Rotich asks MPs to okay Sh3.5 billion Kimwarer Dam payout

Treasury Secretary Henry Rotich has asked Parliament to regularise Sh3.5 billion payments made to the contractor of the controversial Kimwarer Dam project, which is the subject of ongoing investigations by the Directorate of Criminal Investigations (DCI).

The request for MPs’ approval of the expenditure comes two months after the controversial payment was made, as part of the Treasury’s Sh95.8 billion supplementary currently under Parliament’s scrutiny.

The DCI is investigating circumstances in which Sh21 billion was paid to an insolvent Italian company, CMC di Ravena, for construction of the Kimwarer and Arror dam projects in Elgeyo Marakwet County.

The Treasury released the cash as advance payments for the dam projects that are yet to start.

The fees were largely paid out as part of the conditions that were to be met before commencement of construction.

The money is said to have been wired to Italy before being transferred to England and back to Kenya where it was withdrawn and distributed to local individuals and companies.

Detectives investigating the dam payments have already quizzed four Cabinet Secretaries, including Mr Rotich. Others who have grilled are Mwangi Kiunjuri (Agriculture), Eugene Wamalwa (Devolution) and Peter Munya (Trade, Industry and East Africa).

Mr Rotich is also accused of writing to the National Land Commission asking officials to deal with land allocation issues to enable Kerio Valley Development Authority (KVDA) to resettle residents displaced by the projects.

KVDA, which contracted Italian companies CMC di Ravenna and Itinera for the projects, is under investigation over alleged payment of kickbacks to officials to influence award of the Kimwarer and Arror tenders.

Mr Rotich, KVDA Managing Director David Kimosop and several board members of the State corporation were questioned four times by the DCI on the controversial dam payments.

The Kimwarer and Arror probe also sucked in Deputy President William Ruto who claimed that only Sh7 billion had been paid out.

Mr Rotich said that up to Sh19.8 billion had been paid to different firms in the two projects on various dates by the end of last year.

The two projects are yet to kick off since 2017 when the money was paid.

“The Treasury is seeking reallocation of Sh3.486 billion relating to Kimwarer dam that was allegedly captured wrongly in the budget. But it is not clear where the said money was captured in the budget. It is important to note that this matter is under investigation by the DCI,” the Parliamentary Budget Office (PBO), which advises MPs on fiscal matters, told the Budget and Appropriations Committee chaired by Kikuyu MP Kimani Ichung’wa.

Mr Rotich has presented to Parliament a Sh95.8 billion budget for approval under the Supplementary Budget II.

The mini-budget seeks to regularise payment of pending bills arising from the standard gauge railway (SGR) and the Lake Turkana Wind Power Project for deemed generated electricity among others. The law allows the Treasury to spend money for unforeseen expenditure and seek the House’s approval within two months of such expenditure.

The PBO told MPs that the Treasury had spent part of the money contained in the supplementary budget more than five months ago. Out of the Sh95.8 billion, Sh5.69 billion has been allocated to recurrent expenditure while Sh90.1 billion will go towards development projects.