As part of the ongoing corruption investigations in Vihiga County Government, EACC on Thursday arrested one Dr. Noel Malanda, the County Chief Officer for Education for suspected extortion, kickbacks and other forms of corrupt conduct. She is believed to be running a graft scheme in her docket where she demands hefty kickbacks before any contract award and further before any payments are made for completed works.
In this particular case, the suspect demanded Kes. 200,000 from a trader who had supplied ECD Certificates as a condition for approving his payment of Kes. 1.8 Million. During the arrest, the Commission recovered Kes. 400,000 in her office believed to be part of the money extorted from contractors. The suspect was unable to account for the seized funds.
She was booked at Kisumu Port Police Station pending investigative sessions at EACC Kisumu Regional Offices on Friday.
It is emerging that this Chief Officer, who has reportedly been in office for less than a year, has been verbally instructing contractors to commence works and deliver services without signed contracts, even in cases where the contractors have been procured procedurally. Upon completion of the works and supply of the services, she would demand bribes to issue contracts which would form part of the payment documents. Failure to give the bribes would see the payment delayed indefinitely.
Drawn to scandals, the embattled Turkana governor Jeremiah Ekamais Lomorukai, who the Ethics and Anti Corruption Commission (EACC) has accused of forging academic certificates once again finds himself in a now familiar bad book. Allegedly, he’s cheating his way to acquire a degree and has contracted someone to attend classes on his behalf should he fail to stop his case, we can reveal now.
The governor has been under fire for the last one year after EACC accused him of forging degree and diploma certificates purported to have been issued by the Kenya Methodist University (KEMU).
The governor is said to have used the alleged forged papers to seek clearance to successfully contest the gubernatorial seat which he won using an ODM ticket. He later jumped ship and started supporting the government in the hope of saving himself from prosecution.
Vitalis Ogombe (left) together with former Turkana East MP Ali Lokiru and governor Jeremiah Lomorukai. Ogombe who is the governor’s aide is being investigated for contracting fake students to study on behalf of Gov Lomorukai
But even as he waits for the courts and his new political allegiance to save him from the fake degree saga, the governor has invested into yet another fraudulent education scam that has caught the eye of investigators.
Apparently, the governor is undertaking a Diploma in Conflict Resolution at St Pauls University, Limuru. The only problem is – he does not attend classes or sit for exams. Someone else is doing it on his behalf using his full names Jeremiah Ekamais Lomorukai and ID number.
The fake student who was contracted by one of the governors aides Vitalis Ogombe not only goes to class and sits exams but is also part of the Whatsapp group for the course.
According to detectives aware of the case, the same fake student is also attending classes on behalf of the governor’s son Ekamais Ewesit at the Kenya Methodist University.
The governor’s son is pursuing a diploma in International Relations at KEMU, the same university where his father is accused by EACC of having forged its certificates in order to run for office.
According to investigators the son’s registration number is BIR-0-2116-1/22. He however does not attend classes. Detectives say, the same person who is studying on behalf of his father is also doing it for him.
Apart from studying on behalf of the governor and his son, the fake student also managed to sit for the 2023 Certified Public Accountants (CPA) Part 1 exams at the Multi-Media University College on behalf of Vitalis Ogombe, the Turkana chief executive’s aide.
The exams were held between Monday August 21 and Thursday August 24, according to a preliminary report. Ogombe passed those exams which he did not sit for. He later graduated with a Masters Degree from the University of Nairobi on December 15.
Things however fell apart after the fake student felt that he was being taken for a ride and the promises he had been given by Ogombe were no longer being met despite him fulfilling his end of the bargain. He reported the matter to the police immediately after assisting Ogombe to pass exams he never sat for.
However, when the matter was leaked to the press in November, the governor resorted to underhand tactics using lawyers to threaten journalists to back off the story. His lawyers wrote to media houses claiming he was being extorted. This forced journalists to back off for fear of losing their jobs.
At the moment detectives have now put Ogombe at the centre of the fake academic certificates surrounding Governor Lomorukai and have turned their guns on him. EACC which has been unable to prosecute the governor since 2022 believes it has now found a break through in the case.
In February last year, the High Court dismissed Governor Lomorukai’s bid to stop his arrest over the forgery of his academic papers.
Justice Reuben Nyakundi rejected the governor’s application for anticipatory bail pending the hearing and determination of the suit where he was challenging the decision by EACC to arrest him over allegations of a “fake degree”.
“The petitioner(governor Lomorukai) has failed to demonstrate that the EACC and the DPP, Inspector General of Police have breached his fundamental rights to freedom or that there exists any threat of his rights to warrant the grant of anticipatory bail. The petition has no merit and accordingly it is dismissed,” Justice Nyakundi ordered.
According to an affidavit filed in court by EACC investigator Celestine Owiti, investigations against the Governor were necessitated by the a complaint lodged on January 27, 2017 alleging that he had irregularly and fraudulently acquired a degree in Bachelor of Arts in Counseling from the Kenya Methodist University (KEMU).
It was further reported that Lomorukai sat the 1994 KCSE examination in Lodwar High School and attained a C-(Minus), which made him ineligible to join university for an undergraduate course.
When the complaint was lodged at the EACC, Lomorukai was a Member of County Assembly of Turkana and was vying for the position of Member of Parliament for Loima Constituency which he won.
The commission further informed the court that the investigations into the matter established that the Lomurukai had applied for a pre-university programme at KEMU in January 2012, and soon after, before completing the pre-university programme, purported to have applied for a diploma in counseling in the same year.
EACC says KEMU has no records of Lomorukai registering for the diploma course.
Nairobi Anti-Corruption Court has, today, ruled that former Kiambu Governor Ferdinand Waititu Baba Yao and his wife Susan Wangari Ndung’u have a case to answer in relation to a Kes.588 million fraudulent tender.
Among those charged alongside the Waititus is the Director of Testimony Enterprises Limited, the company at the centre of the scandal, Charles Chege together with his wife Beth Wangeci.
Chief Magistrate Timothy Nzioki said that the prosecution had established a prima facie case against the accused persons and accordingly put them on their defence.
EACC arrested and arraigned the accused persons in July 2019 after the DPP concurred that they be charged with five (5) offences namely conflict of Interest, dealing with suspect property, abuse of office, money laundering, engaging in fraudulent procurement practice and willful failure to comply with procurement laws and regulations.
The accused will defend themselves before the court from 18th-21st March 2024 after which the Court will deliver its Judgement.
The Waititu ruling comes 2 months after the Anti-Corruption Court similarly found former Samburu Governor Moses Lenolkulal with a case to answer in a graft case involving Kes. 84.7 million.
Investigations established that Lenolkulal traded with Samburu County Government in the name of Oryx Service Station, which he owns, by supplying fuel worth over Kes. 84 Million. He was charged with abuse of office, conflict of interest and unlawful acquisition of public property.
Besides the criminal cases facing the two, EACC has active civil suits in court seeking recovery of suspected stolen public funds from both Waititu and Lenolkulal. The High Court has since issued orders freezing Waititu’s unexplained wealth valued at Kes.1.9 billion.
Other former and sitting Governors with active graft cases in court include Daniel Waithaka (Nyandarua), Okoth Obado (Migori), Evans Kidero (Nairobi), Mike Mbuvi Sonko (Nairobi), Sospeter Ojaamong (Busia), Mwangi Wa Iria (Murang’a) and Onesmus Muthomi Njuki (Tharaka Nithi).
Relatedly, 21 others are under active investigations for alleged theft of billions of public funds while files involving 4 are under consideration by ODPP.
Cabinet Secretary for Water Sanitation and Irrigation Alice Wahome finds herself in trouble following a petition filed in court over the state of affairs at the Athi Water Development Agency.
According to the petition filed in a Nairobi High Court by Caroline Wambui Mwangi, the CS is being accused of obstructing ongoing corruption investigations at the State agency, which falls under CS Wahome’s docket.
Ms Mwangi through Robinson Maina Law Firm also wants the court to rule over the legality of the continued stay in office of Athi Water Development Agency Chief Executive Michael Thuita following the lapse of his second three-year term.
“Having served as the Chief Executive Officer since June 6, 2017, the first respondent (Thuita) has to date served for a cumulative tenure of six years, two months, and still counting, thus grossly violating the law on the tenure of office,” she says in court documents.
Ms Mwangi seeks a court order to compel Mr Thuita to vacate office, citing the ongoing investigations by the Ethics and Anti-Corruption Commission (EACC) into his alleged involvement in procurement irregularities related to several water projects.
Athi Water Development Agency Chief Executive Michael Thuita.
Earlier this year, EACC CEO Twalib Mbarak wrote to CS Wahome asking her to suspend Mr Thuita.
Mbarak said in the letter dated May 24 that the Commission is investigating procurement irregularities in the award of tender in the construction of Ruiru-II, Karimenu and Kitui Matuu Water Projects undertaken by the agency in which Thuita has been adversely mentioned.
