In what is turning out to be one of the high-level choreographed corporate-like graft transcending in at least three jurisdictions, a multi-pronged probe has unearthed 107 local and international companies aided the looting of Sh63billion meant for construction of Arror and Kimwarer multipurpose damns in Kerio Valley.
Today, all the directors are expected to appear at the Directorate of Criminal Investigations to proof why they were paid millions of money in what circumstantial evidence points to possible case of money laundering in Italy, London in United Kingdom and Nairobi.
Sh6.3billion was paid out by the National Treasury was completely embezzled and a loan advanced to Italian contractor by an Italian bank was withdrawn in London and wired back to Kenya with the wanted companies as primary or secondary beneficiaries.
Top government officials including National Treasury Cabinet Secretary Henry Rotich and Kerio Valley Development Authority Managing Director David Kimosop have been heavily indicted in an intelligence dossier on why money were wired in collusion with private companies.
So telling is the manner in which the cash, some obtained as repayable loan by now bankrupt declared Italian company were wired to different accounts and diverted to other use letters of award as sub-contractors, quotations, invoices or any other relevant documentation to justify the payments.
The companies which preliminary intelligence report shows benefited had no contractual obligations to warrant or justify the payments.
“You are compelled to report to DCI headquarters Kiambu Road at 9am on the 26th February to the Director of Investigation Bureau. Failure to comply with the requisition constitutes an offence liable to prosecution.” Director of Criminal Investigations George Kinoti ordered.
The dams were purposed for production of hydro-electric power and irrigation to mitigate effects of drought and make addition to the power national grid.
“The under-listed companies and their directors are believed to be connected with or have information which will assist in ongoing investigations into fraudulent construction of both Arror and Kimwarer multipurpose dams valued at Sh63billion, whose construction was to commence since December 2017 within Elgeyo Marakwet County.” Kinoti said.
According to investigations report, at least Sh40billion has been embezzled including another Sh6.3billion mobilisation fund released by the National Treasury.
According to records at KVDA, Arror dam was set to cost Sh38.5 billion while Kimwarer dam in Keiyo South budgeted for Sh28 billion.
However, a recent aerial inspection revealed nothing has kicked off on the ground despite the allocation being made and almost 75 per cent of the monies released.
The report shows the mobilisation money was released in 2017 by Rotich meant to compensate families although no land had been acquired.
The elaborate fraudulent dealings were orchestrated through an Italian contractor, CMC di Ravena and Itenera of Italy.
Some were allegedly paid for supply of construction material, consultancy services, hotel services, transport services, construction and excavation works.
Some of the companies sited are Silent Night (Kenya) Ltd, Red Court Hotel Company Ltd Guarantee, Azimath Company Ltd, Infinity Furniture Ltd, Charleston Travel Ltd, Charleston Travel and Tours Mombasa Ltd, Oshwal Wholesalers (Kenya) Ltd.
Others are Highlands Valuers Ltd, Amin Automobile Supplies, Steel Structures Ltd, Adrian-Tricom Kenya Ltd, Jupiter Real Ltd, Thermoteq Industries Limited, Thermoteq Prefab Houses Limited, Reliance Hotels Limited, Morgan Dynamics Limited, Heritage Insurance Agency and Mauru Container Limited.
Directors of other profiled firms ordered to surrender today morning are: Longrock Limited, Longrock Insurance Agent, Longrock Investments Limited, Longrock Tours and Travel Limited, Longrock Investments Limited and Longrock Logistics and Freight Limited believed to be co-owned by the same directors.
Kentainers (Kenya) Limited, Mwamba Simba General Merchants, Com Twenty One Limited, Precious Memories International and School Depot Kenya Limited have been profiled as entities of interests in the scam.
Some senior former commissioners at the National land Commission (NLC) are implicated as being complicit for allegedly claiming to acquire 8000 acres of land for the construction of two dams.
400 hectares of forestland was to be acquired from the Kenya Forest Service (KFS) in exchange for 570 hectares of private land.
If actualised, construction of the two dams would have seen addition of 60 MW of electricity to the national grid.
The groundbreaking ceremony was set for September last year and the already declared bankrupt contractor flew in 17 engineers from Europe for ground work.
By yesterday evening, Kinoti had assembled teams of detectives to interrogate wanted directors including their immediate arrest should they fail to heed to the summons.