• Building was bought at Sh400 million four years before EACC bought it.
• MPs question how agency got valuation without structural and architectural designs of building.
The probe into the Sh 1.5 billion acquisition of Integrity Centre took a new twist after MPs expressed doubts whether the valuation of the prime building was actually done.
This is after it emerged that the Ethics and Anti-Corruption Commission okayed spending of taxpayers’ billions in the absence of structural and architectural designs, critical documents in any property valuation.
Appearing before the National Assembly’s Public Accounts Committee chaired by Ugunja MP Opiyo Wandayi, anti-graft CEO Twalib Mbaraka admitted that the commission does not have architectural drawings of their headquarters more than one year after making the payments.
Mbarak said the 1.203 acres on which EACC headquarters sit was valued at Sh691,725,000 and improvements, including portioning of the building, valued at Sh650,347,101.
The commission also incurred Sh201,310,815 being payment for statutory allowances.
But documents tabled before the watchdog committee by the anti-graft body show that the same facility was bought at a paltry Sh400 million by another buyer –Tegus Limited- four years before EACC expressed interest.
The committee put the agency to task to explain how the purported valuation was possible in the absence of the key documents, expressing fears that Kenyans might have received a raw deal from the purchase of the office.
The panel consists of MPs Wandayi, Otiende Amolo (Rarieda), Junet Mohamed (Suna East), Eseli Simiyu (Tongaren), Patrick Makau (Mavoko), Kimani Kuria (Molo), Tom Kajwang’ (Ruaraka) and David Rono (Kerio South).
“You cannot get valuation without structural and architectural designs of the building,” Makau said.
Otiende expressed doubt over the Sh1.5 billion valuation figure, questioning how the property rose more than three times its cost within three years.
“The land was sold at Sh400 million and you are buying it at Sh1.5 billion less than four years later, does it mean that it is the valuation of NLC that is questionable?” Eseli asked.
On June 4, 2013, the property was bought by Tegus Limited at Sh400 million.
Wandayi further took issue with the Sh650 million paid for partitioning of the building saying NLC, and not the owner, had done the work.
“Are you aware that the portioning/improvements had been done by the commission?” Wandayi asked.
Mbarak requested for one week to furnish PAC with all proper documentation admitting that there were glaring gaps in the acquisition of the property.
He was accompanied by EACC vice chairperson Sophia Lepuchirit and commissioner Paul Mwaniki amongst other senior officials.
(Edited by R.Wamochie)