National Treasury Cabinet Secretary Henry Rotich, Principal Secretary Kamau Thugge and six others will spend Monday night in police custody.
This is after they were arrested alongside other state officers over the Ksh.63 billion Arror & Kimwarer Dams scandal.
They are set to be arraigned in court on Tuesday.
Rotich on Monday morning presented himself to the Directorate of Criminal Investigations (DCI) headquarters in Nairobi hours after an order for his arrest was issued by the Director of Public Prosecutions (DPP) Noordin Haji.
Addressing the press, the DPP said his office received complaints touching on governance and operation challenges in the management of the two dam projects on September 18, 2018.
“Upon investigations by the DCI, it was established that the conception, procurement and payment process for the Arror and Kimwarer Dam projects in Elgeyo Marakwet County were riddled with massive illegalities,” he said.
“The investigations established that government officials flouted all procurement rules and abused their oath of office to ensure the scheme went through.”
According to DPP Haji, procurement procedures were ignored and the law circumvented to ensure Italian company CMC di Ravenna got the contract.
He also stated that Kerio Valley Development Authority (KVDA) chose Public Procurement and Disposal Act (PPDA), 2005 for the concession agreements despite the fact that the law in 2013 prescribed Public Private Partnerships (PPP).
DPP Haji said the alleged contract signed between KVDA and CMC Di Ravenna stated that Kimwarer Dam would cost $204,020,149.02 (approx. Ksh. 20 billion) while Arror Dam would cost $252,188,732.27 (approx. Ksh.25 billion), totaling approximately Ksh.46 billion.
However, he added, the National Treasury negotiated a commercial facility increasing the amount to Ksh.63 billion; which is Ksh.17 billion more.
“Of note, out of the Ksh.63 billion in respect of the projects, as at January 2019, the government of Kenya has made the following payments: advance payment, commitment fee, insurance and other costs totaling Ksh.19,714,366,991,” he said.
Ksh 4.6 Billion more was borrowed in addition to the principle amount to pay interest in advance during the construction period which to date has not commenced.
The Treasury released a further Ksh.643 million intended for the resettlement of the persons that would be affected by the projects as compensation.
“Upon receiving and reviewing the evidence, I am satisfied there is sufficient evidence to charge and prosecute the perpetrators,” he added.