House team approves Sh2.8bn for navy ship

A Parliamentary committee has approved Sh2.8 billion as payment for a navy ship that was part of the 18 Anglo leasing-type deals stopped seven years ago over corruption.

Parliament’s Defence and Foreign Relations Committee said payments for the ship, whose full cost is Sh3.6 billion (34 million euros), had to be given priority so that it is delivered on July 2 this year, just one day after the beginning of the financial year.

This makes it one of the first payments that will be made in the 2012/2013 financial year.

The maths in the committee report, however, does not seem to add up.

In the supplementary budget, the Treasury dished out Sh1.2 billion (10.2 million euros). But curiously, the balance for the ship still remains Sh2.8 billion (26.2 million euros) even after the supplementary allocations.

In what is a detailed report on other items, the rationale for the difference of Sh331 million in the scheduled payments has been left out.

In the report to the House, the MPs noted that the Ministry of Defence had already “agreed on the payment terms and the delivery schedule for the naval vessel.”

The report tabled in the House and which will inform the approval of the next national budget, rekindles memories of a May 2, 2007 debate in which the same committee –though with different members- told the House after a visit to Spain that the ship’s cost is Sh3.9 billion.

Then committee chairman, Mr G.G. Kariuki, told the House that the ship was “98 per cent ready” and that because Sh1.6 billion had already been paid, the ship would be ready as soon as the balance was cleared.

“All that is remaining and expected by the builder of this ship… is for the officers to be chosen to go for training,” Mr Kariuki said five years ago.

“…the Committee is convinced that the Oceanographic Survey Vessel is still urgently needed by the Kenya Navy. ,” he added.

The matter has been on ice since then.

Election cycle

The obvious coincidence that the payments get to the floor of the House every five years, just when the elections are around the corner, fuels the speculation that surrounded the controversial contract, especially the said links to well-connected individuals in the current regime.

As it approved the payments, the House Committee got even with the National Security Intelligence Service as it slashed the budget of the crucial body by Sh2.8 billion.

The cash was allocated to other ministries. MPs have had a rocky relationship with the agency’s director Michael Gichangi after he snubbed their summons.

Alphonce Shiundu, Njeri Rugene and Caroline Wafula