[Source: Daily Nation, by Brian Wasuna and Vincent Achuka]
Delayed payment for land, which stalled completion of the Nairobi-Naivasha leg of the standard gauge railway (SGR), could be costing the taxpayer Sh21 million per day, according to documents seen by the Nation.
A letter by the chief executive officer of the National Land Commission (NLC) to the CEO of the Ethics and Anti-Corruption Commission (EACC) says the cash, which amounts to nearly Sh3 billion for the stand-off period, was being accrued as payment to the railway’s contractor for idle capacity and non-accessibility to the site.
However, Transport and Infrastructure Cabinet Secretary James Macharia on Sunday said the payment clause would only apply if the stipulated construction period lapsed. He added that his ministry had sought the help of the Ministry of Interior to clear the SGR corridor in a bid to avoid the extra costs being accrued due to the stalemate.
The contractor, China Communications Construction Company (CCCC), stopped work on the 120-kilometre railway line in Empaash, Tuala, Oloosirkon, Milimani, Rankau, Kandisi, Merisho, Nkoroi, Kangawa, Oloolua, Ngong, Kimuka and Suswa following disputes on paying owners for their land.
Under the contract, phase 2A was to cost taxpayers Sh1.25 billion for each kilometre of the railway line that snakes through five counties — Nairobi, Kiambu, Kajiado, Narok and Nakuru. But the accrued payments for idle capacity would inflate the total building cost.
Landowners in Nkoroi had claimed Sh4.2 billion before the Ethics and Anti-Corruption Commission froze payment last year to probe the inflation of some parcels, a scheme the anti-graft watchdog believes was masterminded by NLC and Kenya Railways officials.
Delayed compensation of landowners set the stage for an inter-agency battle in January when the Kenya Railways Corporation, the contracting state agency, sued the NLC for stalling the process and, in turn, delaying construction.
[Full article: Daily Nation, by Brian Wasuna and Vincent Achuka]
