•The contract, which was initially worth Sh2.4 billion, was revised upwards
•In July, Edermann Limited threatened to sue the Star after the paper published an article indicating that some its directors were among those set for prosecution.
Image: FILE
Kisumu County Assembly Speaker Onyango Oloo and Bobasi MP Momanyi Obiri are among the 35 individuals set for arrest over the construction of the controversial Sh4.2 billion Lake Basin Development Authority Mall in Kisumu.
Director of Public Prosecutions Noordin Haji on Friday evening ordered arrest and prosecution of the suspects after investigations by the EACC found them culpable of committing illegalities and irregularities in the award of the lucrative tender.
They will be charged with conspiracy to defraud the taxpayer of more than Sh400 million. They board members and tender committee, according to the DPP, inflated the cost of the construction of the mall from Sh3.8 billion to Sh4.2 billion.
Oloo was a board member at LBDA while Momanyi is a managing director of Quantech Consultancy that that provided services for the project. The two, being state officers, will now be required aside until their cases are concluded.
“In addition, Quantech Consultancy issued the final account for the Sh4, 138, 895, 104, an inflated amount which was way above that in the deed valuation,” Haji.
Further, the investigations established that LBDA evaluation committee illegally awarded the tender for the construction of the mall to a Chinese construction company – Edermann Property Limited (Ltd).
The contract, which was initially worth Sh2.4 billion before the cost was revised upwards, was executed by the former LBD managing director Peter Obok and former board chairman David. Zhanga Jing and John Zeyun signed the deal on behalf of the contractor. The four are among those set for arrest and prosecution.
Others are Antony Kisaka (LBA CEO), Nelson Onyango, Henry Odindo Emmanuel Songoro and Moses Wekesa. The four were members of the tender evaluation Committee.
LBDA tender committee members; Fredrick Chere, Geodfrey Mwangi Albert Omondi Teresia Ochaka and Jackline Otono will also be charged.
Others are LBDA board members’; George Omolo, Antony Kogo, David Oyosi, Boniface Simba, William Omoding, Michael Obara, Josiah Okumu John Mango, Mary Michieka Joash Dache and John Onyango.
In July, Edermann Limited threatened to sue the Star after the paper published an article indicating that some its directors were among those set for prosecution.