Ketraco MD’s sudden exit amid graft probe puzzles lawmakers

MPs have questioned the abrupt resignation of Fernandes Barasa as the Managing Director of Kenya Electricity Transmission Company Limited, a day before he was to respond to audit queries.

Mr Barasa, who stepped down on Monday, had been expected to appear before the National Assembly Public Investments Committee (PIC) yesterday. His contract was due to end in April.

The committee has also summoned senior Kenya Power managers tomorrow over Sh600 million excess payment made to Lake Turkana Wind Power (LTWP) for a project in Marsabit County.

When LTWP wanted to wire the excess payment to the public utility firm, they were, strangely, given a wrong account number.

“I find it a bit worrying that the MD resigned yesterday (Monday), hours before he was to meet us,” said the PIC chairman, Mr Abdulswamad Nassir.

Acting MD Anthony Wamukota could not explain why Mr Barasa left the company before the expiry of his contract.

“Even if it is about elections, he still had one week according to regulations by the Independent Electoral and Boundaries Commission (IEBC),” said Mr Wamukota.

He told MPs that he needed more time to go through the answers provided by Mr Barasa since he was only partly involved in their preparations.

Read: How NSSF chief masterminded theft of billions

Likoni MP Mishi Mboko alleged that the former MD could have been part of a cartel and probably needed to avoid facing MPs over the audit report.

“I don’t know whether he is part of the cartel or not. We are just surprised by his move,” she said.

The legislators want Kenya Power to explain why it provided a wrong bank account to LTWP and who authorised the excess payment.

The committee is also seeking to establish whether some rogue officials at the Ministry of Energy and Kenya Power deliberately gave LTWP a wrong account to benefit from the interest accrued.

The payments for the multibillion-shilling project were made in four tranches from June to September, 2020.

Officials from LTWP last year told MPs that they were willing to refund the amount anytime the Kenya Power Company provides them with the correct account details.

According to an official at the Auditor-General’s office, the money earns an interest of Sh130 million annually. The multibillion-shilling project in Loiyangalani comprises 365 wind turbines, each with a capacity of 850kW and a high voltage substation. 

Offshore bank address

LTWP received an email from their bank on December 23 last year, informing them that the payment they had made had been returned due to insufficient account details.

On January 18 this year, LTWP wrote to Kenya Power Company, requesting the correct account so that they could deposit the excess payment they had received.

 “We subsequently reached out to both, again on January 3, 2021 and January 12, 2021, but with unfortunately no response received yet. We write to you to help support the efforts to obtain the necessary additional bank details such as an IBAN correspondent bank details, offshore bank address and reference to allow us to resubmit the payment,” states a letter from LTWP to the acting MD KPLC Rosemary Oduor.

KPLC replied through a letter dated January 27, saying they were consulting with the Ministry of Energy to provide the additional information requested.

“Please note that the challenge has been shared with the Ministry of Energy requesting for additional details from the Central Bank. We will communicate further details in due course on this matter,” states the Kenya Power letter signed by Ms Oduor.

MPs are now questioning why KPLC does not want to take the money and who authorised its remittance to LTWP.

“It cannot take one year to provide bank details. Unless there are things happening with this money that we don’t know,” Mr Nassir said.

These are the questions awaiting top Kenya Power managers on Thursday and Mr Wamukota next week.

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