Raila questions Sh28 billion UAE loan

Opposition leader Raila Odinga has questioned a Sh28 billion concessional loan from United Arabs Emirates saying it is meant to “bribe” the country to offer UAE a container terminal contract.

The ODM leader and Nasa co-principal wants President Uhuru Kenyatta to shed more light on the loan.

Speaking during a press briefing on Sunday at Tamarind Hotel in Mombasa, Mr Odinga claimed the loan was signed for the operationalisation of the second container terminal at the port of Mombasa.

Mr Odinga said the money was given on condition that the UAE government will undertake the expansion and management of the facility.

SPECIFIC ANSWERS

“This loan looks more like a bribe to senior persons in government than a loan. This so called loan leaves more questions than answers and we want specific answers from none other than President Uhuru Kenyatta,” said Mr Odinga.

Mr Odinga said the UAE government agreed to offer the loan as a “bribe” for it to secure a tender to manage the port facility.

He said the UAE through Dubai Port World managed to be given the contract to manage the second container terminal but was beaten by about 12 other port operators which expressed interest on the same.

“Can President Uhuru Kenyatta prove to Kenyans that the so-called loan was not a bribe to sway the contract in favour of Dubai? Can he explain how he ended up giving the job to Dubai instead of the more than ten firms that came top? What was the purpose of the tender when the job ended up being given to a defeated bidder,” asked Mr Odinga.

He said Chinese consortium PSA International which had partnered with Multi Hauliers, a local group, emerged top but did not secure the contract.

Mr Odinga further wondered why the Japanese government, which funded and built the project expecting that it would be given the chance to manage and operate it, did not win the contract either.

He said there was a conflict of interest in the matter, accusing the President of having personal interest in having the Middle East firm manage the port.

“This particular loan appears to be looking around for something to finance as long as the port is delivered. It is a case study in avoiding accountability for money disbursed. It can letter be claimed to have financed anything and everything,” he said.

Last October, the Kenyan Government signed a bilateral cooperation agreement with the Government of the United Arab Emirates.

In that agreement, the UAE government agreed to lend Kenya a concessional loan to the tune of about Sh28 billion.

MAJOR SCANDALS

The loan was supposedly to be used in the development of the Port of Mombasa including what the agreement called “enhancing operational and business efficiencies within the Second Container Terminal” in addition to the development of Kipevu Oil Terminal.

Mr Odinga who is known for exposing major scandals in government, said the loan was given on condition that UAE will appoint an agent to operate, manage and undertake the expansion of the Second Container Terminal of the Port of Mombasa. UAE went ahead to appoint Dubai Port World (DP World) to manage the facility.

“It would appear the UAE did not win but purchased the management of our second container terminal at a cost of 275 million US dollars.

“Can President Uhuru Kenyatta prove to Kenyans that the so-called loan from the United Arab Emirates was not a bribe to sway the contract in favour of Dubai?” Mr Odinga asked.