The awarding of the tender to the Italian Firm to construct Arror and Kimwarer dams was inked through a controversial deal as exposed by the Former Attoney General Githu Mwigai.
Former Attorney General Githu Muigai has told police that the Treasury headed by CS Henry Rotich ignored his legal advice against signing a deal with CMC di Ravenna to construct the Arror and Kimwarer dams.
Githu told the DCI investigators that he wanted the deal signed only after due diligence had been done on the Italian firm’s financial and legal status.
However, despite the Attorney General’s strong legal opinion, Treasury officials and the KVDA management inked the controversial Sh65 billion deal, exposing the country to possible massive financial losses.
“He did a self-recorded statement as a witness in the matter,” a source speaking on condition of anonymity said.
“They (KVDA and Treasury) were in violation of the advice by the AG,” Githu is reported to have told the investigators.
The ex-AG who resigned on February 13, 2018, after a six-and-a-half years stint at the State Law Office, said due diligence was not conducted on the CMC di Ravenna company before the contract was sealed.
That company has encountered financial problems amid fears that the Kenyan contracts may not be executed.
Githu, according to investigators, received a request from the KVDA seeking his legal opinion on the construction of the two dams in March 2017.
In September, KVDA wrote to the AG’s office, saying that they were not in a position to conduct due diligence on the company that was to undertake the construction, yet the contract had already been signed in April 2017.
This was also seven months after the former AG had warned against the signing of the agreement without a due diligence report that would have revealed the financial position of the troubled Italian firm.
Yesterday, DCI chief George Kinoti, in an indirect reference to the former AG’s statement, said investigators were “now a step away from the start of major arrests”.