Homa Bay losing billions to shady investors, claims MP

An MP has raised questions over the increasing number of failed multi-billion projects in Homa Bay County.

Kasipul MP Oyugi Magwanga has urged Governor Cyprian Awiti to be cautious about prospective investors seeking to set up projects in the county.

An ambitious Sh500 billion Agricity project by an American investor and a Sh3.3 billion road construction plan are among dozens of failed projects that are raising eyebrows.

The Agricity project, which would have seen the construction of roads and low-cost housing units collapsed after the investor went underground.

The MP also complained about the emerging of millionaires in the county and called on the Ethics and Anti-Corruption Commission to scrutinise officials who fortunes have suddenly changed.

Documents seen by the Nation revealed how another American investor disappeared after the county government paid Sh110 million as deposit for the construction of some 204 kilometres road.

Last month, the county assembly adopted a Transport committee report that questioned the motive behind the awarding of the multi-billion deal to a company that lacked the financial capacity.

INSIGNIFICANT TURNOVER

The MCA’s report revealed that the Virginia-based company Oasis Group International, chaired by Mr Amira Ballarin, which was awarded the Sh3.3 billion tender, had an insignificant annual turnover.

“The annual returns for the company is Sh120 million, hence the firm has no capacity to carry out the project,” said the report.

“The tender documents submitted had Oasis Group International on the cover but entailed the details of Berenyi Incorporated, which is a different company,” said the committee chaired by Mr Peter Kaula.

The MCAs also questioned the use of the office of the governor’s letterhead in a tender document presented by the American firm.

The project, which had started on Kadongo-Gendia road stopped shortly after, raising concerns from residents.

But yesterday, the county’s Executive committee member for Transport Eliud Otieno, a top official of the governor’s think-tank, defended the county government against claims of rampant corruption and misuse of funds.

He said that the county would recover the Sh110 million paid to the Americans, arguing that the project was insured.

“Nothing has been lost, we will recover the money because we insured the project. On Agricity project, by the time the investor pulled out, we had not paid a cent. I can confirm this as a member of the cabinet who was involved,” said Mr Otieno.

He denied that the county had paid over Sh200 million and facilitated the investor’s trips to Kenya.

Mr Otieno claimed the American pulled out after detractors scared him that the project had lost public support.