Peter Mbugua, the chief executive officer of the Rural Electrification and Energy Corporation (REREC), is among the high-ranking officers at the agency who has been suspended over Sh500 million scandal involving fake surveys.
Formally known as Rural Electrification Authority (REA), REREC was established through the enactment of the Energy Act, 2019 with an expanded mandate of spearheading Kenya’s green energy drive and implementing rural electrification projects.
Under section 44(1) of the Energy Act 2019, REREC is mandated to, among other things: Manage the Rural Electrification Programme Fund established under section 143; Source additional funds for the Rural Electrification Programme and renewable energy; Develop and update the rural electrification master plans in consultation with County Governments; and develop and update the renewable energy master plan taking into account county specific needs and the principle of equity in the development of renewable energy resources.
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“We make reference to an internal audit dated July 2022 where it was alleged that you prepared irregular payment invoices together with payment certificates of survey for projects that did not exist amounting to Sh430 million,” the suspension letter reads in part.
An internal audit report indicates that the corporation paid close to Sh430 million for, among others, geospatial engineers and business consults.
This not the first time a senior officer at REREC is leaving office unceremoniously. The graft-ridden corporation which controls an annual budget of Sh9.6 billion has had its previous managers dismissed over allegations of graft.
A recent ruling by High Court judge Hedwig Ong’udi blocked eight members including the chairperson of the board Wacuka Ikua from assuming office.
In addition, the Completion Authority of Kenya (CAK) has accused REREC of awarding tenders for electricity poles worth Sh800 million to companies controlled by the same directors.
