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Compensation delays due to EACC probe, says NLC

Transport ministry on spot over release of Sh17 billion without documents.

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by moses odhiambo

News16 July 2019 - 17:48
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In Summary


• The lands commission has defended itself against accusations it is delaying compensations for phase two of the Standard Gauge Railway. 

• NLC has been accused of unjustifiably withholding payments to landowners at Nkoroi, Kajiado South on a 2.5 kilometre stretch on the Nairobi-Naivasha line. 

President Uhuru Kenyatta inspects a trial section of the Standard Gauge Railway (SGR) at Mtito Andei, Makueni County on January 23, 2015.

The lands commission has defended itself against accusations it is delaying compensations for phase two of the Standard Gauge Railway. 

NLC has been accused of unjustifiably withholding payments to landowners at Nkoroi, Kajiado South on a 2.5 kilometre stretch on the Nairobi-Naivasha line. 

The agency yesterday told MPs at the Transport committee it withheld the claims for lack of authentic ownership documents, succession disputes among families, and ongoing investigations.

 

The entity said it had paid out Sh10.4 billion before the payout was stopped to pave way for investigations into suspected fraud.

Acting CEO Kabale Tache said the commission was paid Sh17.2 billion by Kenya Railways, out of which Sh3.8 billion is yet to be paid out. 

However, investigations revealed that the claims had a variation of about 66 per cent higher than the actual value of the said properties.

Tache admitted the delay was causing the affected families pain but maintained they wouldn’t want to commit the same mistakes that saw the payments paused.

“The investigations complicated the process which was compounded by the fact that commissioners were also leaving office,” she said.

She added the commission was being cautious after Sh10.5 billion had been paid with errors. 

"We are not changing any awards but just making sure we do the right thing. We want what is fair to affected persons and the country,” she said. 

 

The committee chaired by Pokot South MP David Pkosing put the Ministry of Transport on the spot for releasing Sh17 billion to NLC without supporting documents.

The lawmakers poked holes on the payment saying the law was not followed in the release of the compensation funds.

The committee reprimanded the ministry saying officials risk taking advantage of such a move to siphon public funds.

Pkosing said, “Compensation is a serious problem at the land commission. Kenyans are saying the payment delays are because officers want some of the money. This is an act of extortion.”

The members questioned how the figure was concluded after it was revealed the funds were released as requested by the lands commission. 

“Don’t tell us that you gave Sh17.2 billion to people you don’t know. Are you telling us that if NLC gives you a list, you just transfer money?” Nakuru West MP Samuel Arama asked.

“Do you verify the claims? You have told this committee that there are no authentic documents, give us evidence,” Pkosing said.

In its defence, the ministry said the Sh17 billion was for the entire corridor with CAS Chris Obure stating that it was NLC that communicated reasons it withheld the funds.

Kajiado North MP Joseph Manje, who petitioned the committee on behalf of the claimants, further complained that there was no notice of demolition.

He also questioned why there was no progress in executing the payments despite the valuation by NLC, EACC, and the Presidential Delivery Unit.

But Tache said the NLC has formed an internal working group which is harmonising the list with a  view to finalising the compensation.

She said that some 14 claims, however, will not be paid because the properties in question were overvalued.

But MPs asked on what basis the remaining persons will be paid in the face of the latest evaluation showing that they will be paid 66 per cent less.

“It seems property owners have no say in the final figures for their compensation,” Manje said.

The NLC pledged to clear the backlog for the project to be launched next month. 

Edited by Esther Mbugua

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