Economy

Ex-CS Rotich charged afresh in Sh63 billion Kimwarer scam

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Ex-Treasury CS Henry Rotich. FILE PHOTO | NMG

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Summary

  • Former Treasury CS Henry Rotich was Wednesday charged afresh over the Sh63 billion Arror and Kimwarer dams scandal after the prosecution dropped former PSs Kamau Thugge.
  • The prosecution also dropped from the case 18 Italians who own the companies that benefitted from the tender and intends to charge them separately.

Former Treasury CS Henry Rotich was Wednesday charged afresh over the Sh63 billion Arror and Kimwarer dams scandal after the prosecution dropped former PSs Kamau Thugge and Susan Koech from the case.

Mr Rotich was charged together with former Kerio Valley Development Authority managing director David Kimosop, Kennedy Nyakundi (chief economist Treasury), Jackson Njau Kinyanjui (director of resource mobilisation - Treasury) and Titus Muriithi, the inspector general of state corporations.

The prosecution also dropped from the case 18 Italians who own the companies that benefitted from the tender and intends to charge them separately.

Mr Rotich denied more than 20 counts including abuse of office, conspiracy to defraud, willful failure to comply with the law relating to procurement and engaging in a project without prior planning.

In the first count, the court heard that Mr Rotich, Mr Kimosop, Mr Nyakundi and Mr Kinyanjui and Mr Titus Muriithi conspired to defraud the government of $ 501,829,769 by entering into the construction of the two dams in Elgeyo Marakwet County, yet the project had not been approved.

They allegedly committed the offence between December 17, 2014 and January 31, 2019 by improperly securing a commercial loan under the guise that it was a government to government agreement and in the process made the government of Kenya liable as a financier and borrower.

They are also accused of single sourcing an insurance policy and caused the government to lose Euros 42,088,198 (Sh5.56 billion at the current exchange rates).

Mr Rotich was further acussed of using his office as a cabinet secretary to confer contractual rights and benefits to CMC I Ravenna-Itinera joint venture against the government and unlawfully executing a facilities agreement.

Mr Muriithi, the inspector general of state corporations, was accused of giving a misleading report on the two dams to the CS East Africa Community and Regional Development, where KVDA falls under, causing losses to the government.

The trial of the suspects has been delayed since July 2019 because the police are yet to arrest the officials of the Italians companies that were involved in the projects.