Nairobi’s City Hall allowed to probe firm’s Sh1bn claim

By Isaiah Lucheli

KENYA: Nairobi County Government will conduct a forensic audit of the controversial Sh1 billion being claimed by a firm associated with Embu Senator Lenny Kivuti.

This follows a court judgment, which authorised the probe, to enable the county authority to defend the hefty compensation claim by Geomaps Africa Ltd for alleged electronic management services.

Geomaps is claiming Sh1,003,912,624 for rendering services which linked the defunct Nairobi City Council’s cash office and the rates section five years ago, which included accrued interest.

Unclear contract

The council had claimed in court that the contract was not very clear on the modalities of computation of the total amount invoiced to the council for payment by Geomaps.

At the same time, High Court judge George Odunga dismissed an application by three former NCC councillors — Ibrahim Dakane Rafat, Paul Simba Arati and Alex ole Magelo — seeking to compel county government officials to terminate any negotiations with the aggrieved firm.

In their application, the three had expressed apprehension that the whole process was dogged with controversy and that certain overtures had been made between undisclosed interested parties to settle the hefty claim without following the laid down procedures.

The contract between the city council and Geomaps was terminated during a Special Full Council meeting on August 8, 2008.

Geomaps had protested that the City Hall was still using its software and database without paying for the services long after the contract was terminated.   

The council resolution had sought for the audit in order to establish a lasting way of resolving the long-standing dispute adding that some issues in the contract were not clear.