Criminal Investigation office(DCI), Anti-Corruption(EACC) and the office of the prosecutor(DPP) are doing a collective investigation where Ksh. 1.1 Billion that was to be used in the Bura irrigation scheme to enhance food security, embezzled.
Taxpayers money on another tax loophole where a white elephant project swindled all the funds with totally nothing on the ground.
India’s IVRCL, the firm hired to complete construction of the Bura Irrigation Scheme, has collapsed before finishing the job, leaving taxpayers exposed and setting up a brutal fight between Kenya Commercial Bank (KCB) and the National Irrigation Board (NIB), which now wants to cash Sh1.1 billion guarantees obtained by the contractor.
IVRCL’s collapse has been revealed in a suit filed by the NIB against KCB, where the government institution is seeking to recover Sh1.1 billion in guarantees IVRCL obtained in 2013 before starting works on the Bura Irrigation Scheme project.
IVRCL has been renewing the bank guarantees every year since.
KCB has now accused the NIB of fraud, arguing that the government institution knew that IVRCL was undergoing insolvency proceedings in Hyderabad, India, but failed to disclose the information to the lender.
The High Court had, in May, delivered a summary judgment against KCB to pay the Sh1.1 billion after the lender failed to respond to the suit.
For nearly four years, IVRCL has been silently undergoing insolvency proceedings in India, where it obtained a court order barring the NIB from cashing bank the guaranteed amount Sh1.1 billion.
The same setup led to the collapse of the Galana-Kulalu irrigation scheme In 2017.
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