This archive report was first published on 23 July 2019.
On July 22, 2019, Treasury Cabinet Secretary Henry Rotich and Principal Secretary Kamau Thugge presented themselves to the Directorate of Criminal Investigations (DCI) headquarters in Nairobi after Director of Public Prosecutions (DPP) Noordin Haji ordered for their arrest.
The two officials were arrested in connection with the loss of billions of shillings in the Sh63 billion Arror and Kimwarer Dams projects in Elgeyo-Marakwet County.
According to DPP Haji, procurement procedures were flouted and the law bent to ensure bankrupt Italian company CMC di Ravenna was awarded the lucrative tender.
“Upon investigations by the DCI, it was established that the conception, procurement and payment process for the Arror and Kimwarer Dam projects in Elgeyo Marakwet County were riddled with massive illegalities,” said Haji.
“The investigations established that government officials flouted all procurement rules and abused their oath of office to ensure the scheme went through.”
It is alleged that the initial contract signed between KVDA and CMC stated that the two projects would cost a combined Sh46 billion but the Treasury negotiated a commercial facility, increasing the amount to Sh63 billion.
As of January 2019, the government of Kenya had made payments totaling Ksh.19,714,366,991, including advance payment, commitment fee, insurance, and other costs.
The suspects will be charged with conspiracy to defraud, willful failure to comply with applicable procurement procedures, abuse of office, and fraudulent acquisition of public property among others.
