This archive report was first published on 6 September 2019.
On September 6, 2019, a major scandal rocked the Kisumu County as Bobasi MP Innocent Obiri and a Chinese contractor, Zhang Jing, were arrested in Nairobi over the Ksh.4 billion Lake Basin mall.
Obiri, who is also the Managing Director of Quantech Consultancy, was identified by the Director of Public Prosecution (DPP) as a key suspect in the scandal.
According to the DPP, Obiri and his accomplices inflated the construction cost of the Lake Basin Development Authority (LBDA) mall by Ksh.1.8 billion.
The LBDA Board Chairman, Onyango Oloo, who is also the Kisumu County Assembly Speaker, is also on the list of suspects.
It has been alleged that there was collusion between some Board members and M/s Erdemann Properties Limited, with the directors bribing the chairman of the Board, George Onyango Oloo, to the tune of Ksh.17 million.
George Omolo Odawa, chairman of an LBDA Board committee, is also on the list for allegedly receiving Ksh. 12 million in kick-backs.
The suspects are facing 11 charges, including conspiracy to defraud, unlawful charging of public property, and corruptly receiving and giving benefits.
