kilam
JF-Expert Member
- Aug 5, 2011
- 2,092
- 2,128
Taxpayers have lost at least Sh1.4 billion after the Geothermal Development Company (GDC) cancelled a controversial geothermal contract handed to a Chinese company in 2014 to drill wells in Baringo.
In what makes the State corporation one of the biggest black holes in the energy sector, which continues to lose taxpayers’ money in the billions through fishy contracts, Smart Company has independently verified that GDC pulled the plug on the contract valued at Sh5.8 billion last month, more than five years after awarding it to Hong Kong Offshore Oil Services (HOOSL).
What is worse, GDC had wired the Hong Kong-based firm, whose top executive preferred communication using WeChat, Sh1.4 billion after bank guarantees expired, and failed to invoke provisions in the contract to recover the lost billions.
Two insiders at the firm, who are not authorised to speak to the media, confirmed the cancellation of the contract, but asked us to get an official comment from GDC chief executive Johnson ole Nchoe, who has been at the centre of action.
“I can confirm that the contract has been cancelled. The plan now is to do it (drill the wells) internally, but I cannot speak on this on the record for obvious reasons,” a manager at the firm who understands the intrigues around the contract said in an interview.
The insider said he did not know of any plans GDC has initiated to recover the money already paid out to the Chinese contractor.
Mr Nchoe did not pick up our calls on Friday or respond to our text messages on how Kenya will recover the money sunk in the project where the contractor never drilled even an inch. He instead said he was bereaved and offered to respond this week.
mobile.nation.co.ke
In what makes the State corporation one of the biggest black holes in the energy sector, which continues to lose taxpayers’ money in the billions through fishy contracts, Smart Company has independently verified that GDC pulled the plug on the contract valued at Sh5.8 billion last month, more than five years after awarding it to Hong Kong Offshore Oil Services (HOOSL).
What is worse, GDC had wired the Hong Kong-based firm, whose top executive preferred communication using WeChat, Sh1.4 billion after bank guarantees expired, and failed to invoke provisions in the contract to recover the lost billions.
Two insiders at the firm, who are not authorised to speak to the media, confirmed the cancellation of the contract, but asked us to get an official comment from GDC chief executive Johnson ole Nchoe, who has been at the centre of action.
“I can confirm that the contract has been cancelled. The plan now is to do it (drill the wells) internally, but I cannot speak on this on the record for obvious reasons,” a manager at the firm who understands the intrigues around the contract said in an interview.
The insider said he did not know of any plans GDC has initiated to recover the money already paid out to the Chinese contractor.
Mr Nchoe did not pick up our calls on Friday or respond to our text messages on how Kenya will recover the money sunk in the project where the contractor never drilled even an inch. He instead said he was bereaved and offered to respond this week.
Chinese firm bags Sh1.4bn for not drilling a single inch in
The latest debacle makes State-owned corporation one of the biggest black holes in the entire energy industry
