Kenyan taxpayers could lose more than Sh17 billion to a Chinese company over the cancellation of a tender awarded to it.
The firm, ACEG-CAT JV is demanding Sh17.6 billion from the government following the cancellation of a contract to construct Greenfield Terminal at the Jomo Kenyatta International Airport (JKIA), citing losses.
The company had already received a down payment of Sh4.3 billion before the tender was canceled, meaning taxpayers could lose a total of Sh21 billion.
The Business Daily reports that the firm is demanding Sh2 billion for the preparation of bill of quantities (BOQ), Sh2.4 billion as extra costs and Sh708.2 million in Value Added Tax (VAT).
The company is further seeking an additional Sh5.6 billion for the balance of contract for the BOQ and Sh500 million in accrued interests.
The government canceled the Sh64 billion contract in March 2016 despite spending a staggering Sh75 million in groundbreaking ceremony, which was presided over by President Kenyatta.
In canceling the tender, Kenya Airports Authority (KAA) said there was a material difference between the terms of the request for proposal (RFP) and the construction contract.
PriceWaterhouseCoopers (PWC) pocketed Sh7 million for securing financier of the project while Louise Berger walked away with Sh129.9 million for consultancy services.
Appearing before the National Assembly’s Public Investment Committee on Thursday, KAA Managing Director Jonny Andersen said the agency will not pay the amount demanded by the Chinese firm.
Andersen says the authority has instead made a counterclaim for the Sh4.3 billion already paid to ACEG-CAT JV.
He also says that Infrastructure Cabinet Secretary James Macharia has taken up the matter and is in discussions with the Chinese firm.
How inept is this. If this…
How inept is this. If this happened in a private company the CEO would be sent packing ASAP but the boy in statehouse is still strutting around. Worst president!
Who hands out these billions…
Who hands out these billions just like it is his mother’s? Excuse my reference.
Aiii stupidity cannot start…
Aiii stupidity cannot start to describe the wastage here, that money could have constructed how many hospitals and medicine or schools with computers? hii upusi will never end bila revolution. The cash is most likely ending up with kenyan thieves colluding with chinese firms
So many con artists in the…
So many con artists in the government. The fleecing of Kenyans continues. Con games as usual. Zero accountability, zero consequences. That is the country we have. They steal billions and move on to the next con game. Poor Kenyans.
If the tender was only at…
If the tender was only at the level of request for proposal and not a bidding construction contract, why did you pay Chinese firm Sh4.3 billions as a down payment? Didn’t you guys ready the contract? Price Waterhouse and Coopers walked away with Sh7 million for telling you who can lend the money? And Louise Berger pockets Sh129.9 million for consultancy? Whatever that means! It’s interesting how you only deal with Chinese and Caucasians when dishing out our hard earned money. Where are Kenyans? We must believe in ourselves. We may not make great construction, but it would be our roads and our people working. Not excellent clothes but it would be our tailers having the jobs. Shoes and furniture- all should be domestic. Now we even have hamburgers, Chinese food and coffee houses that are special and trendy because they are foreign owned.Self-determination and self-reliance is our only hope. No one should do for us what we should and can do for self- no one.
This happened during…
This happened during coalition gavament ya mkora raila n president kibaki.Raila was much involved in bringing the contractor for this greenfield terminal so he should explain more hii pesa ilikwenda wapi na hii wanaitisha itaenda wapi.Kenyans we need to start revolution n finish this thugs otherwise we will not have any country left for our children.Kenya will slowly go dwn with lots of debts the way majority of western world countries n europe have done.We will b forever b slaves of working like slaves paying bills like donkeys n never own anything like the western world lifestyle
We have incompetent leaders…
We have incompetent leaders. The Dynasties need to get off the way for Kenya to get started on its road to recovery. We are being colonized by a new power, right before our eyes. New colonizers who work together with our incompetent leaders to steal from our people.
Who told these leaders that we need new roads and airports while our citizens are dying of hunger?
How do you spend 75 million on a ceremony for something you are not sure you will accomplish?
How do you pay foreignors consultation fee of 129.9 million while you have locals who are CPA’s; financial consultants; lawyers and Engineers?
How does a Chinese firm ask for 500 million of accrued interest on something that was cancelled?
How does one pay a down payment on anything when the terms of the contract are not clear or agreed upon. (Don’t we have local lawyers who can review such)
Our relationship with our incompetent leadership and our new colonizers will not end up well or in harmony. It will soon call for Mau Mau to stand up for our country and our values that are being eroded by a few individuals through corruption using international corporations and foreigners.
Kenya does not need new roads; bridges; advisors or experts. The
experts are experts in their country and in their own affairs and we are experts in our own affairs? We should have learned by now. The ICC (International Colonial Court) came out empty handed after wasting our people time and resources for seven years. ( They called themselves experts)
Kenya should have a new policy. Kenya should buy what we can see and touch and we cannot produce locally. Anything else, sell it elsewhere. No selling religion- that means nothing- people can read bibles; Koran and Torah for themselves- they do not need interpreters who steal their money every sunday; useless books; stop paper movers ( who produce nothing); no stock market ( that produces nothing) ; no unnecessary banks- that produce nothing; no financial advisors- No lobbyists and no foreign ( future poisoning food chains ).If you have nothing tangible to sell, don’t sell it in Kenya.
We need to wake up and say no to slavery whether its coming from within (our current leader) or from without (foreigners and mult- corporations).
The question is “do we even…
The question is “do we even have a country?”. Having studied African diaspora for only a semester, I came to the mind numbing realization that African leaders SOLD africans to slavery. They either did it knowingly or out of ignorance. In either situation the outcome was the same: the people who were captured did not even know they had been sold months before. It is happening now live in Kenya. National assets are being collateralized in the shadows. the SGR is only kenyan in name otherwise it’s foreign owned and ran. Arbitration on any of these contracts have been transferred to unknown entities in BEIJING. Even meetings and contracts are signed offshore in the middle of the night. In such a scenario where our leaders are summoned to Beijing to be arm twisted into signing away their motherland and its children little by little, how can we even be sure there is anything left to call ours?
Because the level of…
Because the level of negotiators is to low to understand the contract . REASON the appointments for such people is not by knowledge, competence but because of a corruption , politics and who is who . we voted for idiots to lead an govern we should not complain we followed same procedure – kamwana our own etc
Kenyans should stop voting…
Kenyans should stop voting in tribal grounds but performance. The constitution should rule not the elected leaders. If a leader is found guilty should be prosecuted and jailed. Uhuru should explain why he started this project and now he is canceling it! They have found out that the contractor is not sharing the money with them as they thought in the beginning. They cannot corrupt the contractor and now they want to cancel the tendor?!