“The CEO, being the accounting officer of the agency was involved in the implementation of these three projects. Therefore, there is a likelihood that his being in the office will interfere with the smooth provision of documents and persons who may be called upon as witnesses,” the EACC boss said.
Mbarak said the request is in line with provisions of the Leadership and Integrity Act which provides for the suspension of State or public officers mentioned in alleged graft.
“Regulation 25(2) of the Leadership and Integrity Act provides that suspension shall apply where the officer is likely to conceal, alter, destroy, remove records, documents or evidence,” the EACC boss stated.
He said the Act also provides for the suspension to ensure the officer in question does not intimidate, threaten or otherwise interfere with witnesses or the investigations in any manner.
25(3) of the Act, a suspended State or public officer shall be placed on half pay pending conclusion of investigations.
“To this end, based on the reasons stated, it is advised that you consider invoking the above-cited provisions and take administrative action against the CEO to pave the way for investigations,” he told CS Wahome.
Wahome’s Interference
The petitioner claims Mr Thuita’s extended stay in office is an attempt to hinder the ongoing probe, manipulate evidence, and silence potential witnesses.
Ms Mwangi argues that the CEO’s actions are
“not only contrary to the rule of law but also detrimental to the public interest and the agency’s accountability.”
“It is totally unlawful for Thuita to illegitimately and mischievously continue exercising the mandate vested in the office of the Chief Executive Officer of the agency in a manner that terribly exposes the public to grave legal liabilities,” she argues.
In her affidavit, Ms Mwangi alleges that the EACC had recommended the suspension of Mr Thuita during the course of its investigation, a recommendation that was ignored by CS Wahome.
Corruption has long plagued Kenya, hindering its development and undermining public trust in governance. Over the years, different regimes have come into power, each with varying approaches to tackling corruption.
This article explores the impact of regime change on Kenya’s war on corruption, highlighting notable achievements under former Presidents, Mwai Kibaki, Uhuru Kenyatta and the current president, Dr. William Ruto.
It is also examining the efforts of the Ethics and Anti-Corruption Commission (EACC) in curbing graft, particularly in state agencies like the Kenya Medical Supplies Authority (KEMSA), Kenya Ports Authority (KPA), and more.
Furthermore, we delve into the EACC’s strategic plans under the new chairmanship of Bishop David Oginde and shed light on Kenya’s global, continental, and regional rankings concerning corruption. Lastly, we discuss the EACC’s accomplishments under the new government led by President William Ruto.
Kenya’s War on Corruption: Kibaki Era strengthened institutions and unveiling anti-corruption measures
Under President Mwai Kibaki’s tenure (2002-2013), Kenya witnessed significant strides in combating corruption. Kibaki prioritized the establishment of strong institutions and enacted key legislation, such as the Ethics and Anti-Corruption Commission Act of 2011, to empower the EACC.
During this period, Kenya ranked 139th out of 176 countries on Transparency International’s Corruption Perceptions Index (CPI) in 2012, a marked improvement from its ranking of 144th in 2003.
Kibaki’s administration notably launched high-profile anti-corruption campaigns, resulting in the conviction of several prominent individuals involved in corruption scandals. Notable achievements include the arrest and prosecution of individuals linked to the Anglo Leasing scandal, Goldenberg scandal, and the National Youth Service scandal.
The Uhuru Kenyatta Era: Renewed Commitment and Expanded Scope
President Uhuru Kenyatta, who took office in 2013, continued the fight against corruption, renewing the government’s commitment to accountability and transparency.
Recognizing the need to address graft comprehensively, Kenyatta broadened the scope of anti-corruption efforts to target not only individuals but also institutions facilitating corruption.
Under Kenyatta’s leadership, Kenya witnessed the intensified scrutiny of state agencies, including KEMSA and KPA.
The EACC, with its increased powers and resources, played a vital role in investigating and prosecuting corrupt officials and individuals. In 2020, Kenya ranked 124th out of 180 countries on the CPI, reflecting modest progress compared to previous years.
Kenya’s War on Corruption: The Role of the Ethics and Anti-Corruption Commission (EACC)
The EACC serves as Kenya’s primary anti-corruption agency, responsible for preventing, investigating, and prosecuting corruption cases. It collaborates with other law enforcement agencies and the judiciary to ensure accountability and transparency in public service.
To curb graft in state agencies like KEMSA and KPA, the EACC has focused on proactive measures, including capacity building, training, and awareness campaigns for public officials.
The EACC has implemented systems to enhance financial and procurement controls, strengthen ethics and integrity frameworks, and promote whistle-blower protection.
President William Ruto and EACC Chairman David Oginde [p/courtesy]New Chairmanship: Bishop David Oginde’s Vision
Under the new chairmanship of Bishop David Oginde, the EACC aims to elevate its anti-corruption efforts to new heights.
Bishop Oginde brings a fresh perspective and emphasizes the importance of ethics, moral values, and public participation in the fight against corruption.
Bishop Oginde’s strategic plan for the EACC involves fostering a culture of integrity, enhancing investigative capabilities, promoting transparency, and engaging the public through robust anti-corruption education and awareness campaigns.
By fostering partnerships with civil society, media, and international organizations, the EACC seeks to create a united front against corruption in Kenya.
Kenya’s Global, Continental, and Regional Rankings
Image: Screenshot
Despite the progress made, Kenya still faces challenges in combating corruption. According to the 2021 CPI, Kenya ranked 165th out of 180 countries, indicating a decline compared to previous years.
However, it’s worth noting that the CPI rankings should be viewed as an indicator rather than a comprehensive assessment of a country’s anti-corruption efforts.
In Africa, Kenya ranks among the middle tier of countries regarding corruption, with some countries performing better and others worse.
Within the East African region, Kenya’s commitment to fighting corruption has positioned it as a leader, with ongoing collaborations to share best practices and strengthen regional anti-corruption frameworks.
Kenya’s War on Corruption: The EACC’s Achievements under President William Ruto
With the recent change in government under President William Ruto, the EACC’s role and achievements in the fight against corruption are yet to unfold fully.
The Ruto administration is expected to build upon previous efforts and reaffirm its commitment to transparency, accountability, and integrity.
This article represents the viewpoints of Cyprine Omogi, who serves as the Education Officer at the Ethics and Anti-Corruption Commission in Kenya. Omogi is known for being a strong advocate for transparency and the establishment of a society free from corruption.
The Ethics and Anti-Corruption Commission has recovered Ksh. 7.5 million fraudulently acquired from the National AIDS Control Council (NACC) by two individuals namely Job Keittany, the 1st Defendant who is deceased and Michael Chesikaw, 2nd Defendant.
According to a statement by EACC on twitter, the defendants were herbalists and researchers and the proprietors of a Community Based Organization known as Par Aid that received funds in form of a grant from the National Aids Control Council (NACC).
The commission says, the grant was intended for a study to test the efficacy of a herbal medicine in the treatment and management of HIV/AIDS and was to be carried out in partnership with Moi University where the tests were to take place.
EACC has noted that, instead of undertaking the study for which the grant was given, the defendants embezzled the funds and used forged receipts allegedly issued by Moi University to the tune of Kshs. 7,500,000 to account for the funds.
The recovery of the stolen public funds was realized through a civil suit filed by the defunct Kenya Anti-Corruption Commission (KACC), the predecessor of EACC on 8th August 2006 seeking orders to compel the two Defendants to pay back the amount together with costs and interest.
Delivering her judgement on 29th June, 2023, Justice Esther Maina determined that EACC had proved its case on a balance of probabilities and found the 2nd Defendant liable to compensate the National AIDS Control Council through EACC Ksh. 7,500,000 plus interest to be calculated from the date of receipt of funds in 2004 at 12pc per annum.
The Commission was also awarded costs to be paid by the 2nd Defendant because the 1st Defendant is now deceased.
In its findings, the High Court concurred with EACC that through a well -orchestrated scheme, the 1st and 2nd Defendants through the entity known as Par Aid (Herbalists and Researchers), opened a KCB account no. 241754201 for purposes of receiving the grant sum and withdrew the money which they used for personal benefit thereby unjustly enriching themselves at the expense of the National Aids Control Council (NACC).
The management of the Kenya Revenue Authority is under scrutiny for awarding tax waivers worth Sh3 billion to businesses through questionable dealings.
Due to collusion among KRA officials, certain lawyers, and firms, the government has been losing billions of shillings in the recomputation of taxes, waivers, and abandonment.
According to court documents, KRA filed a tax demand of Sh2.4 billion against Kingsway Tyres and Automart Limited following an assessment in 2004.
The tax assessment included more than Sh1.7 billion for income tax, more than Sh272 million for VAT, and the remaining amount for auctioneer fees. To enforce the demand, KRA attached Kingsway’s property through Speedman Commercial Agencies Limited.
However, on September 27, 2004, the taxman agreed to negotiate with Kingsway Tyres and Automart. During these negotiations to offset their tax obligations, Kingsway Tyres and Automart committed to deposit Sh1.5 million every week on Fridays.
KRA requested Speedman Commercial Agencies Limited to release the goods, and the previously closed offices of Kingsway were reopened.
