Cabinet Secretary for Energy Opiyo Wandayi, Indian billionaire Gautam Adani and Cabinet Secretary for Roads and Transport Davis Chirchir.
Hours before President William Ruto ordered the cancellation of two lucrative deals signed with Adani Group, Energy and Petroleum Cabinet Secretary Opiyo Wandayi had defended the firm despite a bribery scandal exposed by US authorities.
On Thursday morning, Mr Wandayi told a Senate committee that the government would continue with the Sh98 billion power deal between the Indian conglomerate and Kenya Electricity Transmission Company (Ketraco) despite the indictment of the Indian billionaire Gautam Adani, and his seven associates by a US court on bribery claims.
The CS had insisted the contract under the Privately Initiated Proposal (PIP) in line with the PPP Act would not be affected by the adverse reports from US authorities.
He said at the time of the award of the deal, the Kenyan government had done due diligence and found nothing sinister on Adani Energy Solutions.
“We are proceeding with the Adani PIP based on vigorous due diligence undertaken in two phases on Adani Energy solutions. We had knowledge of the adverse matters that should have come in light,” CS Wandayi told senators.
He told the Senator Wahome Wamatinga-led committee that the government was only keen on having the court order stopping the government from implementing the PIP lifted.
The deal with the State corporation to build a high capacity transmission power lines was challenged by the Law Society of Kenya that secured orders blocking the process.
Mr Wandayi kept on a line of defence that his colleague, Mr Davis Chirchir (Transport) had hammered last week.
Mr Chirchir also defended Adani Group’s controversial bid to take over the Jomo Kenyatta International Airport (JKIA) in a Sh238 billion deal.
“Adani has not been barred by any country, has no history of corruption based on our due diligence, is solvent, and is tax compliant in all jurisdictions where it operates.
“Its directors have not faced criminal convictions related to professional conduct within the last five years and have not been disqualified due to any administrative suspension or debarment proceedings,” Chirchir told Parliament.
Following public outcry, President Ruto pulled a first one and ordered the immediate cancellation of the JKIA and Ketraco deals in light of the damning US dossier on Adani Group’s chairman Gautam Adani.
“The procuring agencies within the ministries of Transport and Energy immediately cancel the ongoing procurement process for the JKIA expansion Public Private Partnership transaction, as well as the recently concluded Ketraco transmission line PIP contract,” the President directed, drawing a standing ovation from lawmakers on Thursday afternoon during an address on the State of the Nation.
The President, who has in the recent past assured Kenyans that the deals were above board despite concerns about the Indian company, appears to have changed tune.
He went ahead to order the procurement departments of the Energy and Transport ministries to commence the process of onboarding alternative partners.
What Kenyans did not know and what insiders within the presidency confided in the Nation is that the President’s speech was edited to reflect the developments in the US court.
“The speech was reworked to address the development relating to the Adani Group chairman in the US and also the Public Private Partnership (PPP) arrangement,” said a top official within the presidency aware of the changes.
Another stated: “The initial speech had the Adani deals. It was explaining to Kenyans why the government has taken the PPP route and what the multi-billion projects were crucial to Kenya. However, things changed with the US development and since Kenya is a non-Nato ally.”
Earlier, the Nation established that the speech writers were directed to rewrite the speech and use alternative words to avoid criticism from Kenyans and MPs.
National Treasury CS John Mbadi assured Kenyans that there would be no money lost as a result of the cancellation of the JKIA deal.
“The Ketraco deal had progressed and will check if there is any possibility of exposure. However, for JKIA, there is no money lost. It was still at the initial stages as I had told MPs,” said Mbadi.
