Kisumu County assembly speaker Onyango Oloo risks arrest

Kisumu county assembly speaker Onyango Oloo, former LBDA managing director Peter Aguko and Bobasi MP Innocent Obiri risk arrest over inflation in the cost of the construction of Lake Basin Mall.

The Director of Public Prosecutions, Noordin Haji ordered the arrest of the three following a complaint. Haji said investigations were launched by EACC on 28th July after the commission received a complaint of inflation from Ksh2.5 billion to Ksh4.1 billion.

Upon investigations, the Office of the DPP found that three firms bid for the tender to build the mall, but all were non-responsive. The tender was awarded to Erdemann Property Ltd on 14th March, 2013. The former Lake Basin Development Authority boss, Aguko and ex-chairman David Oyosi executed the agreement; Erdemann had Zhang Jing and Zeyun Yang execute the agreement.

The initial contract amount was Ksh2.5 billion. Subsequently, an additional Ksh620 million was approved then another Ksh680 million for a showroom, tyre centre and three-star mall.

Erdemann is accused of committing to fund 80 per cent of the project, but failed to do so. It also allegedly bribed Oloo, the then chairman of the board, with Ksh17 million and other benefits including apartments and shops. Then chairman of the LBDA finance committee, George Odawa, allegedly received Ksh12 million.

Eight Erdemann contractors also face arrest.