Kingsway Tyres and Automart took the case to court to challenge the Sh2.4 billion tax demand. Unfortunately, they lost the case, and the ruling was delivered on May 16, 2006.
The ruling against Kingsway Tyres and Automart cleared the path for KRA to collect the Sh2.4 billion they had sought in 2004, as all obstacles were removed.
Following the failure of Kingsway Tyres and Automart to pay the taxes, two petitioners, namely Okiya Omtatah (now Busia Senator) and Mohamed Ahmed Mohamed, took the matter to court on July 2, 2014.
They challenged the alleged violation and infringement of fundamental rights and freedoms as stated in articles 27, 40, 46, and 47 of the Constitution, as well as the KRA Act, regarding tax evasion and the failure to comply with the court’s 2004 order to pay taxes.
Omtatah and Mohamed also contested the validity of Kingsway Tyres and Automart’s decision to “change its name and pin from P000606825c to Kingsway Tyres Limited pin number P051116728X” in order to obtain a clean tax compliance status and evade paying Sh2.4 billion in tax arrears.
They included several parties in the case, such as the KRA Board of Directors, Kingsway Tyres and Automart, Kingsway Tyres Limited, the Attorney General, the Director of Criminal Investigations, the Director of Public Prosecution, and the Ethics and Anti-Corruption Commission.
Other individuals involved in the case were former KRA Commissioner Generals Michael Waweru and John Njiraini, former EACC chair Mumo Matemo, and Speedman Commercial Agencies Limited.
KRA, represented by their lawyers Waweru Gatonye and Company advocates, made an application in 2019 seeking consent to collect the Sh2.4 billion from Kingsway Motors. The condition was that Omtatah and Mohamed would agree to withdraw the inclusion of several other people as defendants in the case, leaving only KRA, Kingsway Tyres, Automart, and Kingsway Tyres Limited.
The application was granted, but KRA was required to file a response, which they have failed to do so since 2019. As a result, the final determination of the cross-petition involving Speedman auctioneer, KRA, and Kingsway Tyres and Automart is still pending, awaiting KRA’s response.
KRA Board chairman Antony Mwaura said they would pursue all firms that received undue tax abandonment, waivers, and refunds. They will also investigate if there was collusion between staff members and these firms.
“As part of my achieving the target, I will ensure that KRA relook all the waivers, abandonment and exemptions that were offered to companies,” said Eng Mwaura. He said also on his radar were tax refunds that were offered to firms fraudulently.
“Through the help of Treasury, we will ensure unnecessary tax exemptions are reversed,” said Mwaura.
The Ethics and Anti-Corruption Commission (EACC) says the process to recover 26 acres of land that hosts Nyabola Girls Secondary School in HomaBay County is nearing its end.
According to the commission, individuals associated with the Kenya Lake Conference of Seventh-day Adventists of the South Kenya Lake Field fraudulently acquired the land and converted it into SDA church premises.
The commission believes that the land, which is registered in the name of the now-defunct South Nyanza Council (the predecessor to the current County Government of Homa Bay), also houses residential apartments.
“EACC on Friday, May 26, oversaw a boundary determination exercise undertaken on the site by Rachuonyo Sub-County Surveyor in the presence of EACC Officials from the Commission’s South Nyanza regional office and the Land Registrar.”
“The parcel of land that stands for the Nyabola Girls Secondary School, which started in 1968 as a public school but has since been converted into a private institution and renamed Nyabola SDA Secondary School.”
The form of dishonesty or criminal offense undertaken by individuals entrusted in a position of authority, in order to acquire illicit wealth or abuse power for selfish interest is corruption. The vice involves many activities including bribery and embezzlement of public funds.
In many cases, unscrupulous businessmen bribe government officials especially in the procurement department to take shorter time in to have their contracts approved and lock out genuine competitors.
But the vice is not only widespread in developing countries like Kenya where the people and the economy are the worst hit, it is also common in kleptocracies, oligarchies, mafia and narco-states.
Data from 2022 Corruption Index (CPI) shows that many countries have failed to stop the vice as it ranks 180 countries and territories across the globe by their perceived corruptions levels in public sector.
Scoring on a scale of 0 (highly corrupt) to 100 (very clear), the study reveals that the global average has remained the same for more than a decade at just 43 out 100. Meaning, more than two-thirds have scored below 50, while 26 countries have dropped to lowest scores and 155 countries have either declined since 2012 or made zero significance against corruption.
Kenya for instance is ranked at position 123 with a score of 32 as the index reveals a serious stagnation across the globe despite each country facing its unique challenges. Even countries in top scoring region, European Union and Western Europe have been stagnant for more than a decade or declined over the past five years.
But countries with low scores especially from Sub Saharan Africa, Central Asia, Americas and Eastern Europe haven’t been abled to make significant progress due to restrictions and attacks on civic space and basic freedom space which heavily threatens security and stability, democracy and human rights.
Corruption is rife in public sector especially the National Police Services which is the most bribery-prone institution in Kenya. Recent research has found that 75% of Kenyans believe that most or all police officers are corrupt, and one-in-two Kenyans who have interacted with the police have admitted to bribing them.
The police force frequently engages in corruption crimes such as false imprisonment, fabrication of charges and abuse of human rights to extort bribes, but are rarely arrested or prosecuted.
Many leaders are also focused on economic recovery and not fighting corruption which is slowing economic growth through slashing of human capital and spending on education and healthcare.
In Kenya, corruption is deeply rooted in all almost every sector of the economy with all political outfits yearning for power promising to tackle it head-on to revamp the struggling economy.
“Leaders can fight corruption and promote peace all at once. Governments must open up space to include the public in decision making – from activists, business owners to marginalized communities and young people. In democratic societies, the people raise their voices to help root out corruption and demand a safer world for all”. Daniel Eriksson, Chief Executive Officer, Transparency International.
Leaders of previous Kenyan governments have admitted that the country is losing one-third of its budget to the vice. A senior official from the National Treasury once told a parliamentary committee that the country is losing more than $4bn every year.
There are several reports of top government officials diverting huge sums meant for development projects and education to their personal pockets. And as things stand, many citizens are not surprised by the news of the losses, but by the fact regimes led by different officials embrace corruption by pocketing through kickbacks and bending of procurement regulations.
Taking 10% of any awarded government tender or inflating project costs are the commonest tricks of dipping into government coffers. Corruption has been reported in all successive regimes with efforts by anti-corruption commission causing ripples in government quarters as sleuths struggle to prosecute corrupt state officers.
It has resulted to unemployment, high levels of poverty, increased insecurity, kidnappings, cultism and cattle rustling. The regime of the day has emphasized its commitment to de-politicize and remove weaponization of the criminal justice system in its war against graft. It argues that the move will allow the relevant institutions to freely exercise the independence given to them by the Constitution.
A section of politicians allied to the new administration accused a retired regime of subjectively and wrongfully targeting them with graft charges in the run up to the last general elections.
But as the as war to defeat corruption rages, the country has also witnessed the Office of the Director of Public Prosecution [ODPP] withdrawing high profile graft cases facing top state officials.
Critics and opposition politicians questioned the move, independence of the ODPP and the timing of the withdrawals while others have defended the move, arguing that some cases were fabricated by the former regimes for political reasons.
Some legal experts also argue that withdrawals could be a pointer to the fact that the ODPP was not working independently while prosecuting the cases but was acting under duress from political forces in the past regimes.
A survey conducted in 2017 showed that 67% of Kenyans do not believe that the government is putting enough effort to curb corruption. The respondents rated the anti-corruption performance of the previous regime as average, while the judiciary and legislative service were rated as poor.
The current regime has pledged to allow the relevant institutions to freely exercise the independence given to them by the Constitution to prosecute corruption and economic crimes.
Cyprine Omogi is Education Expert and Anti-Corruption Crusader.
In our continuing series, Seaman Lobby Group in a letter addressed to Ethics and Anti-Corruption Commission Integrity Centre (EACC) and copied to Kenya Insights, Integrity issues have been raised about the Principal Secretary Fir Shipping and Maritime Nancy Karigithu in her capacity as the Acciunting Officer of Kenya Maritime Authority (KMA) in 2014 where she’s accused of overseeing a corrupt procurement of the new KMA Headquarters land under Tender Number KMA/LAN/ONT/005/2014-2015.
Belowbis a statement from the lobby group that accused her addressed to EACC’s boss Twalib Mbarak;
I refer to the subject matter and various public allegations.
I, Ahmed Mabrouk, the Founder and Coordinator of Macho ya Baharia Lobby Group, Mombasa; pursuant to Article 3(1) of the Constitution and in exercise of the Freedom of Expression guaranteed under Articles 33 of the Constitution; invoking the protections guaranteed under Section 65 of Anti- Corruption and Economic Crimes Act (Cap 65); hereby formally submit to you a Complaint Concerning Corrupt Conduct by Nancy Karigithu, the current Principal Secretary of Shipping transportation under Ministry of Transport.
