Now EACC probes Geothermal tender
What you need to know:
- GDC chairman Simon Gicharu could neither confirm nor deny reports that GDC was operating on a monthly overdraft of Sh850 million
The anti-corruption commission has started investigations into claims of irregular procurement at the Geothermal Development Company.
Ethics and Anti-Corruption Commission chairman Mumo Matemu confirmed to the Nation on Wednesday that detectives have been sent to investigate the parastatal.
FROM HOT SPRINGS
The commission’s involvement is the latest twist in a saga that erupted in GDC and has now embroiled Parliament and the Judiciary.
The Public Investments Committee is investigating the procurement of equipment for the generation of power from hot springs.
“Depending on the evidence, we will prosecute those involved with economic crimes,” Mr Matemu said, adding. “At the moment, we cannot tell who is to be prosecuted.”
GDC chairman Simon Gicharu said he was not aware of the EACC investigations. “I have no comment. I am not part of it. As you are aware I am still new in the organisation,” he said.
Mr Gicharu said he was only aware of a case in court in which the board had been cited as one of the respondents.
The chairman could also neither confirm nor deny reports that GDC was operating on a monthly overdraft of Sh850 million.
He referred the Nation to the company’s chief executive.
“The board is not involved in execution or daily operations,” Mr Gicharu said.
It is illegal for a parastatal that is fully funded by the government to have an overdraft as it means it would be spending much more than the approved budget.
GDC director Silas Simiyu could not be reached for comment as his phone went unanswered.
Dr Simiyu has been sued by a lobby group for failing to secure the board’s approval before awarding a tender to the Sichuan Honghua Petroleum Equipment Limited.
UNCONSTITUTIONAL
The Kenyans for Honest Governance Citizens lobby wants to stop payment for the equipment worth Sh1,9 billion on grounds that the agreement was unconstitutional.
Dr Simiyu told Parliament that the African Development Bank, which was funding the project and approved the limited international bidding used in the procurement process, concurred with the decision to give the contract to the firm.
