Mbadi: Adani deals still in early stages, can be cancelled anytime
By Lucy Mumbi |
Mbadi also emphasised that the government was still conducting due diligence on Adani's proposals and had not yet begun formal negotiations.
Treasury Cabinet Secretary John Mbadi has said that the Adani procurement process is still ongoing but can be cancelled at any time, as directed by President William Ruto.
Speaking to the media outside Parliament, Mbadi clarified that the government is in the early stages of negotiations regarding the Sh260 billion deal for the upgrade of Jomo Kenyatta International Airport (JKIA) and the Sh95 billion power deal, both of which are part of the Adani proposals.
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"Let me make it clear that PPP is a very important process and is necessary and timely. However, there are processes to be followed when procuring," he said.
"The Adani deals have been through Privately-Initiated Proposals (PiP) and the beauty is that it can be stopped at any stage before negotiations are concluded."
Mbadi also emphasised that the government was still conducting due diligence on Adani's proposals and had not yet begun formal negotiations.
"We were still in the procurement process and the negotiations had not begun. For JKIA, we were doing due diligence. For me, it is timely; it is stopped at a time when we don’t have legal challenges," he said.
The CS further noted that the government’s due diligence had uncovered inconsistencies in the proposals, with partnering agencies raising concerns about the Indian conglomerate.
"We have done due diligence as a government, and the report from our partners is that there are a lot of questions around the proposed procurement method," Mbadi added.
The decision to cancel the Adani deals comes amid ongoing allegations of bribery and fraud against Gautam Adani, the chairman of the Adani Group, who has been accused of Sh30 billion in fraudulent activities. These allegations have added to public concerns regarding the transparency of the deals.
Earlier in October, Mbadi stressed the importance of PPP deals for the country’s infrastructure development, including the need for airport upgrades.
"Rwanda has developed a serious airport, Ethiopia has an airport. Kenya cannot lag. We're losing our competitiveness as a hub," he said during the Kenya Bankers Association (KBA) exhibition in Nairobi.
"Therefore, whether it is Adani or not, we must agree that someone must do our airports. It is not just airports alone, major projects. Let us not shy away from engaging Kenyans," he added.
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