EACC Proposes Prosecution For Suspects In Ksh. 18.4B Payment To Lake Turkana Wind Power
The Ethics and Anti-Corruption Commission (EACC) has put forward a formal recommendation for the prosecution of individuals linked to the improper disbursement of Ksh. 18.4 billion to Lake Turkana Wind Power Ltd by various government bodies.
A document obtained by Weka News reveals that these payments were processed over the span of 2005 to 2019.
EACC initiated its inquiry subsequent to receiving a report from the Public Investment Committee (PIC)of the National Assembly. The report detailed instances of irregularities in procurement, mismanagement of contracts, and fraudulent transactions related to the project aimed at constructing a 400KV Transmission Interconnector power line from Loiyangalani to Suswa, along with associated undertakings.
The investigation findings affirmed that the agreement between Kenya Power and Lighting Co. Ltd (KPLC) and Isolux Inginieria S.A (Isolux) led to a loss amounting to Ksh. 18 billion and subsequently escalated electricity tariffs.
Further revelations emerged indicating that in 2005, Lake Turkana Wind Power (LTWP) Ltd secured a lease on 150,000 acres of land for the establishment of a wind power generation plant.
Conducting a feasibility study in Loiyangalani in 2006, the company ascertained the region’s potential for producing renewable energy. In response, Lake Turkana Wind Power (LTWP) Ltd presented a proposal for a wind power generation facility to the Government of Kenya (GOK), which was embraced.
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“KPLC entered into a Power Purchase Agreement (PPA) with LTWP Ltd on 29th January 2010 for the development of the Wind Power Plant (the LTWP Project). Among the terms of the PPA were that LTWP Ltd would generate 300MW of electricity, and that KPLC would be the sole take of that power. However, a 400 KV Transmission Inter-Connector Line (T.I Line) needed to be constructed from Loiyangalani to Suswa Sub-Stations, so that this generated power could be transported to the National Grid in Suswa Sub-Station.”
“Further that, if LTWP Ltd finished developing the Power Plant and started generating power, they would start charging for the power, whether KPLC were evacuating that power or not, from the date of commission. The T.I Line was to be constructed by Kenya Transmission Company (KETRACO) and LTWP Ltd,” reads part of the statement.
The construction of the Transmission Inter-Connector Line was left incomplete, leading LTWP Ltd to bill the GOK Kshs. 18,499,082,672 for Deemed Generated Energy. This payment involved public officials entangled in contractual fraud and money laundering activities.
A comprehensive report was compiled and submitted to the Director of Public Prosecutions (DPP) on June 5th, 2023, advocating for charges against the suspects on counts of conspiring to commit economic crimes, as per Section 47 A (3).
The accused individuals will also face 15 allegations of abusing their office under Section 46, charges of conflict of interest as stipulated in Section 42 (3), two counts of willful non-compliance with procurement laws under Section 45 (2) (b), and misleading a principal under Section 41 (2).
Additional charges involve fraudulent acquisition as outlined in Section 45 (1) (a), in conjunction with Section 48 of ACECA. Furthermore, three counts of money laundering in accordance with Section 3, and six counts of acquiring proceeds from criminal activities under Section 4, both read alongside Section 16 of the Proceeds of Crime and Anti-Money Laundering Act 2009. Neglect of official duty, as defined in Section 128 in conjunction with Section 36 of the Penal Code, constitutes another charge.
In its second quarterly report spanning from April 1st, 2023 to June 30th, 2023, the EACC investigated 22 cases, recommending prosecution for a total of 17 files.
The EACC awaits a response from the ODPP for the subsequent steps to be taken.