Exposed: The firms that pocketed Sh4.3bn for Africa Climate summit
Some of the over 2500 delegates who attended the Africa Climate Summit at the Kenyatta International Conference Centre in September 05, 2023.
By David Mwere
Nation Media Group
What you need to know:
- KICC is yet to be paid USD2.5 million, which is Sh370 million for the conference.
- USD12.5 million (Sh1.9 billion) were direct payments the donors made to the companies.
Documents before parliament reveal that at least five companies whose procurement by the State Department for Environment remains doubtful, pocketed a share of Sh4.3 billion used to organize the inaugural Africa Climate Summit (ACS) held in Kenya last year.
The documents, in our possession, show that dollar-denominated funds were paid by the donors directly to the companies that were contracted by the State Department for Environment to provide services for the summit held from September 4th to 6th 2023 at the Kenyatta International Convention Centre (KICC).
This comes even as MPs questioned how ACS CEO Mr Joseph Ng’ang’a was appointed and how his term was subsequently extended.
Environment and Climate Change Principal Secretary Festus Ng’eno, appearing before the committee, was tightlipped on how Mr Ng'ang'a was appointed and whether it was through a competitive process despite Kacheliba MP Titus Lotee breathing under his nose.
“How was the CEO picked? What was the process? We know there is a provision in law which gives equal opportunity. Was this followed?” posed Mr Lotee.
But when the Kacheliba MP demanded to know the circumstances behind the CEO’s contract extension, PS Ng’eno; “when we realized that he had not finished his work, we extended the contract.”
The CEO’s tenure was to end in October 2023 but was extended to February 29, 2024.
“The legality of the extension is also in question because it was done through a letter and not through a gazette notice that appointed him,” said Mr Lotee with the PS pushing back the blame to Head of Public Service (HoPS) Mr Felix Koskei.
“It is the head of public service who extended it,” the PS said.
But even as this happened, KICC is yet to be paid USD2.5 million, which is Sh370 million for the conference facilities it provided during the summit as the companies got their payment.
For instance USD12.5 million, which is about Sh1.9 billion as per the exchange rate of Sh148 to the dollar at the time, were direct payments the donors made to the companies.
President William Ruto takes a group photo with delegates at KICC, Nairobi on September 4, 2023 during the Africa Climate Summit 2023.
Some of the companies paid include Vivace, Bayes consulting, PWC, Red Oak and Jacaranda hotel among.
According to Nakuru Town East MP David Gikaria it is not clear how the companies were picked- whether it was through a competitive process- and whether they eventually paid taxes from the proceeds to the Kenya Revenue Authority (KRA).
“Did they remit what was due to KRA?” posed Mr Gikaria in a question that remains unanswered.
The Denmark government paid Sh117.6 million (USD794.613.85) in direct payment to Red Oak for the KICC venue.
The German government paid USD2,200,000, which is Sh326.6 million towards ACS secretariat being in support for media and communications.
The Germany Government also paid Sh17.8 million (USD120,000) to cover the costs for consultancy and content for ACS CEO’s office.
The name of the consultant was not provided by the PS despite demands from the committee members.
The French government, UNDP and Eco Bank spent funds on the youth summit that was organized on the sidelines of the ACS summit.
This included the French government paying Sh799,200 (USD5,400) to Jacaranda hotel for the youth accommodation, UNDP paying Sh14.8 million (USD99,700) in part payment of Creshwood invoice for branding the Africa Youth Climate Assembly (AYCA) with Eco Bank paying Sh5.5 million (USD37,009.47) to Red Court for the youth accommodation.
The French government also paid Sh41 million (USD277,319) directly to Tamarind language services for translation services during the summit.
Global Energy Alliance for People and Planet (GEAPP) had Sh14.8 million (USD100,000) in direct payment to Vivace for the summit event organizer.
The Gates Foundation paid Sh74 million (USD500,000) directly to Vivace for the summit event organizer.
GEAPP also paid Sh51.54 million (USD348,220) directly to Bayes Consulting for data management and programme support budget line and Sh34.34 million (USD232,000) directly to PwC for fund management services.
The Denmark government paid Sh6.1 million (USD40,993.27) for monitoring and evaluation and project management, Sh51.8 million (USD350,000) for ACS secretariat with the French government releasing Sh14.7 million (USD99,350) towards resource mobilization consultancy fees.
The Funding for America paid Sh333 million (USD2,250,000) being support for content and financial instruments “to be announced during the summit.”
Children’s Investments Fund Foundation (CIFF) released 148 million (USD1 million) for consulting support on deals, pitches and pledges with Rockefeller Foundation also releasing the same amount for the same course.
The Africa Development Bank (AfDB) had Sh370 million (USD2.5 million) in support to the Ministry of Foreign Affairs (MFA) for accommodation costs and meals among others.
The AfDB also paid Sh44.4 million (USD300,000) for consultancy services for developing climate adaptation compacts.
