• Cabinet did not approve the Sh 22.5 billion controversial Kimwarer dam project.
• Cabinet memorandum of December 3, 2008, stated that only development of Arror Integrated Multipurpose had the nod of Cabinet.
The Cabinet did not approve the controversial Sh22.5 billion Kimwarer dam project, Auditor General Edward Ouko has said.
In his report, he said only Sh27.7 billion Arror dam was sanctioned by the Cabinet. National Assembly Majority leader Aden Duale on Tuesday tabled the 2017-18 report in the House.
National Treasury Cabinet Secretary Henry Rotich and Principal Secretary Kamau were forced to step aside after they were charged over the dams scandal.
Rotich and Thugge surrendered on July 22 after Director of Criminal Investigations Noordin Haji ordered their arrest. They were taken to the DCI headquarters.
Kerio Valley Development Authority’s managing director David Kimosop was sacked on May 30 over the scandal. He was also charged.
Citing a Cabinet memorandum of December 3, 2008, Ouko said that only the Arror integrated multipurpose dam project was given the greenlight. President Uhuru Kenyatta chaired the Cabinet meeting.
“There was no evidence to show that Kimwarer multipurpose project was approved by the Cabinet,” Ouko said.
“Although, the management indicates that the tendering process was informed by the Cabinet approval, the Cabinet memos available for audit review indicate that only Arror was approved.”
Ouko’s report also faulted KVDA for ignoring advice from the Attorney General to establish the capacity of Italian firm – CMC Di Ravena – to undertake a project of that magnitude.
The company which was at one time straining to get voluntary liquidation in Italy, was awarded the multi-billion shilling project without draft technical designs which are crucial documents required before a contract is issued.
Ouko warned that taxpayers could spend more due to delay in securing land for the twin dam projects.
The government was to give an additional Sh7.7 billion to meet local costs of resettlement, compensation, project management and any other costs not covered by the donor.
The report indicates that the Treasury has only released Sh643,200,000 for Arror project out of which Sh8,634,135 had been spent on public participation and sensitisation.
The Treasury is yet to release a shilling for the Kimwarer counter funding.
“Twenty-two months after the contract agreement was signed, KVDA is yet to complete the process of acquiring project land from affected residents and it is not known when the process will be completed,” read part of the report.
“Further, there is no evidence that the total amount required for land acquisition and compensation has been factored in the 2018-19 budget to enable the authority acquire land for resettlement and compensate the landowners.”