Energy Cabinet Secretary Opiyo Wandayi. Inset: Chairman of the Adani Group Gautam Adani
On Thursday, November 21, as Energy and Petroleum Cabinet Secretary Opiyo Wandayi was in the hot seat answering questions from Senators on the Sh96 billion power deal with the Adani Group—an Indian conglomerate—he received a call that sources now say was high-voltage.
Minutes later, he had a request for members of the Senate's Energy Committee: he should be allowed to leave and another date set for the meeting.
Mr Wandayi indicated to the senators that he was required to give additional information ahead of the President's address and had to be excused.
By this time, Mr Wandayi had confidently declared that the deal with the Kenya Electricity Transmission Company (Ketraco) would continue despite news that Gautam Adani, one of the world's richest, and his associates had been indicted in the United States over a bribery scheme in an Indian power project.
Thursday was a significant day as President William Ruto was supposed to give his State of the Nation address to a joint sitting of the Senate and the Nation Assembly from 2.30pm.
Those with knowledge of the President's plans, but who spoke in confidence, said the Jomo Kenyatta International Airport takeover that was still being negotiated and the signed power deal with Ketraco were to feature in the speech as an affirmation of progress through an alternative approach to mega projects.
There was even talk of a "special guest" in the country who had been invited to demonstrate the commitment of the Indian multinational to the Kenyan deals.
But things were to change dramatically after information from the Department of Justice in the United States came through.
Wandayi off-guard
Mr Wandayi, on his part, had indicated that had Kenya done robust due diligence that gave it the confidence to continue with the Adani power deal.
A senator from the ruling United Democratic Alliance (UDA), who spoke on condition of anonymity, told Saturday Nation that Mr Wandayi had been invited to a high-level meeting on the decision to cancel the Sh96 billion contract and end negotiations on the controversial JKIA deal.
Kakamega Senator Boni Khalwale had earlier reminded Mr Wandayi, who served as the Public Accounts Committee (PAC) chair in the National Assembly in the 12th Parliament, that the Adani matter is of grave concern.
"In view of the serious reasons of indictment of Adani in the US, although you say due diligence was done, the validation requires to be audited or reconsidered, going by the track record of his bribing his way," he said.
Similarly, senators Edwin Sifuna (Nairobi), Ledama ole Kina (Narok) and Samson Cherargei (Nandi) urged the CS to exercise restraint regarding the Adani deals, urging him to consult further.
Massive fraud
"The Adani matter is of national interest. He has been indicted of massive fraud in the US and Australia. Please go slow on this issue of Adani," said Senator Cherargei.
Senator Ole Kina also had similar concerns: "At least go slow. We are the defending ombudsman. What we are hearing out there is not good."
Mr Sifuna even urged Mr Wandayi not to be very confident in defending the deals, especially on his assurance that there would be no financial risk.
"Saying there is no consequence on the termination of the contract," said Mr Sifuna, after CS Wandayi weighed in on the matter of risks, stressing that there were no fears of disassociation on the part of the government.
"That's the reason the project was a 30-year concession to allow the company to recover their money," said Mr Wandayi.
But with all these behind the scene happenings, Mr Wandayi stood his ground when he appeared before the committee chaired by Senator Wahome Wamatinga (Nyeri), insisting that the signing of the project agreement on September 9 was above board after the Adani Energy Solution met the requirements in phase one and two.
He even disclosed the company submitted the required documents in phase one, detailing legal, financial and logistical capacity to undertake similar projects.
"We were convinced that the deal met the principles set out in Article 227 of the constitution. We did due diligence on two phases and so far was fully in compliance with sections 37 and 40 of PPPA and the Public Finance Management (PFM) Act 2015," CS Wandayi told the senators.
Mr Wandayi added, "We cannot tell if this US case will affect the delivery of the project, why because they are not related. We cannot ascertain the vague information or its veracity from where we sit and therefore, we will be engaging in speculations."
On the Sh34 billion bribery charges in the US, Mr Wandayi ruled out the matter having a bearing on the Kenyan projects as there was no bribery.
He seemed to have spoken too soon. At State House, sources said plans had to be changed hours before President Ruto's second State of the Nation address to outline his Kenya Kwanza administration's scorecard in delivering the Bottom Up Economic Transformation Agenda, with pressure mounting from the US, one of its strategic partners.
This only added to weeks of criticism over the proposed JKIA deal and the Ketraco contract with President Ruto and his allies insisting that the plans were good for the country.
Also Read: High Court blocks Sh95.68bn Adani power deal
Based on the escalation of the Adani case under the US Foreign Corruption Practices Act and the extraterritorial jurisdiction, Kenya found herself in a delicate state to proceed with the projects.
"A decision was made not to have the Adani name in the speech as well as the private initiated proposal (PIP), which had earlier elaborately been explained as the best way to cushion Kenyans from taxation and increased public debt," a source, who spoke in confidence, told the Saturday Nation.
The bombshell
Then came the bombshell in the President's speech that inspired a standing ovation from legislators. Dr Ruto had pointed to credible "new information" provided by Kenyan investigative agencies and partner nations on corruption for the decision.
"The procuring agencies within the Ministry of Transport and the Ministry of Energy immediately cancel the ongoing procurement process for the JKIA expansion public-private partnership transaction, as well as the recently concluded Ketraco transmission line public-private partnership PIP contract and immediately commence the process of onboarding alternative partners."
He thereafter submitted the three reports to the speakers of the National Assembly and Senate as required by the Constitution and the Standing Orders for Members to debate.
The reports tabled are on the state of security, all measures taken and progress achieved in the realisation of national values and the progress made in fulfilling the international obligation.
Mr Munyori Buku, who heads the Presidential Communication Service, did not immediately respond to our enquiries on the decision to cancel the deals.