Nancy Karigithu was the long-serving Director General/Accounting Officer of Kenya Maritime Authority (KMA) when under tender no. KMA/LAN/ONT/005/2014-2015, she oversaw procurement of the land on which sits the new KMA headquarters, in a procurement process replete with corruption in contravention procurement laws and other applicable laws, in the following instances:
(a) Nancy Karigithu occasioned Government to buy its own land when Tile & Carpet Centre (TCC) Ltd sold KMA land that is still owned by Kenya Railways Corporation (KRC).
(b) Nancy Karigithu failed to conduct the required diligence before purchasing the said land leading KMA to pay Tile & Carpet Centre Ltd over Sh. 200 million, for a lease that now stands at 44 years, reducing.
(c) Nancy Karigithu failed to conduct tender Financial Evaluation as required by law.
(d) Nancy Karigithu failed to keep (or, it is alleged she confiscated/destroyed) important records pertaining to the land purchase.
(e) Nancy Karigithu paid Tile & Carpet Centre Ltd 10% down payment on 7th December 2014 and yet the contract was signed on 23rd December 2014.
(f) Nancy Karigithu paid a total of Sh. 202,800,150.00 for land which was valued by Government at Sh. 150,000,000.00.
(g) Nancy Karigithu paid total Sh. 202,800,150.00 when the approved budget was Sh. 200 million.
(h) Nancy Karigithu signed the Agreement with Tile & Carpet Centre Ltd as a witness and not as the KMA Accounting Officer.
In brief, information availed to us shows that during the vicious war (2016 – 2018) between Nancy Karigithu (who was PS Shipping and Maritime but then not in charge of KMA) on one side and the KMA Board of Directors on the other side, Nancy Karigithu instigated the audit of KMA by requesting the PS for the State Department for Transport (who was then in charge of KMA) to cause the audit of KMA. PS Transport wrote to the Inspector General of State Corporations vide letter Ref. MOT&I/C/SM/015VOL dated 17th July 2017, requesting the State Corporations Advisory Committee (SCAC) to audit KMA.
As fate would have it, in a classic case of “hunter becomes the hunted”, the Audit Report fingered Nancy Karigithu (the audit instigator) for being responsible for loss of millions of public monies in the December 2014 procurement of the KMA headquarters land. (See ANNEX I: copy of the SCAC the Auditor’s Report and ANEX II: copy of the initial “transmittal letter”, both documents sent on 9th February 2018 by SCAC’s Margaret Chebii: [email protected] to Titus Muriithi: [email protected], the immediate former Inspector General of State Corporations).
Nancy Karigithu could not countenance the unexpected development. And so, a plot was hatched to sanitise Nancy Karigithu.
Macho ya Baharia Lobby Group have obtained a heavily redacted copy of letter ref. ISC/INS/POL/101/TY (13) dated 9th January 2018 which was intended to communicate the Audit Report and findings and recommendations to PS for the State Department for Transport, who had requested for the audit. (See the enclosed ANNEX III: copy of the heavily redacted letter ref. ISC/INS/POL/101/TY (13) dated 9th January 2018)
The letter heavily redacted letter contains recommendation “x” that states thus:
The Parent Ministry should take appropriate disciplinary action against Mrs. Nancy Karigithu, for negating her responsibility as an accounting officer at time of the execution of the land sale-agreement by signing as a witness contrary to Section 7(c) of the Public Procurement and Disposal Regulations of 2006.
Macho ya Baharia Lobby Group understand that both the Auditor’s Report and the transmittal letter were altered to remove any negative references to and allegation of corruption by, Nancy Karigithu. A cursory scrutiny of the heavily redacted letter indicates that the immediate former Inspector General of State Corporations Mr Titus Muriithi (who has since been charged by ODPP in the Kimwarer and Arror dams scandal) had signed the initial letter – with the recommendation for disciplinary action to be taken against Nancy Karigithu – before changing his mind.
Notwithstanding the attempt by the immediate former Inspector General of State Corporations to ‘sanitise’ Nancy Karigithu, Macho ya Baharia Lobby Group expect EACC to conduct independent investigation into the present Complaint Concerning Corrupt Conduct by Nancy Karigithu. As such, the SCAC Audit and its findings and recommendations should be treated only as indicative of corruption that warrants EACC investigation.
Macho ya Baharia Lobby Group understand that numerous other similar complaints against Nancy Karigithu that were previously reported to EACC were swept under the rag. For example, in January 2016 EACC ‘sanitised’ Nancy Karigithu during National Assembly vetting for PS position despite, EACC acknowledging to the Clerk of the National Assembly that it (EACC) was in possession of information where Nancy Karigithu was adversely mentioned in corruption cases. (See the enclosed ANNEX IV: copy of the letter of the Clerk of the National Assembly ref. KNA/COMM/APPT/2015 dated 9th December 2015)
So, is Nancy Karigithu ‘untouchable’? Maybe. Macho ya Baharia Lobby Group have obtained an unflattering audio recording of a conversation between Nancy Karigithu and an acquaintance, where Nancy Karigithu is bragging to that acquaintance that she (Nancy Karigithu) is “very powerful” and alleging that she is “protected” at the highest levels. This is wrong because we do not imagine Government – at any level – condones corruption or protects corrupt State/Public officers. (Please let us know whether the said audio recording may be of help to you, since now you may wish to ascertain whether Nancy Karigithu has been executing her duty(ies) under the dictates of Chapter Six of the Constitution and the Leadership and Integrity Act, 2012)
In conclusion, therefore, we believe this letter has established and communicated to you a prima facie valid Complaint Concerning Corrupt Conduct by Nancy Karigithu under tender NO. KMA/LAN/ONT/005/2014- 2015, which warrants immediate investigation(s) by EACC.
Please note, in the event that EACC is unable to commence investigation(s) by 1st July 2020, Macho ya Baharia Lobby Group will, as the next recourse in pursuit of justice for the people of Kenya, petition:
(a) The Commission on Administrative Justice, to inquire into the Complaint Concerning Corrupt Conduct by Nancy Karigithu; and
(b) The National Assembly Departmental Committee on Transport, Public Works and Housing, to censure Nancy Karigithu.
We look forward to expedited investigations into Complaint Concerning Corrupt Conduct by Nancy Karigithu in order to bring justice to the Kenyan people.
We commend you for EACC’s recharged impetus in the fight against corruption.
Yours faithfully,
Ahmed Mabrouk
MACHO YA BAHARIA – SEAMAN LOBBY GROUP
The High Court has ordered the freezing of bank accounts of a construction company following a graft case filed by the Ethics and Anti-Corruption Commission (EACC).
The EACC filed the case in an effort to recover an irregular payment of Ksh 36 million from Hartland Enterprises Limited for work not done.
The company belonging to one James Oyukah and his wife Mary Oduor is alleged to have received the payment from Homa Bay County Assembly for services not rendered.
As per the court’s sitting in Nairobi, the EACC was ordered to freeze the private contractor’s account until the case is concluded.
Justice Daniel Ogembo in his order stated that the cash received was from the public coffers.
The money was allegedly misappropriated in a multimillion-stalled project of the Homa Bay MCAs’ office block in Homa Bay town.
According to the statement by the court, the cost of implementation of the entire project was worth Ksh 348 million.
The work commenced on August 12, 2019, and was to take 78 weeks to be completed.
Homa- Bay County Assembly Service Board had paid the company more than Ksh 66 million for the construction work whereas the anti-graft commission, upon assessment and evaluation of the project, established that the work done by the contractor was worth only Ksh 30 million.
The EACC also established that the contractor received the money but failed to accomplish the work. Similarly, the commission established that the board irregularly paid Ksh 36 million in favour of the contractor.
In the ruling, Justice Ogembo barred the duo from accessing the bank account at Co-operative Bank for a period of six months until the case is heard and determined.
The case is set to be mentioned on September 27 this year.
Anti-graft agency is probing a senior manager at Kenya Electricity Transmission Company (Ketraco) over allegations that he amassed great wealth through corruption.
The Ethics and Anti-Corruption Commission (EACC) filed an application at the High Court seeking an order to freeze the accounts and properties of Ketraco supply chain manager Peter Maina Njehia and his wife Julie Hellen Matu over suspicion that they are proceeds of graft.
EACC, through lawyer Pius Nyoike, claims Njehia bought several parcels of land, apartments and high-end vehicles with money he made through corrupt deals at the electricity company.
“Our investigations have revealed that contractors and suppliers to Ketraco have been bribing senior officials, including Njehia, to facilitate payments and awarding of the contracts. We suspect that he used the money acquired through corruption to acquire the properties,” said Nyoike.
The commission claims that Njehia was employed as Ketraco’s senior manager in charge of supply chain management in December 2016 with a monthly salary of Sh326,745 but within five years, he had acquired properties that are not commensurate with his earnings.
According to documents filed by the EACC in court, Mr Njehia’s salary between 2010 and March 2021 stood at Sh35.7 million-plus imprest amounting to Sh4.48 million.
It is alleged that Mr Njehia used his position to influence and award tenders at Ketraco and the Ministry of Transport, where he previously worked.
