Agriculture Minister William Ruto was in a spot over a deal to supply gunny bags worth more than Sh100 million to the national grain handler involving an insurance firm associated with him.
Ikolomani MP Bonny Khalwale claimed African Merchant Assurance Company (Amaco) was involved in the deal worth Sh153 million together with an Indian firm to supply two million 90kg bags to National Cereals and Produce Board.
Khalwale said the managing director of Amaco had contacted the Indian company to seal the deal.
Conflict of interest
"Can the minister tell us how an MD of his insurance firm went and fronted for gunny bags?" he said.
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But Ruto, although he admitted having shares in Amaco, distanced himself from dealings involving the company saying the firm’s management should be held responsible for their actions.
"It is a private enterprise that I happen to have shares in the same way that I have in Kenya Airways and Safaricom. If there are actions that are done by the management, they should carry their own cross," Ruto said.
He alleged conflict of interest claiming the minister was privy to a tender pending at the ministry worth Sh500 million and questioned the timing of Amaco’s entry into the tendering.
The MP tabled a copy of an e-mail communication in which the Indian firm had indicated to the MD that the offer for the $0.97 per kg was valid until July 31.
"We have sent the message to the MD of Amaco," Khalwale read the document.
