Treasury Cabinet Secretary John Mbadi was yesterday at pains to defend the government’s decision to accept the Privately Initiated Proposal (PIP) by Adani Holdings Limited to develop and expand the Jomo Kenyatta International Airport (JKIA).
Mbadi who appeared before the Senate Roads, Transportation and Housing Committee was taken to task to shed light on whether due diligence was carried on the company to determine whether it is debarred by any country or any international organisation from participating in Public Private Partnerships, whether the company is corrupt, is insolvent and is tax compliant in all jurisdiction.
The questions came after documents presented to the committee showed that Adani Holdings provided its own sworn affidavit to prove that it was tax compliant as well as Mbadi’s own admission that although most of the background information they checked on the World Bank website, they only visited the mother company in India to check on compliance.
It is after his admission that the session took a new twist as heated exchanges ensued between him and the senators who accused him of trying to conceal information on the controversial deal..
The committee chairperson and Kiambu senator Karungo Thang’wa, Edwin Sifuna (Nairobi) and Richard Onyonka (Kisii), said the mess in the whole deal regards the manner in which the Public Private Partnership (PPP) committee domiciled at the National Treasury approved the entire deal.
Sifuna took Mbadi to task over the decisions made by the PPP committee seeking to know whether he was aware that they are subject to appeal.
To keep jobs
He also sought to know whether all employees of JKIA would keep their jobs if Adani took over the management of JKIA.
Said Sifuna: “The approval by the PPP committee is the crux of the matter. Mr CS, you were supposed to confirm whether this company has been suspended from doing business in the world and is not subject to any legal proceedings. Did you do this because the documents you have submitted here show that they swore their own affidavits? Also please confirm what Adani said to the employees.”
And before he could answer, Onyonka intervened, accusing Mbadi of being a gatekeeper to some unknown individuals.
Said Onyonka: “Mr CS what happened to you, why are you being a gatekeeper? This is a matter you cannot keep at all.”
Onyonka also sought to know whether other companies expressed interest in taking part in the deal and whether the Treasury officials had visited India on a fact-finding mission. Sifuna on his part accused Mbadi of heckling after he raised his voice while responding to some of the questions.
Said Sifuna: “Hon CS you are actually heckling now (instead of) answering the questions. Mr. Chair if the CS is tired of answering questions let him tell us. We are not here to be friends with him, we want the truth.”
Mother country
Thang’wa separately sought to know whether the government only checked compliance with the mother country India yet the law required them to check due diligence to confirm whether the company is debarred in any country in the world.
He also sought to know whether Mbadi saw any problem as it is clear the issue of Adani was only dispensed within ten days in March this year, yet the proposal for expansion of JKIA was done a year ago.
But in his defence of the government’s decision, Mbadi, although admitted that there are gaps that they are currently addressing, said that thorough due diligence was yet to be completed following the high court case stopping further dealings on the matter.
He said that a team comprising Kenya Airports Authority, the State Department of Transport, the State Law Office and the Public Private Partnership Directorate of the National Treasury is in the process of undertaking a comprehensive due diligence exercise to establish the requisite capacity of Adani Airport Holdings Limited to undertake the project.
He however clarified that in the preliminary due diligence that they carried out on the company they checked the World Bank website to confirm that the company is compliant.
Mbadi who was accompanied by PPP director General Christopher Kirigua while confirming that the PPP committee had approved the deal, clarified that it made it clear that they would not proceed to the development stage if the 22 issues it raised including ensuring that all employees onboarded are not met.
