Vice-President George Saitoti and Cabinet Minister Nicholas Biwott exerted undue pressure to have Sh850 million of public money released to a project that failed to get off the ground, an official report has revealed.

Prof Saitoti, Mr Biwott, and two former top Treasury officials ignored expert advice and urged the Industrial and Commercial Development Corporation to release the money to build a soya bean oil extraction plant, says the report by the Public Accounts Committee.

The soya bean scheme failed because of a lack of local funding, although the equipment was delivered, the report states.

The report, tabled in Parliament on Tuesday by its chairman, West Mugirango MP Henry Obwocha, names the two officials as Mr Charles Mbindyo, PS for Finance, and Mr A.H. Ali, the financial secretary when the amount was released.

The Sh850 million was paid to Mr John Savage of Savage Holdings, in August 1990.

The Attorney-General should investigate the transaction and if any crime is revealed those responsible should be prosecuted, says the PAC.

The committee says the recommendation that the deal should be investigated was first made in 1995 but has not been acted on.

Equipment owned by the Soya Bean Oil Solvent Extraction Company should not be sold before the investigations are carried out and a proper valuation of the project done, it says.

"The committee further recommends that after the sale of the equipment, the proceeds realised be remitted to the Exchequer," says the report.

Meanwhile, the PAC is questioning a Sh391.2 million loan to Rivatex factory of Eldoret in 1996 which was guaranteed by the public.

The factory has since been placed in receivership and PAC said it is worried the loans have not been serviced and continue to incur interest.

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