Treasury Cabinet Secretary Henry Rotich to Spend Night in Police Cell

Treasury Cabinet Secretary Henry Rotich and Principal Secretary Kamau Thugge will spend Monday night in police cells ahead of arraignment in court on Tuesday.

The two were arrested on Monday in connection with the loss of billions of shillings in the Sh63 billion Arror and Kimwarer Dams projects in Elgeyo-Marakwet County.

Rotich and Thugge presented themselves to Directorate of Criminal Investigations (DCI) headquarters in Nairobi hours after Director of Public Prosecutions (DPP) Noordin Haji ordered for their arrest.

Haji also directed the arrest of 26 other officials from National Treasury, Kerio Valley Development Authority (KVDA), and National Environment Management Authority (NEMA) over the scandal.

DPP Haji said procurement procedures were flouted and the law bent to ensure bankrupt Italian company CMC di Ravenna was awarded the lucrative tender.

“Upon investigations by the DCI, it was established that the conception, procurement and payment process for the Arror and Kimwarer Dam projects in Elgeyo Marakwet County were riddled with massive illegalities,” said Haji.

 “The investigations established that government officials flouted all procurement rules and abused their oath of office to ensure the scheme went through.”

Haji said the initial contract signed between KVDA and CMC stated that the two projects would cost a combined Sh46 billion but the Treasury negotiated a commercial facility, increasing the amount to Sh63 billion.

“Of note, out of the Ksh.63 billion in respect of the projects, as at January 2019, the government of Kenya has made the following payments: advance payment, commitment fee, insurance and other costs totaling Ksh.19,714,366,991,” he said.

Sh4.6 Billion more was borrowed in addition to the principal amount to pay interest in advance during the construction period, which to date has not started.
 

The suspects will be charged with conspiracy to defraud, willful failure to comply with applicable procurement procedures, abuse of office, and fraudulent acquisition of public property among others.