By Oh Young-jin
Korea has all but decided to reject a request by Kenya for a $50 million loan for an industrial training program because of the African state’s “dubious” contract with a Korean equipment provider, officials said Tuesday.
“Kenya signed a memorandum of understanding (MOU) with the Korean cooperative of equipment makers even before the loan was granted,” a government source told The Korea Times. “It paves the way for a no-bid contract that violates our regulations.”
The loan was to be from the Economic Development Cooperation Fund (EDCF), a government loan program for poor countries. Kenya is seeking the loan for a technical, industrial, vocational and entrepreneurship training (TIVET) program.
Multiple sources cite dubious circumstances leading to Korea’s reluctance to approve its request, saying that Kenya had first sought loans for agricultural equipment and then changed its mind, asking for a TIVET program. Kenya can’t explain why it changed its mind.
“They first asked for farm equipment and changed their request, leaving us wondering what caused their change of heart,” a source said. A Korean team had already been sent to Kenya and reached an agreement on the provision of farm equipment, but the country went back on that.
They said that even if Kenya rescinded its MOU with the Korean business entity, there can be no way of accommodating Nairobi’s request. “It is already tainted,” the source said. “We can’t be guaranteed a fair bid,” another source said in a strong show of skepticism about the Kenyan government’s cleanliness. “Frankly, we fear Kenya will go back to the same Korean entity without hosting an open bid.”
Pertinent regulations stipulate that the recipient nation is required to invite all parties interested in the deal to bid before selecting one.
Although the officials didn’t say it out loud, the undertone of their remarks was an unmistakable suspicion of corruption.
During an interview, Kenyan Ambassador Ngovi Kitau said that Korea didn’t respond properly to a letter, dated July and addressed to Strategy and Finance Minister Bahk Jae-wan, by his country’s deputy prime minister, asking Korea to accommodate its request.
The envoy said that Nairobi wants a TIVET program, adding that it would be of help to neighboring countries.
Meanwhile, the Strategy and Finance Ministry plans to issue a written rebuttal to The Korea Times’ front-page lead article Monday, titled, “Aid program strains Korea-Kenya ties,” regarding Korea turning a blind eye to Kenya’s request.