Kenya’s Finance Minister, 2 Others Arrested Over $450 Million Contract Deal

Kenyan Police has arrested Henry Rotich, Kenya’s Finance Minister and two other treasury officials have been arrested on corruption and fraud charges over a multi-million dollar project to build two mega-dams.
The Director of Public Prosecutions, Noordin Haji, had ordered the arrest and prosecution of Rotich and 27 other top government officials for allegations bordering on fraud, abuse of office and financial misconduct.
“They are in custody now awaiting to be taken to court. We are looking for (the) others and they will all go to court,” police chief George Kinoti told AFP.
Haji said the conception, procurement and payment processes for the dam project — part of a bid to improve water supply in the drought-prone country — was “riddled with irregularities”.
“Investigations established that government officials flouted all procurement rules and abused their oath of office to ensure the scheme went through,” said Haji.
He pointed to the awarding of the contract to Italian firm CMC di Ravenna in a manner that he said flouted proper procurement procedures, and despite financial woes that forced the company into liquidation and had led to it failing completely three other mega-dam projects.
According to the contract, the project was to cost a total of $450 million (401 million euros), but the treasury had increased this amount by $164 million “without regard to performance or works,” said Haji.
Some $180 million has already been paid out, with little construction to show for it.
Another $6 million was paid out for the resettlement of people living in areas that would be affected by the project, but there is no evidence of land being acquired for this, the chief prosecutor said.
“I am satisfied that economic crimes were committed and I have therefore approved their arrests and prosecutions,” said Haji.
‘Well-choreographed scheme’
“The persons we are charging today were mandated with safeguarding our public interest and deliberately breached this trust.
“Under the guise of carrying out legitimate commercial transactions, colossal amounts were unjustifiably and illegally paid out through a well-choreographed scheme by government officers in collusion with private individuals and institutions.”
Rotich has previously denied any wrongdoing in the scandal.