The parliamentary Public Investments Committee (PIC) is investigating circumstances that led to the auctioning of a prime piece of land belonging to the Kenya Airports Authority (KAA).
The Sh500 Million piece of land was auctioned by a bank after a mysterious deal where a civilian used the land as collateral for a loan that was not paid back.
The PIC was puzzled by the details where a company known as Transglobal Cargo Centre, which is owned by Peter Muthoka, was able to use the title deed owned by KAA to get a Sh510 Million loan.
On Tuesday, KAA officials told MPs that a former Managing Director at the state corporation signed a letter of consent to charge KAA on the loan that had been advanced by Standard Chartered.
KAA company secretary Catherine Kisila could not, however, explain how a title belonging to a public entity was used to secure a loan meant to benefit a private company.
Kisila stated that the officials were ready to face consequences for their actions.
It also emerged that Transglobal Cargo Centre was irregularly allowed to operate the cargo handling facility at JKIA after their contract was extended for 20 years without following due process.
