Raila alludes to another graft scandal at the Port of Mombasa

Opposition leader Raila Odinga has put President Uhuru Kenyatta to task over the manner in which a Dubai port management company, DP World, was appointed by the Government of Kenya to operate the second container terminal at the Port of Mombasa.

Mr Odinga said that DP World was awarded the contract in a fuzzy manner as it was trailing 12 other globally reputed port management firms in the tendering process.

The opposition leader pointed at a bilateral cooperation agreement signed by the Government of Kenya and the United Arabs Emirate (UAE) Government in which the oil-rich Middle East country would extend a concessional loan worth USD275 (Ksh.28 billion) to enhance operational and business efficiencies at the second container handling terminal in Mombasa as well as development of Kipevu Oil Terminal.

Raila insinuated that the loan from the UAE government was, in essence, a ‘bribe’ to top government officials to tilt favour of the lucrative port management contract towards the Dubai-based firm, DP World, as the agreement failed to specifically point at the projects to be financed.

“Loans are usually sought for specific projects. This particular one appears to be looking around for something to finance as long as the port is delivered. It is a case study in avoiding accountability for money disbursed. It can later be claimed to have financed anything and everything,” said Raila.

He challenged the president to disclose his interest in the contract, noting that a partnership of Chinese consortium PSA International and a local company – Multiple Hauliers, that emerged top among the bidders, was ignored for the Dubai Company.

The ODM Party leader further queried why Japan was ostensibly ignored in the award of the contract despite funding and building the terminus.

Mr Odinga noted that Japan International Cooperation Agency (JICA) representative in Kenya, Hideo Uguchi, had written to the National Treasury prior to award of the contract, protesting the manner in which the process was being handled.

In the letter, Japan reportedly threatened to suppress aid to Kenya over government meddling.

Mr Odinga now demands an explanation from President Uhuru Kenyatta on how the government handled the misgiving from Japan, which is a major development partner.

The opposition leader also wants the government to set straight its plan to repay the UAE concession loan.