EACC questions Tuju, Githu in probe on Lake Basin mall deal

Agriculture Cabinet Secretary Mwangi Kiunjuri (left) with CS Raphael Tuju (centre) during a tour of Lake Basin Mall in Kisumu on September 8, 2016. [File, Standard]

Top government officials including a Cabinet Secretary have recorded statements in connection with the Lake Victoria Basin Shopping Mall.

The mall’s cost is said to have been inflated from Sh2.6 billion to Sh4.6 billion.

Sources at the Ethics and Anti-Corruption (EACC) told the Sunday Standard that CS Raphael Tuju recorded his statement with the commission on Tuesday while former Attorney General (AG) Githu Muigai recorded his on Wednesday.

Two more CS’s and their Principal Secretaries are expected to record their statements.

Former chairman

Also on the radar of the commission is the Kisumu County Assembly Speaker Onyango Oloo  who once chaired the Lake Victoria Basin Development Authority (LBDA). Oloo was at the helm when the shopping mall project was conceptualised.

So far, 65 people have either been questioned or mentioned in regard to aiding the investigations.

“I was invited by the new boss to clarify on the issue. I explained the history and what transpired,” Tuju, a former chairman of the authority told the Sunday Standard.

He said he stood his ground that no extra funds would be paid without a formal letter authorising the same from the State department of public works, the AG and EACC.

“I brought in Treasury, the Auditor General, the Attorney General, the EACC and the department of public works to conduct an audit and establish whether there was value for money,” he told the Sunday Standard.

He said that he also brought in the National Assembly Budget Committee. 

“My position was that for any extra money to be paid, a written approval had to be done from the investigating agencies,” he said.

Yesterday, Oloo confirmed having recorded a statement a few months ago. He said all relevant authorities had given the project a clean bill of health and that there was never a variation but additional works. “I think they want to balance and spread the weight in this corruption purge but if that is the case, we are ready for them. If not a witch-hunt what else could this be?” he said.

Githu also confirmed recording statement with Integrity Centre and said he had long affirmed “irredeemable procurement irregularities” in the manner the project was handled.

“It is true that I did record what I know about this project just like many others have,” he said. “We flagged all these issues long ago and gave our advice.”

The EACC is probing two issues from the project: the cost variation and the decision by the Authority to use a government instrument to secure a loan from cooperative bank without consent from the AG.

The LBDA took a loan of Sh2.5 billion from Co-Operative Bank, which was charged to the title deed of the authority’s land. Treasury had only allocated LBDA Sh1 billion to clear the debt, but the National Assembly Finance Committee secured an additional Sh1.6 billion in the 2016/17 budget.