•Treasury put on the spot for feigning ignorance on the delayed refund.
•Energy ministry to face PIC to answer the queries.
Image: EZEKIEL AMING'A
The National Treasury is not aware that Kenya Power paid an extra Sh790 million to the Lake Turkana Wind Power for idle power at the Loyangalani wind farm.
Principal Secretary Julius Muia said he wouldn’t know as the money was paid by the Ministry of Energy through their budgetary allocations.
“I would have to check the record as the money was not from the consolidated fund. The payments were made by the Energy Ministry and we proposed they provide the details,” he told the Public Investments Committee chaired by Mvita MP Abdulswamad Nassir.
It emerged Tuesday that Kenya Power gave wrong account details for receipt of the refund from LTWP which had the same reversed to their bank.
MPs at the committee questioned the Treasury on why the money remained uncollected over a year since the investor requested the bank details.
LTWP wrote to Kenya Power in December 2020 seeking the details but got a response from Kenya Power a year later on November 8, 2021.
Kenya Power sought the money be paid in Euros to Standard Chartered Bank Frankfurt to account name Central Bank of Kenya through number 500040205.
On January 18, LTWP raised the issue with the power utility which has since asked the investor to wait until they get a response from the Energy Ministry.
Nassir said it was unacceptable that a state entity – cash strapped for that matter – has not taken the matter of the refund seriously.
He indicted the National Treasury for feigning ignorance on the matter yet they were copied all the communications between Kenya Power and LTWP.
“This money can pay the Chinese contractor who completed the transmission line and is yet to be paid,” Nassir said.
He raised concerns that someone could be earning interest from the said millions, which are projected to be the tune of over Sh130 million so far.
“I am surprised that you (Muia) are not aware yet you were copied. What is so hard that we cannot facilitate the issuance of bank details?” the MP asked.
“This leaves us wondering how many of such cases are out there yet the country is struggling with revenue sources… We cannot cry that this country doesn’t have money,” he added.
“If people take more than a year, give wrong details, and still take their sweet time…one month later, nothing is being done. Wouldn’t it be that someone is earning interest?”
Likoni MP Mishi Mboko, a member of the PIC, asked: “Isn’t it by design?”
Muia admitted that there was a possibility “that interest is being earned unfairly” and promised to take up the matter and furnish the committee with a response by next Thursday.
On Tuesday, Kenya Electricity Transmission Company (Ketraco) officials were hard-pressed to explain the delays that staged the extra costs.
MPs further raised concerns with the Treasury revelations that it does not take due diligence on banks recommended by foreign governments.
“We rely on the foreign government and the fact that all banks are regulated within an international framework. We take it that the bank is certified in that country,” Muia said.
This was even as MPs also sought clarification on the extent to which the government was exposed in the face of its letter of support to the wind farm investors.
But Muia played down any potential liability, saying they did not issue a sovereign guarantee but a letter of support.
“Letters of Support are a gentleman’s agreement. They are not a financial obligation hence not claimed and are not part of public debt,” the PS said.
The question followed the submission of the Attorney General that the letters were only brought to them for concurrence, not to advice.