Bobasi MP Innocent Obiri and a Chinese contractor have been arrested over the controversial Ksh.4billion Lake Basin mall in Kisumu.
Obiri and Zhang Jing were arrested in Nairobi on Friday.
A statement from the Director of Public Prosecution (DPP) identified Obiri as Managing Director of Quantech Consultancy which was under investigation.
Obiri is among over 30 suspects wanted for inflating the construction cost for the Lake Basin Development Authority (LBDA) mall by Ksh.1.8 billion.
LBDA Board Chairman Onyango Oloo is also on the list. He is currently the Kisumu County Assembly Speaker.
“It has been established that there was collusion between some Board members and M/s Erdemann Properties Limited…..The directors bribed the chairman of the Board George Onyango Oloo to the tune of Ksh.17 million,” the DPP said.
George Omolo Odawa, chairman of an LBDA Board committee, is also on the list for allegedly receiving Ksh. 12 million in kick-backs.
“…While the mall was under construction, the LBDA board irregularly and un-procedurally approved additional scope of work…for additional sum of Ksh.620 million for the mall and Ksh.680 million for the construction of a Show Room, Tyre Centre and a three star hotel,” the DPP added.
Some of the 11 charges they are facing include conspiracy to defraud; unlawful charging of public property; failure to disclose private interest to one’s principal; unlawful acquisition of public property as well as corruptly receiving and giving benefits.
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