Mega Corruption Scandal Haunt Kenya Railways’ CEO as Activist Took Him to Court


By Reporter

The President of Bunge La Mwananchi Francis Awino has taken the managing director of Kenya Railways to court over Irregular overpayments of huge amount of taxpayers’ money to construction company.

In the petition, the activist wants an inquiry into why Kshs. 777 billion was overpaid to China Roads and Bridges, the suppliers of facilities and rolling stocks during the construction of Standard Gauge Railway (SGR) by the state department of transport.

The State department is said to have allocated Sh.97.3 billion for the construction of the Mombasa Nairobi SGR seven years after the completion of the project.

Documents tabled before the Senate wants the lawmakers to also establish the authenticity of the amount spent to develop SGR, which he claims was aggregated to Sh.1.18 trillion notwithstanding that the contract sum was Sh.407billion.

“The amount spent to develop SGR aggregated to Sh.1.18 trillion notwithstanding that the contract sum was Sh.407 billion indicating that China Roads and Bridges and the suppliers of facilities and rolling stocks were overpaid by Sh.777 billion. The SGR project was schemed by China Road and Bridges Corporation which benefitted the Chinese at the expense of Kenyans. The Respondent has failed to establish the authenticity of Sh.63.9billion expenditure by the National Treasury for the development of Nairobi-Naivasha SGR, whereas work on that part of SGR was completed and commissioned in December 2019,” reads the petition in parts.

According to Fraud Risk Management Consultant further alleges that the SGR project did not meet the criteria for a public project neither did the contract and related debt qualify as a public contract and public debt.

Latest report from National Treasury debt register shows three loans 2024006, 2014008 and 2015023 aggregating to Sh.466.41billion ($5.08billion) from Exim Bank of China.

The parastatal in its financial statements shows aggregate receipt of Sh.539.27billion loans as of June 30, 2020 from the Exim Bank of China and the State Department of Transport in its Appropriation Act (Budgets) up to the June 30, 2021 financial year shows Appropriation in Aid (AIA) aggregating to Sh.387.9billion from the government of China.

“There is inconsistency in loans relating to the SGR as reflected in the books of the National Treasury, State Department of Transport and Kenya Railways Corporation (KRC) in terms of the lender and the amount,” further stated the petitioner.

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