• The ODPP conducted independent investigations and found that three firms bid for the tender to build the mall, but all were non-responsive.
Image: MAURICE ALAL
Director of Public Prosecutions Noordin Haji has ordered the arrest of Kisumu county assembly speaker Onyango Oloo, former LBDA managing director Peter Aguko and Bobasi MP Innocent Obiri over inflation of the cost of the Lake Basin Mall.
Haji in a statement on Friday said investigations were launched by EACC on July 28 after the commission received a complaint of inflation of the cost from Sh2.5 billion to Sh4.1 billion.
However, upon completion of a probe and forwarding of the file to the DPP's office, Haji returned the file to the EACC on August 1 for further investigations because the report had "gaps".
The ODPP conducted independent investigations and found that three firms bid for the tender to build the mall, but all were non-responsive.
However, the tender was awarded to Erdemann Property Ltd.
The tender was awarded on March 14, 2013 and former Lake Basin Development Authority boss Aguko and ex-chairman David Oyosi executed the agreement.
For Erdemann's side, Zhang Jing and Zeyun Yang executed the agreement.
The contract amount was Sh2.5 billion.
However, during construction, Haji said additional scope of work was irregularly added during a meeting in December 2014 for an additional Sh620 million for the mall and another Sh680 million for a showroom, tyre centre and three-star mall.
The board is also accused of approving the borrowing of Sh1.3 billion from Co-operative Bank, bringing the total borrowing to Sh2.5 billion.
Aguko and Oloo are further accused of executing three charges over LBDA's land for Sh2.5 billion from Co-operative bank in March 2014, January 2015 and May 2015.
Haji said, "This singular act exposed LBDA's property to the risk of sale in the event of a default in the repayment of the loan."
Erdemann was also accused of committing to fund 80 per cent of the project, but failing to do so.
Erdemann is accused of bribing Oloo, then the chairman of the board, with Sh17 million and other benefits including apartments and shops.
Then chairman of the LBDA finance committee, George Odawa, allegedly received Sh12 million.
Others who face arrest are LBDA evaluation committee members - Anthony Kisaka (CEO), Nelson Onyango (production technologist), Henry Odindo (quantity surveyor, Quantech), Emmanuel Milikau (architect, Symbion) and Moses Wekesa (consultant, Symbion).
From the tender committee, Haji has called for the arrest of five members -Onyango Chere, Godfrey Mwangi, Albert Omondi, Teresia Ochaka and Amelia Atieno.
Sixteen LBDA members face arrest: Oloo, George Odawa, Anthony Kogo, David Oyosi, John Mango, John Collins Onyango, Boniface Simba and William Omoding.
Others are Jimmy Nabwera, Alex Mukabwa, Mary Goima, Kennedy Musembe, Michael Obora, Joash Odhiambo, Dennis Mulaa and Josiah Okumu.
Eight contractors also face arrest.
They are Jing, Zeyun, Edermann, Oscar Odhiambo, Symbion, Lydia Owino, Vincent Makonjio and Obiri.