Why Kenyans owe Bidco director Sh113 million

david nganga

June 13, 2017 10:22 AM

Kenyan taxpayers could fork out millions of shillings to pay the Bidco Director after..

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Kenyan taxpayers could end up paying at least Sh113 million to a firm owned by Bidco Director Vimal Shah.

This is after Mr. Shah’s Hembly Holdings Limited, and its Singaporean partner ITNL International incurred legal bills during tribunal proceedings over the collapsed 10, 000 kilometres roads project.

The firm slapped the Kenya National Highways Authority (KeNHA) with the hefty bill after successfully challenging one of the tender proceedings for the 10,000 kilometres roads project, which collapsed after the government failed to secure funding from commercial banks.

The Public Private Partnership Petition (PPPP) Committee has issued orders compelling KeNHA to bear the legal costs ITNL and Hemby incurred while challenging the award of a tender for construction of 175 kilometres of roads in Bungoma, Kakamega, Trans Nzoia, Busia and Siaya counties.

Prior to collapse of the 10,000 kilometres of road project, the winning bidders were to construct roads within three years and maintain them for another seven years.

The project’s payment was to be settled within the 10-year period but later on banks pulled out on financing the Sh260 billion project after failing to agree on interest charged on the loans.

The construction deal worth $47 million (Sh4.7 billion) was awarded to H Young, a construction firm associated with billionaire businessman Naushad Merali, before ITNL and Hemby challenged the award.

The PPPP Committee ordered for fresh tendering proceedings and held that KeNHA shall settle legal costs for the two firms that lodged the application for review.

Kenha, however argue that the Public Private Partnership Act of 2013 does not give the tribunal authority to issue orders on matters to do with legal bills.

david nganga