By Confidente Reporter
ANHUI Foreign Economic Construction Group (AFECC) a Chinese government owned enterprise at the centre of a legal battle with the Government over a N$7 billion airport tender, allegedly has a price inflation case in Kenya where it has done airport refurbishment work.
Last year, there were reports on AFECC by Kenyan media regarding the cost of the construction of a new passenger terminal for the Jomo Kenyatta International Airport which was said to vary by nearly N$1.2 billion which led to the Kenyan Airports Authority (KAA) suspending four of its senior managers, including its managing director to pave way for an investigation.
According to Kenya’s Citizen Newspaper, KAA and AFECC had initially signed 2011, but in 2013 the two ina contract for N$7.5 billion in creased the price by a further N$1.2 billion bringing the money Kenyan taxpayers had to pay for the new terminal to N$8.7 billion.
According to the terms in the original contract they was going to be a contingent of five percent for the employer’s supervision consultant and other taxes and 10 percent for the works however later the KAA’s Managing Director reportedly signed for a provision of 16 percent Value Added Tax which was allegedly a change from the initial contract that had factored in all taxes; and this tax had to be paid by KAA.
Last month, Zimbabwean media reported that AFECC and another Chinese firm, Jinan Mining had been cited in court documents where they were accused of having been involved in the externalising of nearly N$4 billion from Zimbabwe to Botswana, China, Mozambique, Democratic Republic of Congo, Dubai and Sierra Leone.
By the time of going to print, the Chinese Embassy in Namibia through its official in the country’s Ministry of Commerce identified as Han hadn’t responded to questions she asked to be emailed to her over a week ago.
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