PIC summons former KPA MD Gichiri over SGR agreements

Former Kenya Ports Authority (KPA) Managing Director Gichiri Ndua has been summoned to appear before the Public Investments Committee  to shed more light on the standard gauge railway (SGR) project agreements with KPA.

Committee Chairman Abdullswamad Nassir said he has also summoned former general manager for board and legal services Muthoni Gatere to appear to shed light on the same.

According to information availed to the committee the two appended their signatures for the Government to acquire loans in an agreement with China Exim Bank for the commencement of the project.

He made the remarks when KPA acting Managing Director Amb John Mwangemi appeared before the committee to respond to audit queries on ports projects held at English Point Marina in Mombasa.

The committee chairman said they will also summon Transport Cabinet Secretary James Wainaina Macharia as KPA was under his docket before being transferred to the Treasury ministry.

Nassir pointed out the preferential credit loan agreement of May 2014 amounting to Ksh 161.6 billion and buyer credit loan agreement on the same date for Ksh 202.36 billion came to Ksh 363.96 billion.

He argued the information at the committee’s disposal obtained from subsidiary agreements and the actual loan agreements are not available for audit review.

“From the execution of the agreements the lender, China Exim Bank entered into subsidiary agreements to secure the loan repayments by the government who doubled up as borrower,” he pointed out.

Nassir disclosed it was in respect to delivery and movement of freight to the Embakasi inland container depot using the standard gauge railway in 2014.

He pointed out payment arrangements in the agreement referred to two loans for the Mombasa to Nairobi SGR project in 2014 between the foreign bank and the government and KRC and KPA.

 

 

  

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