Govt Boss Arrested Over Ksh2.5 Billion Scandal

The former Managing Director at the Lake Basin Development Authority Peter Aguko, was arrested on Sunday, September 8, 2019.

The Nation reported that the ex-boss was apprehended alongside 6 of his former colleagues as well over a Ksh2 billion mall scandal, adding that they would be arraigned in Nairobi on Monday, September 9.

Director of Public Prosecutions Noordin Haji had given the police the go-ahead to bring in the ex-LBDA boss, over massive inflation of the cost of building the Lake Basin Mall in Kisumu.

Director of Public Prosecutions Noordin Haji. He had called for the arrest of Ex-LBDA boss Peter Aguko

According to the official records, the initial cost of the mall was set at Ksh2.5 billion but later adjusted upwards to Ksh4.1 billion.

Haji had also called for the arrest of Kisumu county assembly speaker Onyango Oloo as well as Bobasi Member of Parliament Innocent Obiri.

The public prosecutor in his investigation had found that three firms had initially submitted their bids to build the mall, before it was awarded to Erdemann Property Ltd on March 14, 2013.

However, some irregularities arose during the construction phase as an additional scope of work was dubiously added at an additional Ksh620 million.

Ksh680 million was then approved as an additional cost for setting up a showroom and a tyre centre at the mall.

The former LBDA bosses were also accused of borrowing up to Ksh1.3 billion from co-operative Bank.

A section of Lake Basin mall being put up in Kisumu. The former Ex-LBDA boss was arrested for inflating the costs of setting up the mall
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