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EACC probes Sh40bn oil terminal tender

Wednesday April 10 2019

Kipevu Oil Terminal tender

Kenya Ports Authority Managing Director Daniel Manduku speaks during an event at PrideInn Hotel on February 8, 2019. He has been summoned by EACC over the Kipevu Oil Terminal tender. PHOTO | FILE | NATION MEDIA GROUP 

MOHAMED AHMED
By MOHAMED AHMED
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The Ethics and Anti-Corruption Commission (EACC) is investigating the award of the Sh40 billion Kipevu Oil Terminal tender at Mombasa port.

The EACC said there were malpractices during the award of the terminal construction tender to China Communication Construction Company (CCCC).

Already, EACC has summoned 16 Kenya Ports Authority (KPA) top officials among them Managing Director Daniel Manduku and his predecessor Catherine Muturi-Wairi.

SUMMONED

According to a letter seen by the Nation, Ms Muturi-Wairi is set to appear before the commission to record a statement on Wednesday.

Dr Manduku is scheduled to turn up at the EACC Mombasa regional office at 10am on Thursday.

Others summoned include Head of Procurement and Supplies Anthony Nyamancha, former Head of Procurement and Supplies Yobesh Oyaro, and chairman of the tender committee Rashid Salim.

Other officials are Adza Dzengo, Geofrey Kavate, Edward Kamau, William Ruto, Dan Amadi, Margaret Shayo, Beatrice Ratemo, Geoffrey Namadoa, Raymond Warr, Miguel Pires, and due diligence team member William Tenay.

PRICE INFLATED

The letter, signed by Mombasa EACC boss Japhet Baithalu, says five officers will be in charge of the exercise.

“So far we have already taken statements from at least 11 officials. We are at the preliminary stages of our investigations, we will later know who are the suspects and those that will turn out to be our witnesses,” Mr Baithalu told the Nation during an interview at his office.

A highly-placed source said the project was estimated to cost Sh15 billion, which was later raised to Sh25 billion and then Sh40 billion.

“The award of the tender was signed in October last year and 10 per cent of the amount paid, but the officials dilly-dallied for reasons best known to them, and that is what is being pursued. There were malpractices,” he said.

WAIRI FIRED

Mr Baithalu said investigations are also following an international angle.

Officials at the port claimed that tendering malpractices were among reasons the former managing director was sacked.

Ms Muturi-Wairi was sent home last year and replaced with Dr Manduku.

Work on the terminal started in February this year and is expected to take two and half years to complete.