Uhuru should be surcharge for this 17b loss

[RV Pundit]

• Tweet

He unilaterally cancelled the project after learning Jimmy wanjigi was running it...like he did Aror n kimwarere.. international contracts that Kenya eventually has to pay.Ruto should negotiate with Chinese to come n complete work next year and Italian to return to finish the dam..otherwise we will pay for nothing https://www.the-star.co.ke/news/2021-08-26-kaa-denies-plan-to-pay-china-firm-sh17bn-for-undone-jkia-terminal/

[vooke]

Cutting losses

Once completed their premium above the real cost will be twice the 17B

[RV Pundit]

That is based on what? I doubt kickbacks exceed 10 percent. Remember there are other companies competing for the same contract - so kenya corruption is not monopoly - there is a thriving kickback market as each chinese or foreign company employs their own fatcat - and still have to compete on technical and commercial terms.

Once you have issued a contract with international companies - you simply have to see it through - or be prepared to pay heavy fines Moi era style.

If anything there should have been some arbitration - you dont just wake up like Uhuru did - drive to JKIA - and order chinese out.

Cutting losses

Once completed their premium above the real cost will be twice the 17B

[vooke]

That is based on what? I doubt kickbacks exceed 10 percent. Remember there are other companies competing for the same contract - so kenya corruption is not monopoly - there is a thriving kickback market as each chinese or foreign company employs their own fatcat - and still have to compete on technical and commercial terms.

Once you have issued a contract with international companies - you simply have to see it through - or be prepared to pay heavy fines Moi era style.

If anything there should have been some arbitration - you dont just wake up like Uhuru did - drive to JKIA - and order chinese out.

Cutting losses

Once completed their premium above the real cost will be twice the 17B

10% is way too low.

Remember Mombasa Highway?

We have totally useless projects dubbed hich are grossly overpriced. Edward Ouko called it 'budgeted corruption' and I doubt 10% is enough to warrant this tag.

It is now clear that the US government has ditched the project which it earlier this year questioned its costing, with concerns it had been inflated by at least 66.7 per cent.

While initial construction costs by the Americans was estimated at $1.8 billion (Sh185.9 billion), government placed the cost at $3billion (Sh309.9 billion) which is Sh124 billion more.

This raised eyebrows leading to the US government temporarily halting the project which was to be e implemented by American construction company-Bechtel International
https://www.the-star.co.ke/business/2019-11-01-chinese-eye-mombasa-nairobi-expressway-as-us-ditch-project/

[RV Pundit]

Yes 10% is low if there is no competitive bidding. If they are single-sourced - then kickback can be anything - but if they in open tenders - then unless all corrupt fatcats agree - they will be playing on reasonable competitive bribes.

This is why we should avoid single sourced contracts - so even corruption we pay off can be competitively prized.

10% is way too low.

Remember Mombasa Highway?

We have totally useless projects dubbed hich are grossly overpriced. Edward Ouko called it 'budgeted corruption' and I doubt 10% is enough to warrant this tag.

It is now clear that the US government has ditched the project which it earlier this year questioned its costing, with concerns it had been inflated by at least 66.7 per cent.

While initial construction costs by the Americans was estimated at $1.8 billion (Sh185.9 billion), government placed the cost at $3billion (Sh309.9 billion) which is Sh124 billion more.

This raised eyebrows leading to the US government temporarily halting the project which was to be e implemented by American construction company-Bechtel International
https://www.the-star.co.ke/business/2019-11-01-chinese-eye-mombasa-nairobi-expressway-as-us-ditch-project/

[vooke]

Yes 10% is low if there is no competitive bidding. If they are single-sourced - then kickback can be anything - but if they in open tenders - then unless all corrupt fatcats agree - they will be playing on reasonable competitive bribes.

This is why we should avoid single sourced contracts - so even corruption we pay off can be competitively prized.

10% is way too low.

Remember Mombasa Highway?

We have totally useless projects dubbed hich are grossly overpriced. Edward Ouko called it 'budgeted corruption' and I doubt 10% is enough to warrant this tag.

It is now clear that the US government has ditched the project which it earlier this year questioned its costing, with concerns it had been inflated by at least 66.7 per cent.

While initial construction costs by the Americans was estimated at $1.8 billion (Sh185.9 billion), government placed the cost at $3billion (Sh309.9 billion) which is Sh124 billion more.

This raised eyebrows leading to the US government temporarily halting the project which was to be e implemented by American construction company-Bechtel International
https://www.the-star.co.ke/business/2019-11-01-chinese-eye-mombasa-nairobi-expressway-as-us-ditch-project/

Even under competitive bidding they blow through the original contract to service kickbacks.

Think of any project and you'll find it in exceeded original figure by the expected 5-10%