Kisumu Speaker, Erdemann Property Owners to Be Arrested Over the LBDA Mall Scam

The Director of Public Prosecution Noordin Haji has ordered for the arrest of the Kisumu County Assembly Speaker Onyango Oloo over the controversial Ksh.4billion Lake Basin mall in Kisumu.

Also targeted are over 30 individuals including Ederman Properties limited owners and Bobasi MP Innocent Obiri who is listed as the managing director of Quantech Consultancy.

In a statement released on Friday, the DPP said he had independently reviewed a file by the Ethics and Anti-corruption Commission (EACC) and found out that there was sufficient evidence to charge the individuals for inflating the cost of the Lake Basin mall by Ksh1.8 billion.

“The Ethics and Anti-Corruption Commission received a complaint on July 28, 2015, that the construction of the Lake Basin Development Authority (LBDA) mall had been inflated to Ksh2.5 billion shillings. EACC commenced investigations and upon completion submitted the resultant inquiry file to this office on 1st July 2019, ” the statement reads in part.

However, upon completion of a probe and forwarding of the file to the DPP’s office, Haji returned the file to the EACC on August 1 for further investigations because the report had “gaps”.

Read: EACC Detectives Raid Home Of Kisumu County Speaker Onyango Oloo Over Graft

He appointed a team of senior officers to guide EACC investigators. The file was resubmitted on August 29, 2019.

“It has been established that there was collusion between some Board members and M/s Erdemann Properties Limited…..The directors bribed the chairman of the Board George Onyango Oloo to the tune of Ksh.17 million,” said Haji.

Haji also ordered the arrest of George Omolo Odawa, chairman of an LBDA Board committee, for allegedly receiving Ksh12 million kickbacks.

“…While the mall was under construction, the LBDA board irregularly and un-procedurally approved additional scope of work…for additional sum of Ksh.620 million for the mall and Ksh.680 million for the construction of a Show Room, Tyre Centre and a three star hotel,” the DPP added.

The two directors of Erdemann Property Limited to be prosecuted are Zhang Jing and John Zeyun Yang.

Other individuals facing arrest are LBDA evaluation committee members – Anthony Kisaka (CEO), Nelson Onyango (production technologist), Henry Odindo (quantity surveyor, Quantech), Emmanuel Milikau (architect, Symbion) and Moses Wekesa (consultant, Symbion).

Five LBDA tender committee members are also wanted. They are Onyango Chere, Godfrey Mwangi, Albert Omondi, Teresia Ochaka and Amelia Atieno.

Besides Speaker Oloo and Engineer Odawa, 14 other LBDA board members are facing arrest. They are Anthony Kogo, David Oyosi, John Mango, John Collins Onyango, Boniface Simba and William Omoding, Jimmy Nabwera, Alex Mukabwa, Mary Goima, Kennedy Musembe, Michael Obora, Joash Odhiambo, Dennis Mulaa and Josiah Okumu.

Six other contractors also face graft charges.

They are Erdemann (A Company), Oscar Odhiambo (Director Symbion Kenya Ltd), Symbion (A Company), Lydia Owino (director, Feradon Associates ), Vincent Makonjio (director, Feradon Associates) and Obiri.

The suspects will face 11 charges including conspiracy to defraud; unlawful charging of public property; failure to disclose private interest to one’s principal; unlawful acquisition of public property as well as corruptly receiving and giving benefits.

Here is the DPP’s statement: