Dam scandals were fake news
The general public with a high taste of consuming online news should always make it a habit of reading news from the verified media house social media accounts to avoid being lied to.
These days, President Kenyatta and his, ally Mr Raila Odinga, can barely hide their disdain of Deputy President William Ruto. Since their “Handshake”, the two, along with their minions, have sustained a choreographed campaign and rhetoric that seeks to project the DP as an incorrigibly corrupt fellow, unfit to serve as President.
In attempts to slow down the country’s Number 2, lives have been lost, careers destroyed, public projects halted and innocent people hauled to court on dubious corruption charges.
This column will apply critical thinking to deconstruct fake claims of mega corruption in the now-collapsed Kimwarer and Arror dams, initially made by Mr Odinga and supported wholly by the President and his government. We cite this as the silliness of politicising the fight against corruption — a prime example as to why the public remains sceptical, even cynical, of Mr Kenyatta and his anti-graft rhetoric.
The DP has strenuously maintained that the alleged Kimwarer and Arror corruption did not happen. His denial did not stop the dismissal of civil servants, including Henry Rotich, who was the National Treasury Cabinet Secretary, from their positions. Hasty suspension, followed by cancellation of these projects, exemplifies petty victimisation and denial of services to the residents of the dam areas for being of similar ethnic extraction as the DP.
Binding contract
Besides, the labelling of a conglomerate like CMC di Ravenna as “corrupt” without demonstrable proof, coupled with blatant violation of a legal and binding contract, has legal and financial implications.
When Kerio Valley Development Authority selected CMC di Ravenna to implement its projects, the Italian company was one of the best civil engineering companies in the world. It had more than 80 projects in 21 countries across five continents. Its website indicates that it has implemented projects in more than 40 countries.
The Treasury, Parliament, Senate, the Office of the Attorney-General, Cabinet and even the Office of the President raised no objection to the project specifications, financials, various assessments and selection of CMC to carry out the project. An approval was given, followed by the execution of a legal contract.
The government then made two payments: Sh7 billion to the Italian government as a refundable, government-to-government guarantee, and to CMC the equivalent to about 18 per cent the total contracted sum of Sh63 billion as commitment. CMC was then obligated to raise the needed capital, likely from selling construction bonds [guaranteed by Italian government] on international markets, and then construct the dams.
Committed to the contract
After completion, CMC was to hand the project to the government and thereafter receive its payment in full, plus interest. The Sh7 billion was to be refunded.
Curiously, Mr Odinga made his corruption claims at a time when CMC was advising its creditors that it was experiencing financial distress and that it was entering a restructuring process, or what Americans call Chapter 11 bankruptcy. CMC remained fully committed to the terms of the contract and had even begun recruiting staff, acquiring vehicles and equipment. They were even in the process of refurbishing office space at KVDA Plaza in Eldoret Town. The project proper had not started. Locals were yet to be compensated, resettled and the site handed to CMC.
The government reacted to Mr Odinga’s “whistleblowing” by arresting Rotich and others. It arraigned them in court for supposedly engaging in corruption that ran into billions of shillings. Shortly thereafter, Rotich was dismissed from his position.
The President then appointed a “technical committee” to look not into the alleged corruption but “assess the economic viability” of the two dams. After a remarkably short period of time, the committee delivered its findings: The two dams were ill-conceived and unsuitable. Armed with these findings, the President proceeded to cancel legal contracts with CMC.
It all seemed choreographed. Predictably, CMC moved to court seeking damages.
At this point, it is important to pose a few questions. Why did the President cancel these project, thereby forfeiting the Sh7 billion guarantee and risking punitive damages for violation of the contract? Why didn’t he wait for the company to collapse and then seek the refund from the Italian government? Although Mr Odinga and the President alleged corruption, why did the former focus on “project viability” but not alleged “malpractice”?
Why did the President, his Cabinet and Parliament approve these projects in the first place? How could a technical committee, comprising total strangers and outsiders, satisfactory find, in a short time, key projects ill-conceived and unsuitable?
Why didn’t the DPP seek to attach Rotich’s assets, including bank accounts, as they have done with other individuals? What stops the government from bringing evidence before a competent judge? Could Rotich be a pawn in the ‘Stop Ruto’ campaign?
