The Directorate of Criminal Investigations will this week question former Treasury CS Henry Rotich and ex-PS Kamau Thugge over the stalled Sh38 billion Itare dam project.
The duo is facing charges over the Kimwarer and Arror dams scandal.
The Star on Sunday learnt that the two are expected to reveal who authorised an advance payment of Sh4.3 billion to the now-defunct Italian contractor CMC Di Ravenna in relation to the Itare project.
“We are about to conclude investigations into this issue. We want to speak to the two since they were in charge when some decisions were made,” a senior DCI investigator said.
Detectives also want to know why the payment was made despite knowledge that the Italian company had applied for bankruptcy.
CMC Di Ravenna has refused to refund the money, arguing that it was indemnified by a clause in the contract signed with Rift Valley Water Services Board — the executing agency in the project.
“The employer shall indemnify and hold the contractor harmless against and from all damages, losses and expenses, including legal fees and expenses resulting from a claim under the performance security to the extent to which the employer was not entitled to make the claim,” clause 4.2 of the contract states.
Furthermore, Rotich and Thugge will be quizzed on the terms of a 2015 loan agreement between the National Treasury and BNP Paribas Fortis and Intesa Sanpaolo of Italy.
Some of the advance money was paid through Heritage Insurance, which acted as a guarantor.
They will be expected to explain whether the loan guaranteed was secured and whether the government can recoup the advance payment to CMC Di Ravenna.
Investigations into the project — which began last year — have so far netted in more than 20 people.
Among them is former Water CSs Eugene Wamalwa (now Devolution) and Labour CS Simon Chelugui (then Water CS).
Also questioned was Lydia Ntimama, the daughter of the late Cabinet minister William ole Ntimama, who was a board member of Rift Valley Water Works Development Agency.
Itare dam project is one of the flagship projects under the National Water Master Plan that seeks to improve water resource management in the country.
The 57m-high dam was expected to serve approximately 800,000 residents of Molo, Kuresoi, Njoro, Nakuru town and Rongai with 100,000m3 of water per day.
Expected to be complete by April 2021, the project stalled after CMC Di Ravenna applied for bankruptcy in an Italian court in 2018.
By the time it was winding up its operations in Kenya, the contractor had only completed 30 per cent of the project.
RVWWDA is now sourcing for a new contractor to complete the project — a process that could take an additional 18 months.
Rotich and Thugge are out on a Sh15 million bail after being arraigned before the Milimani law courts over abuse of office charges in July last year.
The two were among 28 people who were arrested and prosecuted for their role in the misappropriation of approximately Sh63 billion meant for the construction of Arror and Kimwarer dams in Elgeyo Marakwet county.
Rotich was charged with two counts of abuse of office, whereas Thugge faced five.