“The respondent has illegally and irregularly engaged in the influence and award of tenders, procurement and payment of goods and services, which has seen him abuse his office, receive bribes, embezzle public funds and engage in corrupt conduct,” the EACC said in the petition filed before the anti-corruption division of the High court.
“There are reasonable grounds to suspect that the respondent herein has accumulated assets disproportionate to his known legitimate source of income and money in the listed SACCO accounts should be preserved pending completion of the subject investigations,” the EACC told Justice Maina.
The properties in question include 18 parcels of land in Nakuru and Kiambu counties, three apartment blocks in Nakuru and Nairobi, and nine vehicles.
EACC wants Njehia’s accounts at Stima Sacco Society Limited operated in his wife’s name frozen. The agency says Njehia has been using the Sacco, through his wife, as a conduit for illicit funds to avoid being caught.
In an affidavit, EACC investigator Shadrack Mwenda said they had been investigating allegations of bribery, conflict of interest, unexplained wealth and corrupt conduct by public officials at Ketraco when they discovered that Njehia was part of the scheme.
Mwenda alleged that Njehia was part of Ketraco cartels who have been demanding and receiving huge bribes from contractors.
“He used the illegally acquired funds to purchase shares at Stima Sacco in the name of Julie Hellen Matu. Investigations have revealed that purchase of the shares and deposits in the accounts were meant to conceal source and movement of the funds,” said Mwenda.
According to the investigator, internal investigations by Ketraco had indicted Njehia, who was accused of failing to appoint a tender committee, instructing Sh30 million payments to a contractor without authority and awarding some tenders without approval.
“The actions of Njehia and the circumstances under which some stated properties were acquired indicate that cash transactions were sent to the vendors immediately after executing the sale agreements, which raised suspicion to the source of his funds,” said Mwenda.
He added that when they conducted a search at Njehia’s house, they recovered Sh1.2 million in cash, which the manager and his wife failed to explain the source.
The Ethics and Anti-Corruption Commission (EACC) says the multi-million shilling assets acquired by Peter Maina Njehia in the 11 years to 2021 were the proceeds of crime and do not match his known income.
The anti-graft agency moved to court in December 2021 and obtained orders freezing about Sh58.5 million held in several SACCO accounts under Mr Njehia’s name and that of his spouse.
Justice Esther Maina granted the order freezing the money for six months pending the conclusion of investigations.
The money frozen includes Sh25.4 million worth of shares in two accounts at Stima Sacco, Sh10 million shares in Unaitas, another Sh8.2 million shares in a different account at Unaitas and Sh930,000 in a dividend account at Unaitas.
Kenyan politics scenarios has become a case of replacing garbage with garbage, the more things keep changing, the more they remain the same. Corruption has been heavy in the counties, the control of billions has seen big men with dark pasts leave last luxurious positions to vie for the governorship.
In Northeastern Kenya which is going to be our part of discussion on this article, governors continue to impoverish the residence while themselves turn into overnight billionaires. Today, there’s no single county in the region whose governor is not fighting a corruption case.
The filth has attracted flies ready to have a good meal.
Former EACC boss Halakhe Waqo has launched his Isiolo gubernatorial quest promising to deal with graft and revive the economy.
Mr Waqo accused Governor Mohamed Kuti and his predecessor Godana Doyo of underdevelopment saying the achievements made so far were not commensurate to the billions disbursed to the county since inception of devolution in 2013.
Waqo whose tenure was riddled with controversies including bribery claims made on him and ran a totally toothless anti-graft agency then, has said he will use his experience at the EACC to end corruption that had denied residents development and affected provision of services.
Mr Waqo declared that he will contest for the Governor’s seat on ODM ticket.
If elected, Mr Waqo said he will inject resources into Small and Medium Enterprises and give local contractors work to revive the ailing economy.
He also promised to resolve protracted land disputes to ensure residents develop their properties and use them as collateral to access loans for economic empowerment.
“My work is to catalyze development and uplift the lives of our people in a fair manner regardless of their tribe and religion,” he said.
Former EACC boss Halakhe Waqo hoisted high by his supporters during a meeting at Mulata on February 20, 2022. He accused Governor Mohamed Kuti and predecessor Godana Doyo of underdevelopment and promised to fight graft in the devolved unit if elected Isiolo Governor in August polls. Photo credit: Waweru Wairimu I Nation Media Group.
While it sounds good on political podiums that an ex-EACC boss while champion fighting corruption in his tenure, in books, Waqo’s history leaves a lot to buy such rhetoric.
Kemsa Scandal
For those who don’t know, the former anti corruption boss was adversely mentioned in the Kemsa saga that saw taxpayers lose billions to tenderprenuers at a time when the pandemic was crashing the economy.
Waqo was in March 2021 probed by a parliament committee following revelations by Ms Zubeda Nyamlondo, a director of Aszure Commercial Services a company implicated in a Sh347M scandalous tender to supply facemasks to the Kenya Medical Supplies Authority (Kemsa).
Waqo’s name popped up following a sustained probing by the committee members for the witness to provide details of ownership and how the firm sourced for funds to finance such large contract having only done business worth Sh8 million in the previous years.
Waqo confirmed to the that he was a loan guarantor to tge furniture supplies company that won a Sh347 million tender to supply facemasks to Kemsa.
He told the parliamentary committee that he had been approached by a manager at First Community Bank (FCB) – where he and directors of the firm are customers – whether he could provide security to a loan Aszure Commercial Services had sought to finance the Kemsa deal.
Unconvinced that Waqo was merely a loan signatory, the committee summoned Mr Waqo to establish whether he is the faceless owner of Aszure Commercial Services and only fronted Ms Nyamlondo to hoodwink the public.
The lawmakers also wanted to establish why the company, which had an account at Kenya Commercial Bank, decided to go to First Community Bank(FCB) for a loan.
After taking his time, his answers during the grilling painted a clearer picture of a larger conspiracy that did not only involve proxy managers but included bank officials from FCB and put Waqo right in the middle as the major stakeholder.
Waqo denied direct links to the firm.
And this is where it gets suspicious and puzzling, Waqo told the parliamentary committee that he had been approached by a manager at First Community Bank (FCB) where he and directors of the firm are customers whether he could provide security to a loan Aszure Commercial Services had sought to finance the Kemsa deal.
MPs were puzzled as to the nature of relationship that Waqo holds with the bank that the manager had the confidence to approach him as a guarantor and more so what was the bank’s interest in sourcing for a guarantor for a customer. In a normal setting, the customer approaches the bank for a loan with a guarantor in hand. The complex relationship between the bank, Waqo and the firm left more questions than answer as to the bigger common interest of all the three parties.
MPs question that wasn’t answered was why Aszure didn’t seek a loan from KCB where the firm hold its accounts and instead went for FCB. It is unconvincing that Waqo would fund a project for people whom he doesn’t know only relying on the bank’s managers word which also leaves a lot to speculate about their depth of relationship. One can certainly tell who the faceless owner of Aszure Commercial Services is.
FCB is associated with Senior Counsel Ahmednasir Abdulahi and others claim that Waqo too holds stakes in the bank.
And more scandals
In 2014, EACC put the president in an embarrassing situation when it handed him a list of alleged thieves which he presented to parliament during his state of the nation address.
Most of those mentioned were never prosecuted due to lack of evidence.
At one time an infuriated Uhuru on learning the wild goose chase that the commission had sent him on publicly dressed down Waqo at a State House function.
“We Waqo wewe ulinisimamisha hapo mbele ya bunge nikafuta mawaziri…mpaka wa leo, after two years hujaniambia where their guilt is,” the president lambasted him.
According to Adan Guracha, the then EACC lead detective in the scandal, Waqo used the proceeds to build a six-storey building in Isiolo town.
In a sworn affidavit, Guracha also revealed how Mr Waqo ordered him to discontinue investigations into the fraudulent compensation of the Lamu Coal-fired Power Generation project in 2017.
“When he tabled information linking Dido and Sons limited to the fraudulent pay of over Ksh100 million, Waqo intimidated him and directed him to handle other cases,” the affidavit read.
While Waqo’s path with scandals remain in plain sight, he was appointed Chairperson of the Universities Fund Board on his exit from the anti graft commission which came in the heights of many having lost confidence in the commission.
He now seeks to be Isiolo’s Governor and claims to be a saint, choice is yours, for us it’s just giving you reminders of whom you’re dealing with.
The 21.04 hectares located in Nairobi’s Industrial Area on Road B, off Enterprise Road, belong to the Kenya Meteorological Department (KMD). The land houses a meteorological station with a transmitter, generator rooms and staff quarters.
The irregular allocation is the subject of an audit query by Auditor-General Nancy Gathungu on the accounts of the ministry for the 2019/20 financial year.
The Ethics and Anti-Corruption Commission (EACC) revoked titles for the 21.04 hectares prime land block/209/24794/81, located in the city’s industrial area on road B off Enterprise Road.
Despite High Court revoking the land in 2020, another company, Swing Investment Company sued the Meteorological Department seeking a portion of the 21.04-hectare land.
