Opposition leader Raila Odinga and Energy Cabinet Secretary Opiyo Wandayi were yesterday left with an egg on their faces after President William Ruto cancelled deals with the controversial Indian company, Adani Group.
Ruto’s announcement, made during the State of the Nation address to Parliament, came only hours after Wandayi had put up a spirited defence of the controversial firm, which was indicted by the US government over corruption.
Addressing the two Houses of Parliament during the State of the Nation address, President Ruto made the decision to cancel the deals, attributing it to credible evidence from the relevant agencies. Ruto, who earned a rare standing ovation from the senators and MPs, said the ongoing deals with the Adani Group could not continue with such insurmountable evidence.
“In the face of undisputed evidence or credible information on corruption, I will not hesitate to take action,” charged the president.
His remarks however appeared to contradict those by Wandayi who had earlier spiritedly defended the controversial but shadowy deals, maintaining that the Kenya-Adani deals would continue even after the unfolding events in the USA.
“We had no knowledge of any other adverse matters that could have come to light and therefore we are proceeding on the basis of the outcome of the rigorous due diligence conducted by the contracting authority in line with the law,” Wandayi had told the Parliamentary Energy Committee, adding that the government would be engaging in speculation as there had been no case of bribery or corruption in Kenya’s case.
Last month, former Prime Minister Raila Odinga had defended the contracts with the Indian firm, saying its operations were above board. He described Adani as a reputable company with a strong track record in Public-Private Partnership (PPP) projects.
Speaking at the side-lines of the ODM Party Delegates Conference at Pride Inn Paradise in Shanzu, Mombasa, Raila recalled his first interaction with Adani during his tenure as Prime Minister.
He highlighted several of Adani’s successful PPP projects in India, particularly in Gujarat and Mumbai, which he visited during his tenure. He recalled how he was introduced to the company’s infrastructure initiatives by Narendra Modi, who was then the Chief Minister of Gujarat.
“The Adani conglomerate is worth over 200 billion US dollars. If individuals made mistakes, let them own up, but we should not condemn companies that are merely conducting normal commercial activities,” Raila said.
Trust issues
The former premier hailed the company’s prowess in infrastructure development, referencing its transformation of Mumbai’s international airport from a dilapidated facility to a world-class hub.
Ruto’s decision came after Adani was indicted in New York. During the stormy meeting at the Senate members were divided on the matter with calls for the government to pull out amid the allegations against the investor.
“The investor that you have brought in the name of Adani has been indicted in New York. Will that affect the arrangement you have with them?” Tana River Senator Danson Mungatana posed.
Senators Edwin Sifuna (Nairobi), Ledama Olekina (Narok) and Boni Khalwale (Kakamega) sought to know the ministry’s next course of action with the latest revelation.
“With the indictment of Adani in America, can you still trust it with these four projects? If someone has been an indictment of rape, will you still trust that person to take care of your children at home?” Khalwale posed.
Appearing before the Parliamentary Energy Committee, Wandayi said that the indictment will not affect the Sh95 billion power transmission deal with Kenya Electricity Transmission Company (Ketraco).
Wandayi argued that at the time of inking the deal, Adani had passed a due diligence test and proved to have a credible history in undertaking similar projects.
He said that the PPP Directorate, in collaboration with Ketraco, conducted a rigorous scrutiny exercise on Adani in two phases which proved that they were fit to win the contract.
In their deal with Kenya, Adani were to manage the transmission lines and substations it will construct for 30 years, after which the project, and all its assets, would be handed over to Ketraco.
In the build-own-operate-transfer arrangement, Adani were to develop the 400-kilovolt Gilgil through Thika and Malaa to Konza transmission line to stretch 208.73 kilometres.
