Investigators handling files used to award contracts to an Italian firm contracted to build two mega dams in the rift insist that after examining documents obtained from Treasury, Sh20.9 billion was paid to the contractor for the two projects.
But according to Kerio valley development Authority (KVDA), the money paid off to an Italian dam contractor was Sh7.6 billion.
However, detectives who had camped in Italy to seek help in investigations arrived back in the country on Tuesday with a chilling details over the dealings with the foreigners.
Experts looking into the details have revealed that Kenya paid 15 times over the fair rate to an Italian Government-owned credit insurer for insuring the loans procured from a consortium (several banks joining together as a group for a shared purpose) of banks led by Intesa San Paolo.
Such insurance arrangements are supposed to guarantee that the loan would be settled in case the borrower(Kenya) is unable to repay – including in cases of retrenchment or death of individuals.
The two projects are being investigated by the Directorate of Criminal Investigations (DCI) in the wake of claims that State officials connected to the project accepted bribes.
In the Arror dam case, detectives say, an advance payment of Sh4.5 billion was made. Another Sh6.1 billion was paid to an Italian insurance firm, SACE S.p.A, and a commitment fee of Sh490 million was also paid, making it a total of Sh11.1 billion.
The team of detectives that had flown to the European nation to meet with SACE officials were handed a copy of the insurance agreement written in Italian thus forcing them to seek the services of interpreters.
National Treasury Cabinet Secretary Henry Rotich was questioned by detectives to explain why SACE charged 17.5 per cent of the loan amount as premium when industry rates averaged 1.5 per cent.
Rotich said his ministry was not involved after the processes of project identification, prioritisation and procurement were completed by the line ministry and the implementing agency, Kerio Valley Development Authority (KVDA).
The Cabinet Secretary also acknowledged that he released Sh7.8 billion to KVDA for onward transmission to CMC di Ravenna, the contractor, as advance payment to help kick-start the project.
Some of the investigation files had been sent to the Director of Public Prosecutions (DPP) before being returned to the Directorate of Criminal Investigations to have the new information appended.
At least four charges are awaiting individuals, including top Government officials found culpable by investigators. The charges include conspiracy to commit an economic crime, aiding the commission of an economic crime, abuse of office and negligence of official duty.