An Italian firm that was contracted to build the Kimwarer and Arror Dams demands Sh80 billion for the project from the government.
CMC Di Ravenna Itinera Joint Venture has filed a case before arbitration court in The Hague in pursuit of the payment even though the actual work wasn’t done.
Making the revalations, the Director of Public Prosecutions Noordin Haji through special prosecutor Taib Ali Taib told the Anti-Corruption Court in Milimani that the firm wants the government to be compelled to pay the amount even though the initial budget was Sh65 billion.
“Your honour, the contractor is seeking the amount even though no dams exist on the ground,” he said.
He accused former Treasury CS Henry Rotich and his co-accused for conspiring to break the law in the procurement.
Taib said Rotich breached the PFM Act, procurement Act and proceeded with the other accused persons to make possible for looting Sh65 billion and yet Sh80 billion is demanded by the contractor at The Hague.
He told chief magistrate Lawrence Mugambi they will demonstrate to the court how Rotich and his co-accused planned to steal Sh65 billion of public funds.
“The evidence available leaves no doubt that the Finance CS, with the intention of plundering taxpayers’ funds, abused his fiduciary and legal responsibilities, leading to loss of over Sh20 billion to date and counting,” Taib said.
Additionally, the prosecution said that they will demonstrate to the court that CMC never bought or acquired any tender documents nor did it submit any tender bidding papers for the construction of the two dams.
“CMC Di Ravenna Itinera Joint Venture was not one of the companies forming record at the opening of the tenders,” the court was told.
The prosecution also claimed the Cabinet only approved construction of one dam, Arror and not Kimwarer, but the accused went ahead to unlawfully flout the tender for both projects.
Taib also said they will prove to court how the said company was included illegally and with impunity into the project.
He added that the letter of award of the two projects was issued not to CMC Di Ravenna of Italy or Aecom of SA but to a new company known as CM Di Ravenna of South Africa.
Taib said, despite the letter being issued to CMC Di Ravenna SA, the contract documents between KVDA and the directors were not signed.
Instead, they were signed by a new company that never participated in the bidding.
According to Taib, Rotich breached the law and secured loans for KVDA to construct the dams even though he didn’t have the legal authority to secure any loans for state corporations.
Taib said Rotich only had the authority to secure loans for the government but went ahead to do so without any competitive process.
Rotich secured the loans from four Italian banks under two agreements that are known as facilities agreements, which he disguised as government-to-government agreements yet they were not.