An official from the East African Development Bank (EADB) on Wednesday admitted that they failed to honour a Sh294m deal with former CS Raphael Tuju.
This emerged even as he was put to task over alleged contradicting statements he made regarding what transpired in the disputed Sh2.2 billion loan advanced to Tuju.
In one of the affidavits, Washington Odongo said the loan advanced to Tuju was single-phased, and in another statement before the DCI, he said it was two-phased.
The loan was meant for constructing a Sh100 million two-storey, flat-roofed bungalow and purchasing a 94-year-old bungalow built by a Scottish missionary.
The bungalow currently operates as a high-end restaurant.
The court heard that in the statement made before the DCI regarding the case, Odongo confirmed that the first tranche of the facility was nine million dollars for the acquisition of land, which was disbursed.
The second phase he said was Sh294 million which was for rehabilitation of existing structures and construction of some villas. But this Sh294 million he wasn't disbursed.
Odongo explained to the court that the affidavits in question were prepared by their team of advocates and were only given to him to sign.
"I trusted the guidance and opinion of the bank's counsel to assure me I was signing in good faith," he said.
His averments confirm what Tuju stated in that the $9.1 million was provided for the acquisition of the property but the balance of Sh294 million which was meant for the construction of high-end residential units for sale was never disbursed.
Tuju says the sale of the units would have offset the loan.
The politician says further witness statement at the DCI supports his position on the nature of the facility agreement as well as the history of engagements between the parties.
The court in June this year allowed the bank official to be questioned to scrutinize and analyse the veracity of the statements made.
He will be back in court on July 31, to conclude his session.
In this case, Tuju and the bank entered into a written facility agreement on April 4 2015.
From this agreement, the Bank agreed to grant him a loan facility for $9.3 million to partly fund the acquisition and development of commercial units for sale in Nairobi.
But Tuju has maintained that the bank didn't honour the entire agreement.