Navy story.indd - Mars Group Kenya Publications

The Navy Ship Deal
Dr. Chris Murungaru,
former Ministers for
Internal Security
Mr. Kiraitu Murungi,
former Minister for
Justice
Mr. Kiraitu Murungi,
former Ethics and
Governance Permanent
Secretary
The Kenyan
Parliament Buildings
The report, adopted by Parliament on May 2nd 2007, runs to only 13 pages including
an executive summary, and has one annex containing 6 photographs of 4 members
of the departmental committee on what we are told is the ship Kenya is meant to pay
for, and take delivery of.
Mr. Kariuki and his team make three broad recommendations:
First of all it recommends that the Government submit to the International Arbitration
Court; secondly it recommends the appointment by the Government of Kenya of an
independent survey of the value of the project; and thirdly, it recommends that the
Government decide whether or not it wishes to terminate the contract and take the
required action.
While we await the imminent report of PriceWaterhouseCoopers on the 18 Anglo
Leasing type security contracts, we would like to point out but a few of the gaping
holes in this report. A reading of the departmental committee’s report reveals several
curious facts and consequent questions that require answers from G.G. Kariuki and
his parliamentary colleagues:
1. The departmental committee did not meet with the Attorney General at all.
It did not scrutinize the legal and financial contracts which purportedly legitimize
the demands for payment being made by Euromarine for the procurement of the
ship they believe they visited. Why
2. Although the committee says it “took upon itself the responsibility to establish
the truth regarding allegations of irregular procurement of a naval ship for the Kenya
Navy” it does not assess the procurement process at all save to note that there was
a contract dated July 15th 2003 between the Government of Kenya and Euromarine
Industries, a Spanish registered firm, and a sub-contract between Euromarine and
Astilleros Gondan, a Spanish ship builder based in Ribadeo, Spain, the venue of the
committee’s visit. Wouldn’t the appropriate place to start its inquiry be a review of
whether or not the procurement law was followed as regards sub-contracting More
fundamentally, was the committee not curious as to why the ship was being bought
through an intermediary, broker or middleman What value did Euromarine brings
to this deal
3. The committee held discussions with officials representing Euromarine but
not with the ship builder, Astilleros Gondan. In fact the website of Astilleros Gondan
does not list Jasiri Mombasa or indeed any Kenyan vessels in its list of ships built
between 1969 and 2006. How does the committee explain this curious omission
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