PAC recently summoned five companies that had earlier grabbed the land but lost it through the EACC court action.
They had also secured title deeds. Hillbrow Properties Limited allocated itself 3.998 hectares, Brentwood Traders Limited 3.656 hectares and Pamba Properties Limited 2.968 hectares. Varun Industrial Credit Limited had 6.259 hectares while Beacon Towers Limited got 4.731 hectares.
Hillbrow was incorporated on November 13,1995, Varun on May 11, 1995 and Pamba on January 15, 1996. Brentwood was incorporated on September 1, 1997 and Beacon on September 10, 1997.
PAC also established that, at the incorporation of the five companies, there were two shareholders, Kantibhai Maganbhai and Harish Ashabhai Patel.
EACC went to court in 2009 and on August 3, 2020, Environment and Land Court Judge E.O Obaga revoked the five title deeds after it established that they were fraudulently obtained. There was no appeal.
Who could be the owner of the backing dog?
PAC said its preliminary investigations reveal that the five companies are owned by one individual. Hillbrow Properties limited, Brentwood Traders limited, Pamba Properties limited, Varun Industrial Credit limited and Beacon Towers limited. The five private companies subdivided the 21.04-hectare land into equal portions and allocated it to themselves.
Documents tabled before Parliament show that the five companies are owned by two individuals, Kantibhai Maganbhai and Harish Ashabhai Patel who owned 99 shares and one share respectively.
At the incorporation of the five companies in the late 1990s, Mr Maganbhai owned majority shareholding before his death in December 2007. A third director in all the five companies Pritibala Shah, the daughter of Maganbhai, was appointed on June 15, 2007, but without any share according to the judgment.
Despite grabbing a government land. No civil lawsuit has been taken against the musketeers. Either Untouchable or the same Government officials in the relevant institutions are cahoots.
Director of Meteorological Department Stella Aura and the Environment ministry legal officer Annie Syombua confirmed there have not been any criminal proceedings against Mr Maganbhai and Harish Ashabhai after they lost a bid to fraudulently claim ownership of the 21.04 hectares.
MPs claimed there might be a wider plot by some ministry officials to collude with the owners of the companies to grab the land.
Kenya insights can’t acertain but believe that the aforementioned campany swing ltd might be a shell of the busted landgrabbers to again grab the land. Perhaps, army barracks should be camped at the site of dispute if that’s what it takes to tame these landgrabbers. If you know you know.
President Kenyatta had issued an executive order that the land be handed over to the housing department for the Mukuru slum upgrading project but some few moles in government agencies in cahoot with the Patels are still battling for a portion of the land.
A deputy director of external resources at Treasury has been barred from collecting rent from houses in Matungulu, Machakos County that is being targeted for forfeiture to the government.
Anti-Corruption Court Judge Esther Maina barred Charles Muia Mutiso from demanding, collecting or receiving monthly rental income from the houses, pending the determination of the case filed by the Ethics and Anti-Corruption Commission.
The Judge also prohibited Mutiso from dealing with funds in three bank accounts held at Absa Bank, Co-operative Bank and KCB Bank.
In the ruling, the court allowed EACC to appoint a receiver for the collection of the rental income, the management and control of the property known as LR No. Matungulu Sengani/3503.
The house consists of six units of two bedrooms each. The court further restrained Mutiso, his agents, servants or any other persons from selling, charging or dealing with the property, which property valued at Sh8 million and another parcel in DOnyo Sabuk, valued at Sh3.5 million.
“An order of injunction is hereby issued restraining Charles Mutiso, his agent and servants from transferring, disposing, wasting or in any other way dealing with motor vehicle Toyota vanguard KCH 393M,” court ordered.
The court directed Mutiso to surrender the logbook of the said motor vehicle to the EACC within seven days, failure to which the commission shall be at liberty to seize, tow and detain it.
The Judge ruled that EACC had demonstrated a prima facie case and that it shall suffer irreparable loss which cannot be compensated by an award of damages, if the order was not granted.
“It is also in the public interest that the assets of the subject matter of the suit be preserved pending hearing and determination of the recovery proceedings,” observed the judge.
The commission moved to court to restrain Mutiso from dealing, selling or transferring the assets which are under investigations over suspicion that they are proceeds of crime.
However, Mutiso filed at the High Court seeking for an order allowing him to access and deal with his five parcels of land in Nairobi and Machakos counties.
He claims that the monies in the bank accounts and the properties were not obtained through corrupt conduct or illegitimately, as alleged by the EACC, adding that he can account how he acquired his wealth.
Mutiso, the Deputy Director External Resources at The National Treasury is said to have Sh36.7 million deposited in four different bank accounts within five years.
Two ABSA Group Ltd accounts with Sh23,452,775.65 and Sh5,843,390.35 respectively, Co-operative Bank account with Sh1,932,167.53 and KCB account Sh5,557,735.20, are among accounts being investigated by the anti-graft and ethics agency.
“Investigations further established a pattern of frequent large cash deposits made mostly through the ATM or the drop box. For instance, in June 2015, he made five cash deposits of Sh400,000 each into his account at Absa Group account amounting to Sh2 million over just few days,” EACC says in a brief on their investigations.
The anti-graft body raised eyebrows over the cash since the Treasury official earns a monthly net salary of Sh118, 691- which amounts to Sh7.1 million within the period in question.
Mutiso, the anti-graft body says, has also acquired five properties; three in Nairobi and two within Machakos County.
All his bank accounts have since been frozen due to what the EACC terms as a “huge disproportion” between his assets and known legitimate income.
The period in question is between April 2015 and April 2020 when it is alleged “that he amassed wealth through misappropriation and embezzlement of public funds.”
“Analysis of the flow of funds in his bank accounts revealed that he received numerous unexplained inward remittances, EFTs and cash deposits outside his salary from the National Treasury.”
Mutiso joined the National Treasury as an Economist in July 2002.
In the course of his employment, he has served and travelled a total of 50 times to various countries representing Kenya.
Investigations by the Ethics and Anti-Corruption Commission (EACC) have established that on 28thFebruary 1967, the City Council of Nairobi (CCN) purchased eight parcels of land LR. No. 36/VII/253 – 260 from Pantaleao Assumpcao De Souza at a cost of Kshs. 28,000/=. This was executed through an Indenture of Conveyance before the parcels were transferred and registered in favor of CCN.
The properties were acquired for purposes of expanding the Pumwani Maternity Hospital which is a public referral maternity hospital offering maternal health care to the general public.
In 1995, the parcels were illegally allocated and transferred to various allottees using Indentures of Conveyance prepared in 2007 which were later registered between 2008 and 2010. The current registered proprietors of the parcels are as follows:
Parcels 253, 258, 259 and 260 are registered in favour of Kennedy Wainaina Ngenga
Parcels 254 is registered in favour Leading Developers Limited
Parcel 255, 256, and 257 are registered in favour Jama Musa Hussein
EACC has instituted the following recovery proceedings to restore the parcels to their intended public use against the registered proprietors in the Environment and Land Court:
ELC No. 94 of 2020EACC v Nelson Waswa Otido & 4 Others;
ELC No. 359 of 2021EACC v Leading Developers Limited & 6 Others and;
ELC No. 360 of 2021 EACC v Kennedy Wainaina Ngenga
There are Injunction Orders in force barring selling, charging, leasing, transferring, wasting, disposing or in any way dealing with the parcels of land.
Nairobi County Assembly is never short of drama. Former speaker Beatrice Elachi after endless fights, threw in the towel and resigned, Majority Whip Abdi Guyo has had his share of fight, a veteran in City Hall life, he was thrown out of his position before he got reinstated. The two leaders haven’t been in good books with each other for long. It all began the moment Elachi took over as the speaker assuming a managerial position and having a bigger say in the operations of city hall, at that time Guyo was in the assembly’s board and calling shots, this was a classic case of putting two rival bulls under same shade.
Their rivalry has played has played openly in the public arena. In 2019, Guyo sponsored a motion to impeach Elachi, it sailed and only to be reinstated later through a court order. Guyo ganged up with his goons and stormed into Elachi’s office in a well documented fiasco.
In the heights of the troubles, the then governor Mike Sonko intervened and eliminated Guyo as the majority leader.
Sonko in his dismissal letter said Guyo was a predicament in his implementation of jubilee policies and that his sustained attacks and intimidation towards the speaker and county staff could no longer stand.
Sonko has effectively nominated, Maringo Hamza MCA, Hon. Mark Ndung’u to take over from Guyo as the majority leader. Guyo fought his ways and was later reinstated by Raphael Tuju, sources privy to the intense lobbying leading to the reprieve confides that the Sec Gen gave in after getting his hands greased. Tables have since turned on Tuju, he’s facing imminent ouster from the jubilee party.
Guyo has had run ins with the authorities, having been in City Hall for over a decade since he started as a councilor, has a wide scope of networks, the man now eyeing a parliamentary seat has amassed wealth that doesn’t align with his salaries, Guyo has been a subject of investigations over suspicions of corruption but has escaped the dragnets thanks to his networks in the investigating bodies.
