Italian firm officials deny graft allegations in dams tendering
What you need to know:
- Arror and Kimwarer dams project manager and chief engineer addressed journalists in Eldoret town.
- They said the firm will account for the money already given the company.
- They vowed to continue with works despite ongoing investigations.
Officials of the embattled Italian firm, CMC di Ravenna, which was contracted to build the Arror and Kimwarer dams in Elgeyo-Marakwet County on Friday dismissed allegations that billions of taxpayers’ money was lost before the start of the two projects.
Addressing journalists at the Kerio Valley Development Authority (KVDA) offices in Eldoret, they said they were ready to continue with their construction despite the ongoing investigations by the Directorate of Criminal Investigations into the suspected embezzlement of close to Sh21 billion.
The officials said they will account for the money already paid to the company.
The two projects were awarded by KVDA whose top officials, including chief executive David Kimosop, have been questioned by the DCI over the contract.
According to Mr Mauro Abbafati, the project manager, the firm can account for the advanced payment released to implement the project.
“We have received only 15 percent of the total funds. I don’t care what is happening in Nairobi. It is not affecting our work we will proceed with the project,” he said, when asked whether the ongoing probe into alleged loss of funds has affected works.
Ms Eva Luongo, the project’s chief engineer, said the firm undertook an international contract and there was no risk of loss of funds.
“The advanced payment was given because we gave bank guarantees. That means if there is a valid reason to stop the project, a client has the right to ask back for the advance payment so there is no risk,” she said.
The representatives also defended the amount they were paid for the works, saying that the contract had such provision for the payments.
“With the international contract it means that engineering, procurement and construction are part of the contract. That is why we are doing the part of the design now. It is not true the design should be given first before the payment,” he added.
The government is yet to compensate the affected families to be displaced to give room for the start of the construction of the project. `
The Italian firm has come under spotlight over possible loss of public funds amounting to Sh21billion.
Work on the dams has never started despite the payment of Sh21 billion to the broke Italian firm, and an insurance company which had secured the loans.
A spending breakdown by the National Treasury shows an advance payment of Sh7.8 billion was paid out. Of this amount, Sh4.3 billion was released for the construction of Arror dam and Sh3.5 billion for Kimwarer.
The balance of the money dished out was paid to an insurance firm, Sace, as security for the construction of the dams.
