Taxpayers risk forking out billions of shillings in compensation
claims following revelations that there are suits against the
government with financial risks to the tune of Sh769.9 billion.
The
National Assembly’s Justice and Legal Affairs committee in submissions
to the Budget and Appropriations Committee (BAC) says the court awards
against the government that are pending payment stand at Sh115.7
billion.
“The committee further observed that there are
suits against the government with financial risks to the tune of
Sh769.9 billion,” the committee said in a brief on the budget estimates
for 2018/19 for the office of the Attorney-General and Department of
Justice.
“In addition, the awards against the
government pending payment stand at Sh115.7 billion and they are ranging
from awards to victims of torture as well as business litigants against
the State,” the committee chaired by William Cheptumo said.
Among
the high profile cases against the government is one filed by Cortec
which is among several other global mining firms that are demanding a
total of Sh334 billion from the government as compensation for
cancelling their licences.
About
10cases have been filed or are ongoing at the International Centre for
Settlement of Investments Disputes based in Dubai regarding the
revocation of their exploration permits. One of the disputes involves a
Sh200 billion claim by Cortec Kenya and a Sh61.8 billion claim by WalAm
Energy Inc.
Other firms that lost their licences
include Sirmonet Mineral Kenya, Yongtai Mining Company, Balham Trading
Company, Ololunga Mining and Industrials as well as AQ Kenya Gold Ltd.
While
revoking the mining licences, the government said Cortec’s 21-year
licence was unprocedurally issued and was against regulations banning
the exploration of minerals in a gazetted forest.
Multiparty
crusader Kenneth Matiba won huge compensation claims against the
government for torture in detention. The late Matiba was awarded Sh1.5
billion for loss of business while in jail.
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