Kalonzo fights to save dream city project

Police have been asked to speed up investigations into corruption allegations that have threatened to derail the construction of a technology city in Machakos District.

Vice-President Kalonzo Musyoka told the World Bank and other donors that the government would not allow the project to stall.

“We are fighting hard against corruption. Those found stealing government resources will be dealt with accordingly,” he said on Monday in his Mwingi North constituency.

Plans to build the technopolis on a 5,000-acre piece of land have run into graft claims and unfair dealings.

Farmers who sold their land have complained that brokers bought their plots at throwaway prices and then sold them to the government at much higher prices.

They are now threatening to block the project unless they are fully compensated for their land.

Separately, Information permanent secretary Bitange Ndemo cautioned that the project would be relocated if wrangles surrounding the purchase of the land continue. Dr Ndemo said the government might accept a 3,000-acre offer by the Thika Municipal Council for the project.

“We can use the 5,000 acres in Malili as a cattle holding ground,” said the PS who defended the ministry against any impropriety in the purchase of the Sh1 billion land for the technopolis.

The PS said the ministry followed the law in procuring the land for construction of the Sh780 billion ($10 billion) technocity and accused politicians of interfering with the project.

He stated that the ministry did not deal with Gateway Logistics, a firm claiming Sh110 million for sourcing the buyer.

“I will take personal responsibility if there are any irregularities in the transaction,” he said on Monday.

While waiting for the construction of the city expected to start in August, the ministry has rented Sameer Business Park to serve as a temporary ICT park.

Shareholders of Malili Ranch Limited say the government should have dealt with them individually for the purchase of 5,000 acres of their land instead of dealing with the directors.

They last met as a company in 2006 where members voted to sub-divide the land.

The process was completed in 2008 and by the time the government moved in, each shareholder had an allotment letter for his 7.8 acres.

The government’s deal with Malili was arrived at after January, 2009.

Information shows that the firm agreed to sell the land after a general meeting, but the shareholders insist that the last general meeting took place in 2006.

An official from Gateway Logistics who spoke on condition of anonymity citing the sensitivity of the matter maintained that the firm brokered the deal between Malili Ranch and the government.

“The Malili people did not know what was going on at the time but we took them through the processes that saw them secure the deal. We made written agreements with sober minds... it is therefore in bad taste for them to now turn around and question our participation,” he said.

The current storm in Malili is said to have been ignited by Gateway Logistics after it was realised that a company associated with one of the newcomers in the deal was paid Sh107 million.

According to Dr Ndemo, the Kitengela site was suitable because of its environment and location — the ranch is nearly 60 kilometres south of Nairobi.

He said experts from the International Finance Corporation would make presentations on the feasibility study and environmental impact on April 12.

Additional reporting by Richard Munguti and VPPS