Lake Basin Mall saga: Oloo granted Sh10m bail

In Summary

• Former Lake Basin Development Authority MD Peter Aguko was granted Sh10 million bail.

Kisumu Speaker Onyango Oloo and former Lake Basin Development Authority MD Peter Aguko Abok at the Milimani law courts on Monday, September 9, 2019.
Kisumu Speaker Onyango Oloo and former Lake Basin Development Authority MD Peter Aguko Abok at the Milimani law courts on Monday, September 9, 2019.
Image: ENOS TECHE

Kisumu county Speaker Onyango Oloo, former LBDA boss Peter Aguko and Bobasi MP Innocent Momanyi have been granted Sh10 million bail in the Lake Basin Mall saga.

Director of Public Prosecutions Noordin Haji on Friday ordered the arrest of more than 30 people in the saga.

All the accused persons were on Monday admitted to bail ranging from Sh500,000 to Sh10 million by anti-corruption Magistrate Douglas Ogoti.

Oscar Odhiambo, Vincent Makonjio, Lydia Owino, Zhang Jing, John Zeyun, Erdemann Properties and Symbion Ltd were also granted Sh10 million bail.

George Omolo, Anthony Kiprono, David Nyapida, John Nyera, John Onyango, Bonfiace Orori, William Omoding, Jimmy Nabwera, Alex Mukabwa, Mary Goima, Kennedy Otawa, Michael Obora, Joash Dache, Dennis Mulaa and Josiah Okumu were granted Sh6 million bail.

Henry Odindo was granted Sh500,000 bail.

Eleven people were not in court to plead to the charges.

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.

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