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Parliament raises queries on Sh825m KenGen deal

By | October 27th 2011

By Standard Team

MPs have raised questions over Sh825 million power generating equipment deal following credibility issues raised over a Norwegian company contracted to supply mobile steam power generators.

Parliament’s Energy Committee raised serious claims over the procurement of the equipment, with Rangwe MP Martin Ogindo comparing the contract to past scandals like Anglo-leasing.

Power generating company KenGen is accused of engaging in a contract with a company with no capacity to manufacture the equipment (known as well-head generator), thereby occasioning supply of defective components of the power generators. A turbine of one of the containerised well-head generator (used to generate steam energy) supplied by Green Energy Group (GEG) turned to be defective and has been returned to the manufacturers. It emerged GEG contracted an Indian company to make the turbine and following the defect, GEG is now turning to another manufacturer for a new turbine.

KenGen has paid Sh349 million to GEG and the said company would replace the turbine at its own cost as per the contract agreement and would now contract a company in Iceland to manufacture the turbine.

The development took an interesting turn when Uriri MP Cyprian Omollo sensationally claimed that a Mr Waweru Njoroge is listed as one of the directors of the Indian company, eliciting protests from KenGen Managing Director, Eddie Njoroge.

"I got a son called Waweru Njoroge and what is coming from the honourable member is unfortunate," Njoroge told the James Rege-led Committee.

Committee member and Kibwezi MP Philip Kaloki also came to the support of Njoroge arguing it was unfair for Omollo to name someone without evidence linking him with the said company.

Wajir West MP Adan Keynan, however, said Omollo’s sentiment couldn’t be dismissed in its entirety and called on KenGen to avail names of the directors of the companies involved in the deal to clear the air.

Rege then ruled that the names be made available when the committee next meets KenGen. In the meantime, Omollo was forced to withdraw his remark.

Cherangany MP Joshua Kuttuny also called for the naming of the directors of the company, "so that we know if there is a scandal".

—Reports by Peter Opiyo and Steven Mkawale

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