CS Wamalwa washes hands off controversial dam Thwake dam

Water and Irrigation Cabinet Secretary Eugene Wamalwa has tactically placed the responsibility over the handling of the controversial multibillion contract for the construction of a dam on his Principal Secretary, Patrick Nduati Mwangi.

He however told members of a Parliamentary committee that the award to China Gezhouba Construction Group Corporation for construction of Thwake dam had been sanctioned by the financier, African Development Bank. It has also been cleared by the Ethics and Anti-Corruption Commission and the Attorney General.

Mr Mwangi is now faced with the task of deciding whether the contract for the construction of the dam will go to China Gezhouba Construction Group Corporation (CGCGC) or STECOL Corporation (Sino Hydro Tianjin Engineering Co Ltd), whose bid is Sh3 billion more than that of CGCGC.

Official bidding documents show that the ministry’s Tender Committee, which Mr Mwangi appointed on February 9, this year, overruled recommendations of the Tender Processing Committee (TPC) to award the Sh62.3 billion tender to CGCGC — the lowest evaluated bidder.

CGCC put in a bid of Sh36.9 billion for the first phase of the multi-billion shilling dam, but the MTC went ahead and awarded the contract to STECOL Corporation at a cost of Sh39.5 billion.

Mr Wamalwa told the committee on Thursday that Mr Mwangi had cited pending clearance from the EACC and the parliamentary committee as the impediments to the award of the contract.

But the EACC has already cleared the award while the parliamentary committee said it had no power over the matter as the awarding of contracts goes beyond its mandate.

“It is even said in the Bible that Jesus asked for the cup to be taken away from him. He (the Principal Secretary) has wanted this cup taken away from him. He gave to AfDB, it has been given back to him, he gave it to the EACC, it has been given back to him, he gave it to the AG, it has been given back to him. Now he must take it,” said Mr Wamalwa at a meeting with the committee.

TAKE RESPONSIBILITY

The minister has argued that it would be unfair to subject Kenyan taxpayers to pay Sh3 billion over the lowest evaluated bidder.

But committee chairman Adan Mohammed Nooru insisted that there were issues that need to be dealt with before the decision on the award of the contract is made and insisted that Mr Wamalwa would carry the responsibility.

These are, he said, the integrity of the competing Chinese companies, both of which were at various points in trouble with the African Development Bank (AfDB) and the period during which they had been in trouble.

He said the committee was concerned that the companies had used the experience of their subsidiaries, which had been barred by the AfDB and asked Mr Wamalwa to confirm it.

“We shall call for the documents which the company used to quote and see whether they used the experience,” said Mr Nooru.

He said the committee would also want to know whether the companies had been barred by the time the tender process started in 2015.

11 COMPANIES RIDDLE

He asked Mr Wamalwa to find out about an allegation that a company that had been pre-qualified was added to the list of those to be evaluated and to also find out the capacity of the companies to implement the project.

There were 10 companies at the time of pre-qualification, he said, but 11 companies were considered in the evaluation, meaning one company sneaked in.

The matter was also brought up by Dagoretti North MP Simba Arati.

“We have pointed to you the grey areas where there are issues. You need to go back and clear those issues. We’re going to hold you responsible. The buck stops with you. With that in mind, go and clear the issues. We need you to give us the feedback within seven days,” said Mr Nooru.

He said the committee would also find out from the ministry whether the issues have been cleared.

Mr Wamalwa said the ministry had informed the bank, which has threatened to take away its funding, about the cause of the long delay in awarding the contract.

He said that contrary to the insistence that Ghezhouba had been barred by AfDB, it had actually been reprimanded.

“During the period of a reprimand, a company is allowed to participate in the pre-qualification,” said Mr Wamalwa.

He said that Sino Hydro was similarly under a reprimand.

CONTRADICTION

This contradicts the assertion by the PS on Tuesday that he had turned down the minister’s directive to award the contract to Gezhouba because the firm had integrity issues having been blacklisted by the World Bank and AfDB.

Mr Wamalwa said despite the evident strained relations between him and Mr Mwangi, the Principal Secretary, there is no problem between them.

“I think he is new in government. This is his first major challenge and I urge patience for him to be able to get used to the position. He has enough advice and I tell you I have the confidence that he will make the right decision,” said Mr Wamalwa.