• According to the charge sheet, Oloo received Sh15 million from Erdemann Property.
Image: MAURICE ALAL
Kisumu speaker Onyango Oloo received a Sh15 million bribe in the Lake Basin Development Authority Kisumu Mall scandal, the prosecution has said.
Oloo who appeared in court yesterday denied the accusation. He also denied inflating the tender by Sh1.6 billion and wilfully failing to comply with the procurement law.
The office of the Director of Public Prosecutions yesterday told the court that the contract for lower Kanyakwar phase 1 project was initiated at Sh2.4 billion but by close of the project, it was valued at Sh4.1 billion.
According to the charge sheet, Oloo received Sh15 million from Erdemann Property. Oloo was charged alongside Henry Odindo, Bobasi MP Innocent Momanyi, Oscar Odhiambo, Vincent Ogenge, Lydiah Owino, Zhang Jing, John Zeyun Yang, Erdemann Property Limited and Symbion Kenya Limited.
Erdemann and its directors were the contractors of the mall. Oloo also denied conspiring to defraud LBDA Sh667 million for construction, development and financing of the mall.
Last month, Edermann Property Ltd MD John Zeyun Yang and his wife Zhang Jing filed a case at the Anti-Corruption High Court challenging their prosecution.
But in an affidavit dated September 5, Nicholas Kirwa, a forensic investigator with the EACC, opposed their application. Kirwa claims the agency established that the procurement of the contractor, Erdmann, was marred by irregularities.
He said Edermann failed at all stages of evaluation but was advanced to the next stage until it was recommended for award.
Kirwa cites a report from the state department of Public Works dated August 19, 2016 valuing the works at Sh3.86 billion, yet contractor had been paid approximately Sh4.5 billion.
He said the contract that was entered between the LBDA and Erdemann had a modifications that favoured Erdemann and exposed the authority to risk.
Prosecutor James Kihara did not oppose the suspects being released on bail but urged the court to consider the seriousness of the offences. Magistrate Douglas Ogoti subsequently granted Oloo, LBDA managing director Peter Aguko and the MP Sh10 million bail or Sh30 million bond.
The magistrate directed the suspect not to approach witnesses as their offices are scene of crime. He said they can only visit with the permission of the investigating officer.