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40 Vehicles Owned By Bankrupt Italian Firm CMC di Ravenna To Be Auctioned In Itare Dam Saga

Itare Dam
Itare dam, which was under construction by the company. [IMAGE/ COURTESY]

40 vehicles owned by bankrupt Italian company CMC di Ravenna have been put up for sale, following a Ksh585 million loan owed to Absa Bank.

The vehicles, including Isuzu D/Max, tippers, prime movers and cranes, will be auctioned on October 28, 2021, according to a notice by Phillips International Auctioneers.

“Duly instructed by our principals-the financiers, we shall sell by public auction the undermentioned vehicles and machinery at our offices situated at Kileleshwa estate along Kandara road in Nairobi on Thursday, October 28, 2021,” said the auctioneer.

Absa Bank and CMC di Ravena have already signed an auction consent before Justice David Majanja, which the auctioneers will rely on.

“If there is any shortfall from the sale of the motor vehicles and equipment, such shortfall shall form part of the plan for composition currently being administered in Italy and recognised in Nairobi HCCOM MISC/E627 of 2019,” says the consent.

Read: Agency in Stalled Itare Dam Contract To Pay KSh643 Million Tax

The Ksh36 billion project has been shrouded in controversy and allegations of theft of public funds, after CMC di Ravena closed its offices in the country and left the dam unfinished, handing over to Rift Valley Water Services Board (RVWSB).

RVWSB claims it had provided Ksh82.5 million for the purchase of the 17 cars, which were to be registered under CMC di Ravena and later transferred to the board after the work was done.

In their argument, RVWSB says that the vehicles did not belong to CMC di Ravena, though the company used them as security to secure the loan.

Absa bank said it loaned CMC di Ravenna Ksh585 million for the purchase of 98 vehicles and equipment to be used in the dams project.

Ksh160 million of the dams’ project money was paid to Toyota Kenya for 45 vehicles, ranging from Prados, Fortuners, Corollas, Hiace vans and pick-up trucks.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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