Guyo has been under EACC investigations in which Investigators found a direct link between Guyo and Flexilease Limited, one of the garbage collection companies implicated in a scandal that EACC was investigating how money from the bank accounts of the garbage collection companies ended up in Sonko’s private bank accounts.
Flexilease was being investigated for receiving payments for services not delivered and making the Nairobi County government pay for ghost workers. Guyo, a close ally of National Assembly Majority Leader Aden Duale, is also being investigated over a scam involving public toilets in the city. He is accused of working with shadowy businessman identified as Abbas Khalifa to grab all public toilets.
According to sources close to the investigations, Guyo and Abbas pocket at least Shs 1 million each every week from the public toilets. Investigators were also probing the source of Guyo’s sudden wealth. He is said to be building a huge shopping mall in Isiolo and has properties spead across the city. One of our preying birds is telling us he recently bought an apartment in Buru Buru for one of his concubines, a journalist attached to City Hall.
Guyo recently got mentioned in Covid-millionaires saga in which he was accused of money meant for the vulnerable.
The fresh scam involved distribution of relief food to vulnerable families in Nairobi’s informal settlements as a cushion during the COVID-19 pandemic an idea of controversial Matopeni MCA Abdi Guyo. The scandal would see Sh84 million paid to shadowy companies associated with him and Kananu.
Six shadowy companies were paid for the supply of foodstuffs and other necessities but it was flagged by MCAs who alleged that nothing was supplied and money pocketed allegedly by Guyo and associates.
The foodstuffs that were to be distributed in the feeding programme include sugar, rice, loaves of bread and long-life milk, maize and wheat flour as well as other items such as blankets, sanitary pads and basins.
‘I want to confirm that this is a COVID-19 billionaires scandal since some of the slums listed to have benefited from the feeding programme never received the said foodstuffs,” said one of the ODM MCAs when we contacted him.
Here is a breakdown of the monies paid to the six companies associated with Guyo and his cronies at City Hall.
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We also conducted a search of the companies at the Registrar of Companies and we confirmed that the six companies are linked to Guyo and his cronies at City Hall. Here are the results of the CR12 from the companies.
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According to sources at the Nairobi City County Assembly, it would be difficult for the Ethics and Anti-Corruption Commission to prosecute individuals at the center of the scam since the EACC Deputy CEO and Director of Investigations Mohamud Abdi is a close associate of Guyo in their get rich business deals at City Hall.
Sonko on several occasions accused Abdi of being corrupt and wanted him stopped from investigating him. There are videos that were floated online allegedly of Guyo taking bribe stashed in a gunny bag to Abdi. At the time, Guyo was leading the battalion in the impeachment of Sonko. Sonko alleged that Guyo with his close ties with Abdi ganged up to frustrate and implicate him in dirty deals. Sonko in the same bad blood had accused Abdi of colluding with cartels to grab a land something he attributed to his tribulations with EACC.
“I would generally have a problem with individuals misusing public offices to cover-up for their crimes, while at the same time using intimidation, witch-hunt and arm-twisting tactics against those genuinely committed to fighting corruption and impunity in Kenya.” Sonko said when he accused Abdi of using his position as EACC commissioner to fraudulently facilitate grabbing of a land to his friend.
“In May 2014, one JOHNSON NYAGA KIBIRA (a former Nairobi County employee) attempted to build a Boundary Wall and a Gatehouse on Land Reference Number NAIROBI/BLOCK 103/793 in Mugoya Estate on Muhoho Road, South C which is a public utility plot earmarked for ECDE Centre/Playground for children in Mugoya Estate. When Mugoya Estate Residents reached out to me then as the Senator of Nairobi County, and we confronted the land grabber, we found that he purported to have a title for the land issued by County Council of Nairobi on 20th September 2012 although the land had been a playground for children since the estate was built.”
“On 27th May, 2014, we agreed with the residents that they report the matter to EACC and in a letter on the same date, Catherine Njiru of P.O. Box 59041-00200Nairobi wrote on behalf of the Estate Residents to EACC requesting for investigations into allegations of suspected fraudulent/irregular acquisition of the public land Plot Number NAIROBI/BLOCK 103/793 in South C. Evidence shows that the allegations of grabbing of that land were true and merited investigations as a matter of urgency.”
“On 16th July, 2014, EACC Director of Investigations Abdi A. Mohamud responded to Catherine Njiru vide letter Ref. No. EACC. 6/16/1 Vol, XXVIII (69)-46286noting receipt of the letter dated 27th May 2014. The letter acknowledged the allegations of suspected fraudulent/irregular acquisition of public land and promised to take the necessary steps to verify the same to inform action, as need be. Interestingly, the Director of Investigations also advised the Complainant that she “may seek further intervention from the National Land Commission” even though she had indicated it as a public land.”
“However, despite the undertaking, Abdi A. Mohamud as EACC Director of Investigations refused to investigate the complaint of Catherine Njiru at all, contrary to section 25 of the Anti-corruption and Economic Crimes Act, 2003 which makes it mandatory for EACC to investigate every complaint unless it dismisses the same in writing. It took another report to EACC 4 years later on 23rd July 2018 for the Commission to launch inquiry into the grabbing of the subject plot.”
“According to the intelligence I have, instead of investigating the complaint upon receipt, the EACC Director of Investigations Abdi A. Mohamud immediately used the information obtained from the whistle blower on the grabbing of the public land in South to appropriate the land for himself and his personal friend Isaack Abdullahi Ibrahim and the same plot had been transferred to him by 11th December 2014.“ Said Sonko in an explosive expose.
Fast forward to recent updates, while the former speaker left City Hall to become the Gender and Public Service CAS, troubles from the first have never stopped following her.
In the latest frenzy, the assembly adopted a report that recommended investigative bodies to probe Elachi for violation of the law and abuse office by usurping the powers of the County Assembly Service Board where she served as a chairperson board.
In its finding, the report suggested that promotion and recruitments of staff that took place in 2020 during Elachi’s tenure were against the law and were declared null and void.
However, Elachi defended herself and noted that it was pure malice for the assembly to call her ‘rogue’ as she was finishing a promotion process initiated by the late Alex Magelo who was her predecessor.
“Never has it been on record that I stole money while I was the Speaker. Everything I did is on record and It was not Elachi as a person but as the chairperson of the county assembly board. This is pure malice,” Elachi added.
Abdi Guyo who’s once again spearheading the calls for investigations on the speaker, insisted that Elachi is solely responsible for the irregular appointments.
”“The report is shocking and it reveals that everything was done following a decision by one person and not the board. This is an abuse of power,” Majority leader said.
Kenya Insights has obtained copies of the document that the scandal emanates from and can authoritatively say the decision for the promotions was approved and signed by the board members and not an individual as alleged by Guyo.
Journalists covering the City Hall scandals have become biased according to observations. Our birds say they’ve been properly compromised by the cartels to tell stories that are only favorable to them and in pushing convenient narratives. Brown envelopes have become part of the daily menu.
We’ve also obtained documents showing that Deloitte Kenya, was contracted by the County to research and recommend structural changes at City Hall who would improve service deliver. Deloitte was paid Sh5M.
To implement the recommendations, 2 more board members had to be recruited since it wasn’t fully constituted as recommended by the law. This recruitment process was presided over by the Public Service Commission and Strathmore University. The 2 members formed the part of directors who approved the questioned promotions.
Elachi is now headed to the courts to sue the Nairobi County Assembly for defamation.
Elachi said the assembly has continued to tarnish her name despite her willingly leaving the institution 14 months ago.
SPEAKER: Former Nairobi County Assembly Speaker Beatrice Elachi.
In what perhaps she saw coming, Elachi who terms all this political witch-hunt and settling scores, knew Guyo and alike would at one point come after her in leaving office and she left office with all copies of files she appended her signature for defense.
“We must do better than what the men do in this political arena. When I was resigning I made sure I had all copies that had my signatures and walked away with them.” Elachi said when she met women aspirants and the media at an event hosted by Journalists for Human Rights.
Elachi did this so that when someone tried to accuse her of corruption or any office related misappropriation, she has the documents to back her up.
“I realized that when you don’t steal money people will create stories like abuse of office. When you have documentation, you leave them to create the story then you come with your file and ask them to show you the abuse of office claims,” she said.
As accusations continue fly around, Guyo who’s said to be a supremo in City Hall, has become so powerful that the General Badi isn’t able to contain him, the two are said to be close together and coming from same ethnic group, Abdi who’s also close to a relative to the president and MCA, has managed to get into the good books with the president who is likely unaware of how dirty Guyo moves. Badi vowed to dismantle the cartels of city hall but that’s a wet dream.
So entrenched in looting public funds that Kenya Insights has learnt that Committee members are bribed with unwarranted trips, stipends. Recently, budgeting committee traveled to Turkey to discuss how to pay pending bills and budget for the country. This is something they could easily do in the boardroom or an hotel in the city or if it’s the itch of traveling, Mombasa or Naivasha would do, but no, public funds must be misused, such trips out members at the mercy of leaders to support their agendas before the table.
