DPP Haji wants Speaker Onyango Oloo arrested over Sh4.1b Lake Basin Mall
SEE ALSO :Poll chaos victims confront DPP HajiHaji said the Speaker alongside a former chairman of the Finance and Establishment Committee of the LBDA board, George Odawa, were bribed to inflate the cost of the building on the outskirts of Kisumu city from Sh2.5 billion to Sh4.1 billion. In a statement to newsrooms yesterday, Haji said he will also seek to take to court 27 others involved in the tender process. Complaint He said the Ethics and Anti-Corruption Commission (EACC) received a complaint on July 28, 2015 that the construction cost for the LBDA mall had been inflated. Oloo was the LBDA board chairman at the time. The DPP also accused Odawa of receiving Sh12 million from Edermann to ensure the contract was varied.
SEE ALSO :Mike Sonko, his highs and lowsWhen the mall was under construction, Haji said the LBDA irregularly approved additional scope of works in a meeting held on December 18 and 19, 2015, for additional sum of Sh620 million for construction of a showroom, tyre centre and a three-star hotel. Further, the board allegedly approved a loan of Sh1.3 billion from Cooperative Bank by the contractor, hence enhancing the borrowing to Sh2.5 billion, despite the fact that the contractor had promised to finance 80 per cent of the project. Consequently, a deed of variation was signed by then LBDA Managing Director Peter Abok and Oloo on February 17, 2015, varying the amount from Sh2.5 billion to Sh3.8 billion without the approval and concurrence of the National Treasury. This, Haji said, constituted a 57 per cent variation against the prescribed 25 per cent under the Public Procurement and Disposal Regulations 2013. Variation Following the variation, the DPP said without approvals, Abok and Oloo irregularly executed three charges over LBDA’s land titles LR No 15239 and L.R No 150443, dated March 13, 2014, January 19 and May 29, 2015 for Sh2.5 billion from Cooperative Bank.
SEE ALSO :Company directors being pursued“This singular act exposed LBDA’s property to the risk of sale in case of a default in the repayment of the loan. The charging of the LBDA property without approvals from the line ministry and Treasury was unlawful,” reads the DPP’s statement. Haji said upon review of the file, he found that whereas three firms submitted their bids after LBDA advertised for the tender, all the firms were found non-responsive. However, instead of rejecting their bids as required by the Public Procurement and Disposal Act 2005, the evaluation committee recommended to the tender committee the award of M/S Erdermann Property Limited (EPL). The tender committee awarded the tender on March 14, 2013. Subsequently, on April 8, 2013, Abok and the his then chairman David Oyosi executed the contract on behalf of the government agency, while Zhang and Yang executed for Erdermann for Sh2.45 billion. [email protected]
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