Kenya is aiming at making history in loans. Not only do Kenyans have a back load of debts to pay but apparently there also exist ghost loans in our ministries that is seeing a cat and mouse game being played.
Mystery surrounds a Sh30 billion commercial loan for a security system to guard a proposed crude oil pipeline after the Energy ministry confirmed it had been signed while the National Treasury disowned it.
Treasury Principal Secretary Kamau Thugge said he was not aware of such a loan despite the Energy ministry, which signed the agreement early last year, maintaining that the contract had been submitted to his office.
Mr Thugge’s position that there was no such loan negotiation deepens the questionable circumstances under which government officials purportedly committed to borrow such a colossal sum of money for security years before the design of the proposed pipeline from the Turkana oilfields to the Lamu Port is submitted.
The Sunday Nation reports to have seen a copy of the commercial contract signed between Rafael Advanced Defence Systems Ltd, an Israeli security systems manufacturer, and then Ministry of Energy and Petroleum under Cabinet Secretary Charles Keter on February 15, 2017 at Nyayo House, Nairobi.
Petroleum Principal Secretary Andrew Kamau, who signed the contract on behalf of the Kenyan government, did not deny its existence but said it was still being finalised by the Treasury.
Mr Kamau defended the “early negotiations” for the loan long before Kenya’s crude pipeline specifics have been consolidated.
“Yes, the process is at Treasury. We already know the pipeline is 821 kilometres and how many pump stations will be there so there should be nothing wrong with planning its security. Don’t forget the loan is also for the security system for the existing pipeline,” Mr Kamau said.
With the crude pipeline cost projections having been revised down to Sh100 billion, it now means the cost for its security system will be one-third of the total construction bill.
Kenya opted to build the pipeline alone after Uganda dropped an earlier agreed joint plan and went for an alternative line through Tanzania.
Mr Keter, the Energy Cabinet Secretary, has said the loan negotiations had moved to the Treasury after the February signing. He was a witness in the contract.
Mr Thugge denied the existence of such a loan, sending the Sunday Nation back to the Energy ministry.
“It is not true. Recheck with the ministry (of Energy) on the precise status. The financial end of the deal is not with us,” Mr Thugge said.
Documents sent by the Israeli Bank Hapoalim as late as October 2017 however show that Mr Thugge was copied in the communication.
Who do you think is lying in this story?