MPs want Kamau prosecuted over duty free shops deal
Former Transport CS Michael Kamau at Milimani Law Courts in October. PHOTO | FILE
Parliament wants sacked Transport secretary Michael Kamau held individually responsible for exposing taxpayers to a liability of Sh17.15 billion in the award of the duty-free shops contract at the Jomo Kenyatta International Airport.
The contract for duty free shops lease was awarded to World Duty Free Limited, a company associated with controversial businessman and Goldenberg scandal architect Kamlesh Pattni.
The National Assembly’s Public Investments Committee also wants sacked Kenya Airports Authority managing director Lucy Mbugua investigated by the Ethics and Anti-Corruption Commission (EACC) for her role in the award of the duty free shops contract.
“The suspended CS, Ministry of Transport and Infrastructure should be held individually responsible for his failure to follow through and ensure that a deed of settlements is entered between KAA and Word Duty Free/ Dufry Duty Free (WDF/DDF) to protect public interest.
“This failure has exposed KAA and the Kenya taxpayer to a contingent liability of not less than Sh17.15 billion,” PIC, chaired by Eldas MP Adan Keynan, says in a report to the House. PIC also recommends that Mr Stephen Gichuki, a former KAA chief executive, should be held criminally or civilly liable for abuse of office by executing the forceful eviction of WDF/DDF from JKIA without taking due consideration of the legal and financial implication of the action on KAA and the businesses operating at the duty free shops.
“Through his action, the Kenya public stands to lose not less than Sh7 billion which WDF/DDF is claiming for loss incurred during forceful eviction,” the committee said.
The MPs proposed that KAA should appoint joint assessors to evaluate the actual losses incurred if any by WDF and DDF arising from the 2013 forceful eviction by KAA.
“This is to determine the credibility of the sums of Sh7 billion being claimed by WDF/DDF on the matter,” the report says.
The committee, which investigated the award of the duty free shops, said EACC should probe Ms Mbugua, Mr Victor Arika and all other present and past officials of KAA involved in the designing and subsequent signing of flawed contract agreements between KAA and duty free shops operators at JKIA and Moi International Airport Mombasa.
“The committee also recommends that the EACC investigates the allocation of duty free shops spaces at Terminal 1A to Maya Duty Free Ltd, and any duty free operators at T1A, which seems to have been undertaken in total disregard of procurement laws and procedures,” the report says.
PIC wants the Attorney General Prof Githu Muigai to take over as a matter of national interest all the KAA duty free cases that were being handled by external legal teams and ensure that a Deed Settlement Agreement between KAA and WDF/DDF is quickly concluded in an amicable manner to protect public interest.
“We recommend that KAA in consultation with the Attorney General works towards amicably finalizing the matter of Arbitral Award of Sh4.3 billion granted to World Duty Free Ltd in regard to HCCC 413 of 2008,” the MPs said.
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