law by failing to consider past pricing of a similar tender when they awarded Bonafide Clearing and Forwarding Limited the lucrative deal.

The suspended GDC managers are Godwin Mwagae Mwawongo (acting CEO), Peter Ayodo Omenda (consultant) and tender committee members Abraham Kipchirchir Saat, Michael Maingi Mbevi, Nicholas Weke, Caleb Mbayi and Bruno Linyiru.

“In the absence of evidence from the police to the contrary, the court found that to expect the applicants to introduce comparison in past prices would clearly have been a violation of the law. For the court to decide to charge a person for not taking an action which would have amounted to a violation of an express provision of the law, is clearly irrational,” Justice Odunga ruled.

READ: Geothermal agency opens search for new chiefs after shake-up

Bonafide Clearing and Forwarding was awarded the deal to move geothermal rigs and other equipment in 40 lots from Mombasa to the Menengai drilling area — each costing Sh42 million — bringing the total cost to Sh1.7 billion.

Justice Odunga had earlier issued a similar order in favour of Praxidis Mbayi, another former GDC tender committee member.

The suspended GDC managers were charged in court in November last year but were released on a cash bail of Sh5 million. They were charged alongside former GDC managing director Silas Simiyu.

Mr Simiyu faces separate additional charges of abuse of office and failing to ensure proper management of public funds.

The EACC in a probe last year recommended that the entire GDC tender committee be held culpable for alleged irregular award of the lucrative deal due to glaring anomalies that exposed taxpayers’ funds to wanton embezzlement.

The committee members are accused of inflating the rig movement charges from Sh15 million to S 42 million per rig, totalling Sh1.7 billion.

The report said the entire tender board should be jointly charged with abuse of office and must be surcharged to refund money lost during the tender award.

The suspended managers are fighting to keep their jobs in a separate suit and have obtained a temporary court order stopping their termination until the court hears and determines their case.