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ELECTION 2022

Geothermal Development Company board disowns CEO’s claims

COUNTIES
By By GEOFFREY MOSOKU | Mar 19th 2014 | 2 min read

By GEOFFREY MOSOKU

The Geothermal Development Company (GDC) Chairman Simon Gicharu appeared before the Parliamentary Investment Committee (PIC) and disowned documents that had earlier been tabled before the same committee by his Chief Executive Officer Silas Simiyu.

Mr Gicharu, accompanied by members of the board, insisted that what he was tabling before the committee was the genuine document as he made more allegations about irregularities in the procurement process at GDC.

Board member Stephen Njiru Njiru confirmed to the MPs that he had prepared the ‘dossier’ as chairman of the Governance Committee telling the MPs that the CEO Silas Simiyu had violated procurement laws.

Gicharu reiterated his claims that contrary to what the public believes, GDC has only been able to produce 21MW and not 70MW as stated by the CEO.

Due to the bulkiness of the documents tabled, the committee postponed the meeting and said they will invite the board at a later date to clarify issues rising from their report.

Apart from Njiru, members Joseph Kinyua, Stanley Kamau, Paul Ngatia, Kariuki Muchemi, Sally Towett and James Okwero accompanied Gicharu. Kanduyi’s Wafula Wamunyinyi and his Kiminini counterpart Chris Wamalwa took the GDC chairman to task to explain whether had chaired any board meeting to generate the dossier.

Keynan also asked Njiru why he had not raised issues of mismanagement and irregularities having served in the board since February 2012.

Earlier, PIC was informed that GDC has not taken any loan from financial institutions or donors.

Instead Dr Simiyu told the MPs that the corporation is fully funded by exchequer since its inception in 2009 and does not have its own revenue to repay loans.

Simiyu said although the corporation may benefit from loans rendered to the State, the parastatal only receives the same from Government as a grant.

He said GDC has since 2009 received Sh52 billion both from donors and the exchequer.

The monies include Sh23.21 billion from donors and Sh28.61 billion shillings from the Government.

“GDC receives funding from the Government of Kenya in terms of exchequer annual budgetary allocations and grants from loans procured by the State. GDC does not have the financial capacity to secure loans,” Simiyu said.

The MD had been summoned following reports on boardroom wars between him and newly appointed chairman Simon Gicharu.

 Mr Gicharu had raised issues of alleged irregularities in procurement and mismanagement through his letter to the Head of Civil Service Joseph Kinyua on March 5.

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