Police on high alert as DPP hits Ruto's stronghold

Police were on high alert last night in many parts of the Rift Valley after Director of Public Prosecutions Noordin Haji ordered the arrest of 28 people among them Treasury CS Henry Rotich.

The alert was issued soon after Haji announced the arrest of Rotich, long-serving PS Kamau Thugge and East Africa Community PS Susan Jemutai on suspicion of financial misconduct related to the construction of Arror and Kimwarer dams.

Twenty-five other people were arrested in a move that sparked security fears. Most of those wanted come from Rift Valley and worked for Kerio Valley Development Authority. 

"The NSIS advice that the region is secured considering its history. So we have deployed sufficiently across in case of any violence," said a senior police officer based in the Rift Valley regional headquarters. 

 In 2007, more than 1,300 people were killed after clashes broke out in the region following disputed presidential elections.

On Monday, the DPP issued a tough warning to anyone planning to cause violence.

"Being cognizant that corruption always fights back and that there may be elements who may seek to exploit these indictments to instigate social unrest, we have put in place mechanisms to monitor any such attempts, which will be countered with the whole of government response," he said

The unprecedented graft purge has hit at the heart of Deputy President William Ruto after the dams scandal eventually brought down his allies, months after he rubbished the scandal as “flat lie”.

 Haji placed Rotich at the centre of the alleged sleaze meant to siphon billions from the Sh63 billion dam projects.

Haji is set to charge the 28 individuals today and two entities, including the bankrupt Italian firm CMC di Ravenna that was awarded the lucrative tenders.

In a clear signal of the bitterness in Ruto’s camp, Senate Majority Leader Kipchumba Murkomen rubbished the arrest as a “publicity stunt being used to play politics.”

“I can see deliberate efforts to satisfy short term political interest…We are not fighting corruption but just lying to Kenyans,” said Murkomen.

Ruto has previously told Uhuru to his face that no money was lost in the Arror and Kimwarer dam and accused investigating agencies of “selective prosecutions, devoid of facts and propelled by lies”.

“Selective prosecution targeting predetermined individuals and projects, and steamrolled by a narrative of convenient lies and falsehood and propaganda, is not a fight against corruption. It’s impunity, it’s politics, and it’s headed in the wrong direction,”Ruto declared in March.

But Uhuru took a tactical retreat and hit when it was least expected amid indications that replacements at Treasury had been finalized.

Yesterday, a security alert was issued in the Rift Valley of possible unrest as Ritich and Kerio Valley Development Authority bigwigs, mainly from the Kalenjin community, spent the night behind bars.

However, Haji fired a warning salvo that the government has put in place “mechanism to monitor any such attempts, which will be countered with the whole of government response!”

Speaking to the press on Monday, Haji laid bare how Rotich allegedly masterminded a process that flouted all procurement rules in the book and abused his oath of office to ensure that the ‘lucrative deal’ goes through.

“Under the guise of carrying out legitimate commercial transactions colossal amounts were unjustifiably and illegally paid out through a well-choreographed scheme by government officers in collusion with private individuals and institutions,” Haji stated.

To realize their end, a number of procurement procedures guiding such projects were ignored and the law circumvented to hand over the multi-billion tender to Italian based company CMC di Ravennna.

Kerio Valley Development Authority which inked the deal with Italian firm, it emerged, chose Public Procurement and Disposal Act 2005 for the concession agreements despite the fact that the law in 2013 prescribed Public Private Partnership.

 In a clever move to defraud taxpayers, Haji said, National Treasury silently negotiated for a commercial facility increasing the initial Sh46 billion project amount to Sh63 billion.

This means taxpayers would be forced to fork out an extra Sh17 billion.

CMC di Ravenna – which was at one time straining at getting voluntary liquidation in Italy – was awarded the multi-billion project without draft technical designs, crucial documents required before a contract is issued.

The Italian contractor only submitted draft technical designs in February 2019, four years behind schedule and after the investigations had commenced.

In yet another move to siphon taxpayers’ money, Haji said, Treasury entered into a facility contract in Euros while commercial contracts were in USD which he said  occasioned massive loss to the government through exchange rates.

The DPP also said Treasury released a further Sh643 million which was intended to resettle persons that would be affected by compulsory acquisition of their land.

Sleuths piecing together the dam mystery observe that there was no evidence of payment made or the land acquired, four years after the colossal amount of money was released by Treasury.

“Furthermore, Kenya Forest Service in a bid to protect our environment strongly opposed any excision of forest land pointing to a significant adverse impact on the forest ecosystem,” Haji said at his offices.

 Out of the Sh63 billion in respect of the projects, as at January 2019, the government of Kenya has made advance payment, commitment fee, insurance and other costs totaling Sh 19.7 billion.

Out of this, Sh11 billion was paid upfront for insurance.

Also recommended to be charged are NEMA CEO Geoffrey Wahungu, ex- KVDA managing director Kipchumba Kimosop, Inspector of State Corporations Titus Muriithi, Treasury chief economist Kennedy Nyachiro and Treasury director of resource mobilisation Jackson Kinyanjui.

Others are: KVDA head of supply chain William Kipkemboi, Paul Serem (manager, engineering services), Francis Chepkonga , Samuel Kimutai , David Juma, Patrick Kiptoo, Elizabeth Kebenei and Esther Kiror of the tendering committee.

From the KVDA ad hoc technical and financial committee, Haji approved charges against Moses Kipchumba, Nelson Korir, Isaac Kiiru, Patrick Kipsang, Frederick Towett, Jotham Rutto, Charity Muui, Geoffrey Wahungu and David Ongare.

Boniface Lengisho from Nema and Paolo Porcelli, a director of the disgraced Italian firm, will also be charged.

Haji believes there is concrete evidence linking the 28 individuals and entities.

As part of his evidence, Haji pointed that the implementers of the projects deliberately ignored a  March 3, 2017 Treasury report that cautioned against incurring additional debts that would unnecessarily stretch the country’s national borrowing over and above the debt regulations limit.

“If this borrowing is converted into shillings at the prevailing rate of 106.2 it translated to approximately a loan of Sh 61 billion. Added to the GoK total public debt stock of Sh3.9 trillion as at February 27, 2018 debt stock increases to Sh4.043 trillion equivalent to 52.9 per cent in the Net Present value of Debt to GDP which is above the limit of 50 percent provided for in Section 26 (1) of the Public Finance Management Regulations,” read part of the ignored expert opinion.

Rotich becomes the first Cabinet Secretary to be forced out of office over corruption after Uhuru got re-elected for his second and last term in office.

The 28 individuals will be charged with eight offences including conspiracy to defraud, willful failure to comply with applicable procedures and guidelines relating to procurement and engaging in a project without prior planning.

They will also face offences of abuse of office, financial misconduct, fraudulent acquisition of public property, knowingly giving misleading document and willful neglect to perform official duty.

Haji noted his office might prefer more charges after getting investigation reports from Italy and UK authorities who are currently helping the joint team in unearthing the financial fraud.

The DPP and Directorate of Criminal Investigations boss George Kinoti flew to Italy on June 10 to conclude investigations into the Arror and Kimwarer dams scandal.