Reports indicate that CS Rotich was summoned over the Arror and Kimwarer dams scandal.
The CS was accompanied by his lawyer Katwa Kigen to set the record straight.
In December last year, an Italian firm, CMC di Ravenna was paid Ksh4.3 billion for the Arror dam, and Sh3.5 billion for Kimwarer on November 6 last year.
Missing payments
Both are 15 per cent of the contract sum of Ksh28.5 billion for Arror, and Ksh23.1 billion for Kimwarer.
The amount is Sh1.2 billion short of the Sh21 billion the DCI is pursuing, and Rotich said the payments were largely fees paid out as part of the conditions to be met before work could begin on the dams.
In an attempt to defend the Treasury from accusations of overseeing a bad deal, Mr Rotich said the payments came from a loan acquired for the dams, and not the Exchequer.
Blowing the lead out of the scandal, DCI head George Kinoti said that Ksh21 billion had been spent on a project that had not even been designed.
Money trail
Detectives are also following the trail of Ksh4 billion wired to Nairobi from Italy to determine whether it was meant for kickbacks.
The Italian firm has already filed for bankruptcy at home, and last week Water Cabinet Secretary Simeon Chelugui admitted it does not have the capacity to finish the Itare dam in Nakuru County.
Commenting on the dams scandal Deputy President Dr William Ruto denied reports that the Ksh21 billion allocated to Arror and Kimwarer dam projects had been lost.
“It is a flat lie, the money in question is Sh7 billion and for every coin that has been paid, we have a bank guarantee, no money will be lost because we are a responsible Government, we have engaged all arms of the Government to ensure that public resources are safe,” said the DP.