Intense lobbying as debate on the De La Rue printing contract starts

By Martin Mutua          

Transport minister Amos Kimunya and Central Bank of Kenya Governor Njuguna Ndung’u were put on the spot as Parliament began debate over the controversial Sh1.8 billion De la Rue money printing scam.

And there was intense lobbying ahead of the Motion with reports that Acting Head of Civil Service and secretary to the Cabinet Francis Kimemia allegedly had been urging members considered to be “friendly” to turn up in the House to support Kimunya.

In a short message service seen by The Standard from one of the MPs, Kimemia urged the MPs to support Kimunya.

“Pls be in bunge and request you to support hon Kimunya,” read the sms from Kimemia to the “friendly MPs”.

There was tension in the House when Public Accounts Committee Chairman Dr Bonny Khalwale moved the eagerly awaited report declaring that both Kimunya and Ndung’u were unfit to hold public office as per the recommendation of the committee.

“The two are like Siamese twins held at the hip and if you save one, you save the other, if you remove any of them then you remove the two. They are enjoined,” said Khalwale who was interrupted severally by the “friendly MPs”.

Single sourced

He told the House that the former Finance minister David Mwiraria cancelled the money printing contract when the Narc government took over power because the process of awarding it was not competitive and was single sourced.

“It was the time the Narc government had taken over office and patriotism was flowing in the veins of people like Mwiraria that is why he cancelled the contract for a competitive process,” he added.

The contract was then advertised where De la Rue clinched the deal to print the currencies at their company in Malta which would have been three times cheaper.

However, Khalwale stunned the House when he said the moment Kimunya took over at Treasury after Mwiraria he went ahead and cancelled the De la Rue contract in total disregard of advice by the acting Governor Jacinta Mwatela.

And De la rue did not complain because they knew with the cancellation they would revert to the old and expensive venture at their Ruaraka plant.

Khalwale further told the House had the international tender been carried on the notes would have even been smaller with more secure security features but that was never to be.

Khalwale tabled a letter by Kimunya which he had instructed Mwatela to cancel the contract and wondered if it was not for “sharing and looting the spoils”. “Why was Treasury poking its nose into the contract yet they were not party to it?” he posed

The PAC boss told an attentive house that owing to the refusal by Mwatela to Kimunya’s moves she lost her job.

“Jacinta Mwatela in her patriotism defied Kimunya and that is how she lost her job as the acting Governor and they brought in Njuguna Ndung’u as the matter became complex,” he added.

Khalwale further said due to the sensitivity of the matter Mwatela requested for security for her to be able to come and testify before the committee and they even had to take her evidence in camera.

He further noted that the moment Prof Ndung’u took over as governor things began to unravel as interim orders started flowing one by one.

While citing a special audit report Khalwale said the Auditor general had recommended that Kimunya be held responsible and culpable for the loss of the Sh1.8 billion. Khalwale also told the House that when the De la Rue officials appeared before them they boasted of undertaking over 30 jobs of money printing for various government in Africa.

However. Khalwale noted that when his committee visited the company at their Ruaraka premises, the directors of the company were unable to produce even a single order that they were undertaking.

“They didn’t even have the orders they had told us yet we want to pump millions of taxpayers money without having to carry out any audit,” he added.

Khalwale said the technology and equipment at the De la Rue company was archaic and that the only thing they have is the land.

He disclosed that currently the Government was paying millions for the cancelled Kenren contract for the supply of fertilisers to the Government which they had cancelled during the Kenyatta regime for breach of contract.