The Ethics and Anti-Corruption Commission questioned senior Lake Basin Development Authority officials over alleged irregularities in the construction of the Sh4.1 billion Lake Basin Mall in Kisumu.
The inquiry ran for a week, beginning on Tuesday and ending on Thursday in 2018, and focused on nine former and current board members. Investigators wanted to know why the project’s cost rose by more than 33 percent, or over Sh1 billion.
Sources at the commission said the contract sum may have been pushed up by “close to or more than Sh2 billion.” Procurement rules limit contract variations to 15 percent of the original value.
The officials were summoned to the EACC Western regional offices in Kisumu through a letter dated November 12, 2018. The letter, received at the LBDA on November 13, named directors Earlie Ngani, Katherine Muoki and Jack Otana among those required to appear.
Others questioned were Patrick Ouya, Steve Mwanga, Nelson Kifworo, William Omondi, William Murunga Jaluo and Abraham Koech.
EACC Western regional boss Ignatius Wekesa said the interviews were meant to help investigators establish what happened during implementation of the project.
“We are at the tail end of investigations. We wanted the officials to give us information that will enable us get the truth about the project works,” said Mr Wekesa.
Investigators were looking at whether the mall delivered value for money, whether public funds were properly used and whether the board approved payments that matched standard rates.
A board member who was questioned said the commission also wanted more information on what led to the “huge variation of the contract sum by more than Sh 1.6 billion.”
The probe came as the ministry responsible for East African Community and Regional Development separately examined the recruitment of the LBDA managing director.
That review followed a complaint by Chris Obel, who wrote to Principal Secretary Susan Koech. An internal memo from Dr Koech to Cabinet Secretary Adan Mohammed dated July 2 called for investigations into the shortlisting process.
The memo, titled “public interest complaint and request for investigation,” was also copied to the ministry’s Chief Administrative Secretary. Dr Koech later confirmed receiving the complaint and said it had been forwarded to the CS for action.
