The government is carrying out a forensic audit at the troubled Kerio Valley Development Authority and issues surrounding the Arror and Kimwarer dams scandal.
Auditors have been deployed following last week's sacking of CEO David Kimosop. The KVDA board met in Eldoret last Thursday when it announced the termination of Kimosop's services with immediate effect.
The audit is part of recommendations by the KVDA board.
Kimosop's exit followed a row over the Arror and Kimwarer dam projects that are under probe by the DCI over a possible loss of Sh21 billion.
The board ordered the closure of Kimosop’s office and appointed his deputy Francis Kipkech to take over as CEO in an acting capacity.
Kipkech has been deputy chief executive at KVDA for more than 15 years. He was named new head as the government hires a substantive CEO.
Kimosop has dismissed his removal by the board and declined to hand over to Kipkech.
Head of Public Service Joseph Kinyua has directed the KVDA board to start the process of hiring a new CEO.
Board chairman Jackson Kiptanui directed the shutdown of the CEO’s office and the withdrawal of Kimosop's official car and other benefits.
Kiptanui said the board had already made its decision and would soon start the recruitment of a new CEO. But speaking in Kerio Valley on Saturday, Kimosop said he did not know why he was sacked.
He said he had done his best for KVDA and said his contract had been extended by two years.
“I'm waiting to be told why I was removed, yet I had not done any mistake,” Kimosop said.
In his report for the last year, Auditor General Edward Ouko indicated KVDA had accumulated losses and debts amounting to more than Sh2.1 billion.
Ouko said if the loss-making continues, the state corporation faces collapse.
"If strategies are not put in place to reverse the loss-making trend, the authority’s future operations will be adversely affected," Ouko said.
Sources said the auditors deployed last week had visited the authority to start work and prepare a fresh report on their findings.
Kimosop is among 30 KVDA employees under probe over the dams saga. Sources told the Star the KVDA board might also remove five other top officials over graft allegations.
The probe is being conducted by the DCI. The Italian firm, CMC di Ravena, which was contracted to build the dams, says its work stalled after their bank accounts were frozen.
“We can’t transact anything because our accounts were frozen. We cannot even pay duty for machinery we had imported because we don’t have money,” project manager Mauro Abaffan said.
The government has also suspended the compensation of 1,000 families whose land was to be taken over for the projects in the Kerio Valley.
The Kenya Forest Service has also declined to surrender more than 500 acres that were to be part of the project area.
