How dams tender loopholes sunk taxpayer in Sh63 billion loan

Tender blunders in the construction of three dams worth billions have seen the county lose money to a contractor who received fat loans guaranteed by the government of Kenya.

Investigations into the matte have unearthed major loopholes that cushion the contractor while sinking the taxpayer.

A significant proportion of the Sh91 billion meant to fund the dams has already been paid and at stake are huge loans the contractor borrowed.

The financial position of the contractor is in question yet the company has been guaranteed by the Government, meaning the loans will be repaid by Kenyans.

One of the shocking findings is CMC Di Ravenna, which is expected to deliver the dams that have since stalled amid corruption claims, never entered into any contract with Kenyan agencies.

Instead, different tender documents were signed and brought by various companies from Italy, South Africa and Kenya.

In one instance, a Paulo Porcelli signed a contract for the Sh38.5 billion Kimwarer Dam in Elgeyo Marakwet, but as a representative of CMC Di Ravenna South Africa.

Mr Porcelli also signed as the agent in the Sh28 billion Arror Multi-Purpose Dam, also in Elgeyo Marakwet.

CMC di Ravenna South Africa was never party to the contract entered into between project employer, Kerio Valley Development Authority, and the contractor. The project was to be executed jointly by CMC di Ravenna and Itinera.

Legally, the entities are different and responsibility for decisions made by one cannot be extended to the other, a proposition further buttressed by the fact the documents were signed by different people.

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