Probe on Balala bribe claim launched

The national anti-graft agency has launched an investigation into allegations that Mining cabinet secretary Najib Balala solicited for a Sh80 million bribe from Cortec Mining Kenya in exchange for a mining licence.

Speaking in a telephone interview to the Nation, Ethics and Anti-Corruption Commission vice chairperson Irene Keino on Monday confirmed receipt of a letter levelling corruption allegations against Mr Balala saying investigation could be concluded in two weeks.

“We are in receipt of the letter from Cortec Mining Kenya accusing Mr Balala of demanding the bribe and we have commenced preliminary investigations. The process before any recommendations are made could take less than two weeks, depending on the evidence at hand,” said Ms Keino.

The inquiry began as Mr Balala, who has dismissed the accusations, named a seven-member taskforce to review all the mining licences and agreements issued by the Mines and Geological Department from 2003 to date.

Correct procedures

Headed by lawyer Mohammed Nyaoga, the team is required to establish whether correct procedures were followed before prospecting, exploration and mining licences were issued.

On Friday, Cortec Mining Kenya, through its country director for Kenya Jacob Juma, said Mr Balala unsuccessfully solicited for the Sh80 million bribe leading to the revocation of its licence together with 42 others. Industry players are now raising concerns that the issue could result in court battles which may cripple mining activities and subsequently deny the country economic benefits from the sector.

Cortec has vowed to challenge the revocation of its licence at the Kenyan court, the International Chamber of Commerce based in Paris, France and the Dispute Resolution Tribunal of the United Kingdom where one of its holding companies is registered.

Cortec was licensed in 2007 to explore minerals in the Mrima Hills in Kwale. In March this year, the company’s mineral exploration licence was validated by former commissioner of mines Moses Masibo, transforming it into a special mining licence which was revoked by Mr Balala more than a week ago.

Mr Balala has since suspended Mr Masibo accusing him of presiding over irregular issuance of mining licences.

Recently, Cortec announced that Mrima Hills contain rare earth and niobium deposits worth more than $100 billion.

The announcement made the Pacific Wildcat Resources share gain 20 per cent at the Toronto Stock Exchange, but it shed nearly 60 per cent of its value after Cortec’s mining licence was cancelled. Cortec Mining Kenya is owned by Pacific Wildcat Resources and Sterling Securities of the UK at 70 and 30 per cent shareholding respectively.