Marende orders Kimunya probe over Sh56bn airport saga

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Transport minister Amos Kimunya. House Speaker Kenneth Marende has ordered investigations into the Sh56 billion contract for a new airport August 16, 2012  NATION MEDIA GROUP

By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com
Posted  Thursday, August 16  2012 at  17:08

IN SUMMARY

• Three House committees given 14 days to complete investigations.
• MPs question Transport minister Amos Kimunya's intention to cancel contract.

House Speaker Kenneth Marende has ordered investigations into the Sh56 billion contract for a new airport.

Transport minister Amos Kimunya Thursday failed to convince Parliament that his push to cancel the deal was procedural, prompting Mr Marende's directive.

MPs had so many queries about the airport deal and Mr Kimunya’s unilateral and controversial decision that the Speaker referred the matter to three House Committees, the one on Transport, the one on Budget and the one on Finance, to ensure that it is investigated fully.

The three committees have 14 days to report back to the full House.

Mr Marende said this was an “urgent matter” that touched on the country’s development and standing in the region as an investment hub.

“We have to move quickly, otherwise we’ll become irrelevant,” Mr Marende told MPs, noting that South Africa, Rwanda and Ethiopia all had plans to modernise their airports to ensure they became trade and investment hubs.

Mr Kimunya was under siege from MPs who questioned his intention to cancel a contract, whose procurement had been cleared, not only by the Attorney General Githu Muigai, but also by the Ethics and Anti-Corruption Commission.

It emerged that Mr Kimunya had ignored the advice of the Cabinet subcommittee on infrastructure, that of the AG, and another from the Office of the Prime Minister.

MPs charged that the minister’s obstinacy had drawn complaints from President Kibaki’s Office and the secretary to the Cabinet Francis Kimemia.

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“In my opinion, it is in bad taste and disrespectful to the Cabinet to attempt to compel the Managing Director to undertake such action (cancellation of the contract) behind the Cabinet Committee and the Cabinet itself,” wrote Mr Kimemia, to the KAA Board on July 27.

Stop procurement process

But Mr Kimunya maintained that the board of the Kenya Airports Authority had met in February this year and resolved that the procurement process be stopped.

"The project cost had moved from the estimated maximum of USD500 million to USD653 million, and no approval had been sought from the board,” Mr Kimunya told MPs.

"So far, there’s no agreement with the contractor and since there are no signed contracts, we do not anticipate the government to incur any loss."

He insisted that the AG had written another letter with the opinion that the matter be referred to the Public Procurement Oversight Authority for final directions.

MPs Charles Keter (Belgut), John Mbadi (Gwassi), Adan Duale (Dujis), Charles Kilonzo (Yatta), David Ngugi (Kinangop) and Jakoyo Midiwo (Gem) cornered the minister, tabling the opinion of the Attorney General, which warned of heavy payments to Anhui Construction if the contract was terminated.

Mr Keter revealed that Mr Kimunya had packed the board with “directors from one region” who sat in July and pushed for the termination of the contract, but the Managing Director of the KAA, Stephen Gichuki, refused to sign the minutes.

"The managing director did not sign the minutes, he said the Attorney General gave an opinion which he did not want to go against. The board has no say in the tendering process…” said Mr Keter.

The Belgut MP asked Mr Kimunya to declare whether he had links to another Chinese firm –“China Construction Engineering Cooperation, and whether he knew a James Gachoka, chairman of Appeals Board, and whether he’s talked to him concerning this case”.

Mr Kimunya replied: “I’d have no interest in a company owned by the Chinese government. I don’t know them, I have not met them, unless the member has been sent by them to me, then he can give me further details on who they are and what they want. Our relationship with Mr Mwaniki Gachoka is personal and not based on his work at the PPOA board.”

Baffled

The minister said he was baffled by the speed with which the contract was awarded, the winning bidder notified and process of financing initiated. Efficiency is alien in government circles.

“The KAA fast-tracked the evaluation at a speed that has never been seen,” said Mr Kimunya.

But Mr Baiya posed: “We want to know why the minister has deemed the procurement process as being wrong merely because the process was fast-tracked, whereas the whole process was given a clean bill of health by the concerned institutions?”

“Development is actually an entitlement in the country. Why is he denying Kenyans the right to a new modern airport terminal,” added the Githunguri MP.

Yatta MP noted: “The minister has become totally allergic to any advice from government institutions. We have shown you seven different letters saying that there is nothing wrong with the procurement, and it is only you, who is not a lawyer, who is giving an advice which nobody seems to understand.”

Mr Linturi caused laughter in the House when he noted that Mr Kimunya “always in a circle of controversy”. He sought to know if Mr Kimunya would meet the bill for damages caused by “his reckless action” to terminate the airport contract.

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“The Kenyan taxpayer will not continue meeting the expenses as a result of his negligence,” said Mr Linturi, the chairman of the Public Investments Committee in Parliament.

Mr Kimunya said that the whole controversy about his decision to cancel the airport contract was because “corruption was fighting back” as MPs sneered..

“I am at the heart of ensuring that we get the best terminal for this country. Because this matter is huge and exhaustive, I’d rather we process this through the Transport Committee, so that Kenyans get to know what’s going on.

"I am committed to ensure that we break ground before the end of this year. We cannot be held at ransom by one contractor,” said Mr Kimunya.

“I am willing to see the process is restarted and a better value than what is being put here. When you speak the truth, you step on so many toes, and corruption has a way of fighting back. This is one case. I will continue fighting back.”.