We’re also aware that the same committee is planning for a similar trip to Dubai to further misuse public funds while normal Nairobian thrive in burden. In the chain of looting, the devolution ministry officials who give approval to the trips are roped in. We’re told for every approval/per member, Sh5,000 bribe is given.
In the middle of the employment chaos, Guyo is accused of irregularly recruiting his relatives including a brother-in-law, cousin. Former clerk Jacob Ngwele who’s a close associate of Guyo is also accused of securing a job for one of the officers in investigative agencies and who was investigating the Trip by an associate Abass to Dubai. This he allegedly did to stop the Investigations.
In the corruption web at City Hall is a lady only identified to us as Nancy who is married to a banker with Central Bank, when Ngwele and team lost control of accessing funds , the husband played a big role in accessing the cash. Another lady who previously worked for City Hall and now with Judge Warsame who gave a favorable and controversial ruling in favor of Ngwele it remains a puzzle how in the ruling Warsame incorporated Edward Gichana who wasn’t part of the suit neither applied to be enjoined. Ruling rose suspicions and foul play. The web is wide and suspect.
It is an intricate web, what we’ve provided is just a shallow grave, in subsequent articles we shall dive in deeper. For now, a multi agency investigation should be initiated to unearth the truths and separate facts from fictions.
A senior procurement official at the Transport, Infrastructure, and Housing ministry is under investigation over Sh350 million tenders awarded to firms linked to him.
The companies associated with David Kinyae Isika allegedly received payments even in instances where no or partial supplies of goods and services were made.
After receiving payments, the money would be wired to Mr Isika’s bank accounts and those of his proxies and then used to acquire properties, according to court documents filed by the Ethics and Anti-Corruption Commission (EACC).
It has not disclosed the properties.
The EACC alleges in the case filed before the anti-corruption court that the official attached to the Housing department abused his position to award the contracts without competitive bidding as required by public procurement laws and regulations.
“The applicant [EACC] is undertaking investigations pursuant to the provisions of Sections 11(1)(d) and (j) of the Ethics and Anti-Corruption Commission Act, 2011, regarding allegations of embezzlement or misappropriation of public funds, conflict of interest and abuse of office,” says the EACC.
The court papers filed by the anti-graft body show that more than Sh77.4 million passed through Mr Isika’s bank accounts between 2014 and April this year despite him earning a cumulative salary of Sh8.3 million over the seven years.
The official earns a monthly salary of Sh149,348.
The anti-graft body says it is investigating the official on claims of misappropriation of public funds, conflict of interest, and abuse of office after information obtained from Integrated Financial Management Information System (Ifmis) indicated that one of the companies linked to him, Wanga-Tech General Enterprises, was awarded multiple tenders by the ministry.
The commission says Mr Isika and his spouse are directors of Wanga-Tech.
The EACC says it had obtained orders freezing two accounts linked to the firm in August but Mr Isika last month applied to access them. One of the accounts has Sh4.9 million and EACC says Mr Isika might get orders lifting the freeze before it completes investigations
The biggest chunk of the money was paid to companies associated with the official and his proxies from the Ministry of Land, Housing and Urban Development, Nairobi Metropolitan Services, and the Ministry of Infrastructure.
“There is reasonable suspicion, given the conflict of interest and abuse of office by the 1st respondent [Mr Isika] that the awards of tenders to the companies associated with the 1st respondent were vastly inflated or were procured through fictitious or irregular contracts secured uncompetitively through circumvention of the procurement laws and relevant laws,” the EACC says.
The commission obtained a warrant to search his offices and residential homes in April and later filed the petition prohibiting the transfer of the money or withdrawing them.
The companies linked to him or his proxies include Davinka Supplies and General Merchants Kola Traders ltd, Stalwart Entertainment Ltd, Nissy Liquor Wines and Spirits Ltd, and Brycen Innovations.
The EACC cites bank statements showing that from 2014 to date, Wanga-Tech received Sh90.4 million for contracts at the Ministry of Lands. Other beneficiaries of the contracts were Davinka Supplies (Sh127.8 million), Kola Traders (Sh33.9 million) and Brycen Smart Innovations which received Sh68.5 million.
“The monies constituting proceeds of corruption and economic crime were received by and for the benefit of Isika, who has been unjustly enriched by the receipt of the same at the expense,” the commission says.
The EACC has sought orders freezing the two accounts for six months as it conducts the probe.
“We are apprehensive that the respondent in light of the ongoing investigations and pendency of the application to discharge orders obtained in another application may in the intervening period, withdraw or transfer the funds before the commission has completed its probe. We urge this court to issue orders stopping the transfer,” say the court documents.
Ethics and Anti-Corruption Commission (EACC) now claims Migori Governor Okoth Obado looted Sh2.6 billion from the county government coffers during his first term in office.
The details emerged yesterday before the Anti-Corruption Court when the Commission through its investigator Robert Ronoh, who was testifying in the graft case facing the governor, his four children and 11 associates presented its case.
During his testimony, the officer said the Commission in 2017 received a complaint from an unnamed informant over misappropriation of funds amounting to Sh2.6 billion paid to 23 companies. However, the Director of Public Prosecutions (DPP) has charged the county boss with embezzlement of Sh73.4 million.
“We received information from the intelligence department of the EACC that there was misappropriation of public money at Migori county government where by companies that are associated with Obado family members were awarded tenders to the tune of Sh2.6 billion between the financial year 2013-2014 to 2016-2017,” Ronoh said.
Trial magistrate Lawrence Mugambi heard that following the huge amount of money involved, the complaint was forwarded to the commission intelligence for further investigation and action.
The investigating officer claimed the 23 companies of interest were registered a few months after the 2013 General Election when Obado was elected as governor.
Ronoh said the companies are linked to family, friends and close associates of the governor. The officer told the court that the governor and his proxies benefitted from Sh2.6 million from 23 trading companies which were awarded various tenders by the county government of Migori.
Being led in his evidence-in-chief by State Counsel Eva Kanyuira, Ronoh informed the court that seven of the companies are associated with businessman Jared Peter Kwaga, an associate of governor Obado.
Safety
He took the court through a payment schedule listing the companies in questions and amounts each received from the county government which was generated from the Integrated Financial Management System( IMFS) during initial investigations in the matter.
The court heard that among the 23 firms that received the billions of shillings included Atinus Services whch is associated with the seventh accused person Kagwa which received Sh122,819,987 for the period between December 17, 2014 and May 15, 2017.
Ronoh told the court that their efforts to gather documentary evidence in the graft case were frustrated by the County Secretary Christopher Rusana, who delayed in supplying the request for the documentary evidence. He said the investigations narrowed down on several companies to proceed with speed and focus on specific companies that were related to Kwaga which were owned by him, his boss, brothers, mother, and sister in law. However, the officer was stood down after the defence team objected to have him produce in court some documents on how the firms were incorporated.
Defence lawyers led by Kioko Kilukumi and George Kithi opposed to Ronoh documents saying that the they do not have the same. This prompted the magistrate to postpone the case to Tuesday next week and order the defence lawyers to file a formal application on the issue of documents.
The anti graft body has stopped former KRA officer from selling contested assets which are registered in his possession.
This is after high court judge Kamau Kinywa granted orders sought by EACC.
The orders have in effect stopped Jeremiah Kamau from selling 19 parcels of land.
Kamau was also directed to deposit his log book with the EACC within seven days.
The orders will remain in force for six months to allow EACC complete investigations.
EACC filed the case upon gathering sufficient information which supports claims the properties acquired by Kamau could be proceeds of crime.
EACC moved to court saying he might dispose the assets before investigations are completed, and a suit intending to forfeit the property to the state, is filed.
“The applicant’s preliminary investigations have found a huge disproportion between the value of the 1st respondent’s assets and his known legitimate source of income and reasonably suspects that the 1st respondent has engaged in corruption and economic crime as a result of which he has unexplained assets totaling to approximately Sh192 million,” EACC said in the application.
Court documents showed that Kamau was employed at KRA as a graduate trainee on January 28, 2005. He was promoted to a supervisor domestic taxes department, where he worked until he resigned in March this year.
EACC sleuths raided his home after obtaining a court order and recovered more than Sh1 million in Kenya shillings, Chinese currency and Dirham (UAE).
EACC argues that there are early indications that Kinyua’s cumulative wealth is consistent with allegations that they were engaged in suspicious conduct constituting corruption or economic crime therefore there is an agent need to preserve the properties.
His net salary between 2012 and 2021 was Sh11.6 million according to Ethics and Anti-Corruption Commission
But in just seven years, he acquired the 19 parcels of land scattered in Ruiru, Kiambu County, Laikipia and one parcel in Nairobi.
The parcels have been registered in his name, that of his spouse and a company that belongs to them. He also acquired a motor vehicle in one of the companies.
The anti-graft agency moved to court arguing that he might dispose of the properties or transfer them unless stopped by the court. EACC it is planning to file a petition to recover the properties.
