Rotich to appear before house commitee on railway tender probe
21 January 2014, 13:44
Nairobi - The Cabinet Secretary for Treasury, Henry Rotich, will be
the next government official to appear before the Public Investments Committee
(PIC) as the probe into the Standard Gauge Railway project that was awarded to
China Road and Bridge Construction continues.
Rotich was schedule to appear later on Tuesday.
Transport Permanent Secretary, Nduva Muli, who was the
Managing Director for Kenya Railway Corporation when the feasibility study and
the tendering process was carried out, will appear before the committee on
Monday next week.
The Former Treasury and Transport Ministers, Amos Kimunya
and Chirau Mwakwere, will also later appear before the committee.
Meanwhile, Cabinet Secretary for Transport Eng. Michael
Kamau, has appeared before the parliamentary committee on Monday.
Among the issues that the PIC probed include the
conducting of feasibility study for the project, the tendering process and the
insurance component of the loan extended by the government of China to the
government of Kenya on a government to government basis.
PIC chair, Adan Keynan, asked Kamau why there had to be
an insurance element on the loan for the project saying that reflected mistrust
between China and Kenya.
Kamau was at pains to explain the reasoning behind the
insurance element on the loan.
“The loan which makes up 85 percent of the projects cost
will be repaid at an interest of 3.8 percent over 15 years with a grace period
of 5 years during the duration of construction period,” said Kamau.
The PIC also learnt that the Public Procurement and Disposal
Act (2005) was not followed during the tendering process for the standard gauge
Kamau said that the law was set aside since it was a
The committee was not convinced and wanted the cabinet
secretary to explain why the advice of the attorney general was not followed.
Kamau argued it had always been the case when dealing
with donor funding whereby donor conditions were preferred to existing laws.