British Lawyer Interviewed in Wide-Reaching Kenyan Dam Scandal Investigation

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A British lawyer has been interviewed by criminal investigation officers in Kenya over missing funds meant for the construction of two major dams in theย country.ย 

Guy Spencer Elms, a controversial lawyerย based in Kenyaโ€™s capital Nairobi, was among various company directors and top government officials who recently appeared before the Director of Criminal Investigations for grilling in connection with missing Sh21 billion (approximately $210 million) that investigators believe has been wired to firms inย Europe.

In April 2017, the Kenyan government entered into a contract with an Italian companyย CMC di Ravenna to build two dams in Kenyaโ€™s Rift Valley region at the cost of Sh65 billion. The Kenyan Treasury paid Sh21 billion to the Italian firm, but the company is yet to commence the work several monthsย later.

While Kenyaโ€™s Director of Criminal Investigations (DCI) is still investigating how the controversial Spencer Elms was involved in the scandal, DCI boss George Kinoti disclosed that he was seeking the help of both the United Kingdom and Italy โ€œbecause that is where our money wasย wiredโ€.

DCI revealed that the investigations had grown complicated due to the widened scope of companies involved in the scandal, with the money trail reaching firms in both Italy and the Unitedย Kingdom.

In London, the DCI has contacted the National Crime Agency, mandated to investigate economic crime across regional and internationalย borders.

โ€œWe are dealing with several companies with different directors. That is why we are going through this methodically and clinically. But the net is getting wide,โ€ Kinotiย said.

Responding to the DCI‘s request to interview him, Elms toldย DeSmog:

โ€œA notice was sent out via social media by the CID asking that directors of 107 companies attend and provide statements concerning their involvement in any manner with the Italian company at the centre of the scandal. The Government records still showed that I was a director of one of the companies that had supplied the Italian company goods to the value of a mereย $15,000.โ€

โ€œIย had ceased to be a director 17 years earlier. Confirming documentation was supplied to the CIDโ€™s satisfaction. I clearly had nothing to do with the Damย Scandal.โ€

Elms emphasies that he has never been involved in criminal proceeding regarding the investigation in CMC Ravenna. A full response to Elms’ summons from his lawyers can be found at the bottom of thisย article.

Ambitiousย Project

A man not new to controversies, Spencer Elms was charged by a Kenyan court in September 2017 for forging a will in connection to prime real estate in Karen, one of the Nairobi cityย suburbs.

He was also mentioned in the Anglo Leasing scandal, where phantom firms were awarded ยฃ21 million to supply the Kenyan government with a system to print new high-technology passports, naval ships and forensicย laboratories.

So far, the directors and senior managers of 107 firms that were paid money by the dam contractor to offer various services and to supply goods have recorded statements withย investigators.

Spencer Elms was summoned to the DCI together with other eight people associated to his company, Tile & Carpet Centre, a building and interior product company based in Nairobi. Spencer Elms could not be reached for comment for thisย story.

Kenyaโ€™s leading newspaper,ย Daily Nation, reported that despite Sh21 billion having been paid to the Italian firm to buildย Arror and Kimwarer dams, there remains only thickets and a seasonal stream at theย site.

The ambitious projects aim to provide water for irrigation for over 50,000 people living in the vast region, and 80 megawatts of electricity to the national grid. But the plans have been subject to significant local opposition, with residents concerned they are not getting fair compensation packages for their communitiesโ€™ย displacement.

Kenyaโ€™s Deputy President William Ruto defended the project, claiming that people against the dams were trying to taint the government’sย image.

โ€œWe will go out of our way to ensure these dams are constructed โ€ฆ so we can change the fortunes of Kenyans in arid and semi-arid areas. It is not a favour but a development right they deserve,โ€ Rutoย said.

CMC di Ravenna is one of the biggest construction firms in Europe but has hit financial turbulence in recent times and was declared insolvent by an Italian court last December, affecting its ability to complete large infrastructureย projects.

Banks that loaned the country Sh65 billion for the two dams have written to the Treasury seeking a settlement of their demand notes. That means the Kenyan government could start repaying loans for a project that exists only onย paper.

In a statement, CMC di Ravenna said it โ€œcontinues to be fully committed to completing the dam project ahead of or within the contractedย timeframe.โ€

Some of the text in this article was amended on 09/09/2019 after an officialย complaint was lodged by Guy Spencerย Elms.

Main image: Elgeyo escarpment in the Great Rift Valley. Credit:ย Pngobiro/Wikimedia Commons CC BYSAย 3.0

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