Democratic Action Party-Kenya (DAP-K) leader Eugene Wamalwa has called on President William Ruto to terminate the Integrated Healthcare Information Technology System (SHA) deal, citing its alleged association with the controversial Adani Group. This comes amid heightened scrutiny of Adani-linked projects in Kenya following bribery allegations against the Indian conglomerate’s chairman, Gautam Adani, in the United States.
Wamalwa argued that the deal, tied to the health sector, lacks transparency and accountability due to the involvement of Adani, whose reputation has come under fire globally. “We commend the cancellation of the Adani-JKIA and Adani-KETRACO deals, but we ask, why not extend the same order to the health sector? Tunajua Adani ako kwenye SHA. In fact, we need to call that thing AdaniSHA,” Wamalwa said.
He criticized both President Ruto and ODM leader Raila Odinga for allegedly giving Adani a “clean bill of health” despite the company’s controversial track record. Wamalwa vowed to challenge the Finance Bill 2024, framing his opposition as a broader fight against corruption and non-transparent government dealings.
Government Moves to End Adani Deals
Wamalwa’s remarks come on the heels of President Ruto’s recent directive to terminate agreements with Adani, including projects related to the Jomo Kenyatta International Airport (JKIA) and the Kenya Electricity Transmission Company (KETRACO). The decision followed global backlash against Adani Group, with its chairman facing indictment in New York for bribery allegations.
The Kenyan government has assured citizens that the cancellation of these deals will not result in significant cost implications. National Treasury and Economic Planning Cabinet Secretary (CS) John Mbadi confirmed that the Directorate of Public-Private Partnerships (PPPs) has begun the termination process.
“My team at the Directorate for Public-Private Partnerships will provide a detailed report soon. As of now, I do not anticipate any significant cost implications from the termination. If the contract was based on fictitious presentations, as appears to be the case, it cannot be deemed legally binding,” said Mbadi.
The Ministry of Energy, led by CS Opiyo Wandayi, is working closely with the PPP Directorate to address the legal and financial implications of pulling out of these controversial agreements. Officials have maintained that Kenya is within its rights to void the contracts if they were signed under false pretenses or in violation of the law.
Adani Group Under Fire
The Adani Group, once a key partner in Kenya’s development initiatives, has faced mounting criticism and legal battles over allegations of corruption and misrepresentation. In the U.S., Gautam Adani has been accused of orchestrating a bribery scheme to secure funding for energy projects, some of which were set to be implemented in Kenya.
President Ruto’s administration has faced public pressure to sever ties with Adani amid concerns that the deals violated Kenya’s Public-Private Partnerships Law. Critics have also questioned the lack of due diligence in the awarding of contracts, highlighting alleged irregularities and the absence of competitive bidding.
“Contracts must be entered into with clean hands. If evidence shows that Adani’s presentations were fraudulent, then the basis of those contracts is void,” added CS Mbadi, emphasizing the government’s stance on accountability.
Political Ramifications
Wamalwa’s critique reflects growing political tension over the handling of the Adani-linked deals. While the government’s decision to cancel the JKIA and KETRACO projects has been lauded, the SHA deal remains a contentious issue. Wamalwa and his allies argue that the health sector, a critical pillar of public service, should not be tainted by associations with a company facing global allegations of misconduct.
The call for the cancellation of the SHA deal underscores broader concerns about Kenya’s reliance on foreign partnerships in sensitive sectors. As the government navigates the legal complexities of terminating these agreements, the focus remains on safeguarding public resources and ensuring accountability in international collaborations.
For now, all eyes are on President Ruto and his administration as they grapple with balancing public trust and international partnerships in the wake of the Adani controversy.
