The High Court blocked the payment of over Sh220 million to an Italian firm Gregori International, over a contract for the upgrade of stadia ahead of the cancelled 2018 African Nations Championship (CHAN).
The temporary orders were issued after the Ethics and Anti-Corruption Commission (EACC) filed a suit on July 31 seeking to recover the funds.
The EACC had sued former Principal Secretary for Sports Kirimi Peter Kaberia, former football Kenya Federation (FKF) president Nick Mwendwa, Harun Chebet Komen (Director of Administration), two other former senior ministry officials, and Gregori International.
The disputed contract Tender No. MOSCA/CHAN/002/2017-2018 was valued at €8,117,869 (about Sh995 million) and covered the design, mobilization, grass removal, irrigation, levelling, soil preparation, fertilizations, and installation of Bermuda/Pasalum grass, as well as sports equipment in five stadia and ten training centers across Kenya.
According to EACC, investigations revealed that the tender was awarded unlawfully, with procurement laws flouted and public funds irregularly paid out.
The Commission alleged that Gregori International was neither registered nor accredited by the National Construction Authority, making it ineligible to undertake construction works in Kenya.
EACC claimed the defendants fraudulently conspired to award the contract, acted in bad faith, and breached their fiduciary duties, resulting in the loss of public funds.
“The 1st, 2nd, 3rd, 4th and 5th Defendant/Respondents and in their respective course of employment, were grossly negligent, acted in bad faith and in breach of fiduciary duties,” said EACC.
The Commission moved to court seeking to cancel the tender and the contract signed on September 14, 2017.
They also sought a permanent injunction to stop any further payments
The court granted interim orders restraining the Ministry of Sports and Gregori International from implementing the contract or making any payments for 14 days.
“An interim order of injunction be and is hereby issued to restrain the 6th Defendant/Respondent and the Interested Party herein, by itself or through its agents, servants or assigns from paying the contract price, implementing and/or further implementing the contract entered into on 14th September 2017 in respect Tender No. MOSCA/CHAN 002/2017-2018-(for design, mobilization, grass removal, irrigation, levelling, soil preparation and fertilization, and installation of Bermuda/ Pasalum grass and installation of Sports Equipment in 5 stadia and 10 training centers in Kenya, in preparation for the Africa Nations Championships (CHAN) 2018) to last for 14 days,” read the court documents.
The matter was mentioned on August 12, before the Recess Duty Judge for directions.
A criminal case on the same matter is pending under probe. The probe file was forwarded to the Office of the Director of Public Prosecutions for action with various criminal char
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