Kenya Insights

Tag: Narcotics

  • Court halts Joho brothers plot to irregularly bag KPA tender

    Court halts Joho brothers plot to irregularly bag KPA tender

    Justice Reuben Nyakundi of the High Court has stopped Kenya Ports Authority from irregularly awarding a licence to Portside Freight Terminal Limited until a case filed against activist Okiyah Omtatah against the firm is heard and concluded.

    Omtatah accused KPA board of directors of going beyond the powers bestowed on them when they approved the licence to Portside Freight Terminal Ltd, a firm that belongs to Mombasa governor Hassan Joho and his brothers. Portside had won a multi-billion shillings tender to develop a second grain bulk handling facility at the port of Mombasa.

    Documents filed in court by Omtatah show that KPA wrote to the Treasury cabinet secretary Ukur Yatani on March 11 2021 asking for permission and approval to use single sourcing for the second grain handling tender and the request was approved by the board on June 28 2021.

    The contract wasthen awarded to Portside Freight Terminals Limited but six qualified  bidders including Mombasa Grain Terminals Limited, Kapa Oil Refinery, Kilindini Terminals Limited,  Africa Port & Terminals Ltd, Multiship International and Kipevu Inland Container EPZ were locked out after their proposals ignored.

    Activist Okiya Omtatah [p/courtesy]
    Omtatah convinced the court that single sourcing was exclusively being employed in this case to favor Portside Freight Terminal Ltd which feared competition from competent bidders. The activist also argued that the State Agency’s questionable move contravened the law and breached provisions of the Public Procurement and Asset Disposals Act.

    The board’s move also went against KPA’s Master Plan which proposed the second grain handling facility to be developed at either Dongo Kundu area or Lamu port but not Mombasa port where Joho brothers are are the shot callers.

    The ruling on Portside licence was celebrated by tycoon Mohammed Jaffer, Joho’s business rival who owns the only existing private grain handling facility ( Grain Bulk Handlers Limited) at the port of Mombasa and is poised to continue enjoying monopoly.

    The case whose hearing is set for August 27 has already elicited mixed reactions after another company associated with the Joho family took over a lucrative Nairobi SGR cargo terminal in Nairobi through an exclusive deal which raised eyebrows and attracted the attention of investigative agencies.

     

  • How Kenya became a money laundering haven

    How Kenya became a money laundering haven

    Kenya is now ranked among countries with rampant money laundering and financial crimes in the world after a report tabled before the US Congress exposed the country’s vulnerability through the increased use  of mobile money transfer platforms, the hawala system of banking and Trade Based Money Laundering.

    The report is part of the annual International Narcotics Control Strategy tabled before the US Congress to monitor the countries most affected by the vice and initiate measures to curb illicit financial transactions that aide criminal and terror activities.

    Kenya is now ranked among top money laundering countries in the world with diaspora remittances totaling up to Sh178 billion between January and August 2020 including proceeds of narcotics trade.

    The report also showed that dirty money has continued to circulate in the world despite the negative effects COVID-19 has had on economies across the world with many ravaged, shut or seriously slowed.

    “Criminals not only continued to perpetrate traditional financial crimes, but devised new ways to exploit the pandemic through counterfeiting essential goods and telephone and email scams promoting health or medical products,” the report read in part.

    Kenya is listed among other notorious African countries including Nigeria, Algeria, Ghana, Morocco, Mozambique, Tanzania, Liberia and Benin. The list also has the United States, UK, Colombia, Cyprus, Cuba, Italy, Mexico, Turkey, United Arab Emirates, Vietnam, India and Cayman Islands.

    The continuous flow of illicit money is majorly aided by corruption in many parts of the world, lack of political will, ineffective institutions and inefficient anti-money laundering laws.

    Kenya remains exposed to money laundering and terror financing in the East African region since it became a pioneer in mobile money transfer that has been used abused to finance terror activities. Weaker laws also maker it possible to infiltrate formal and informal channels through cybercrime, corruption, wildlife trafficking and smuggling of illicit drugs, counterfeits and illegal timber trade.

    The proximity of the country with war torn Somalia is also attracting laundering of piracy-related proceeds with a thriving miraa and charcoal trade that is unregulated. The Central Bank of Kenya has also failed in ensuring that all financial transactions above one million are flagged.

     

  • CS Matiang’i Reshuffles Top Police Bosses As War On Narcotics In Coast Region Surges

    CS Matiang’i Reshuffles Top Police Bosses As War On Narcotics In Coast Region Surges

    The Intensified war on Narcotics and other hard drugs in Kenya’s coastal region has been taken a notch higher as the Interior Cabinet Secretary Fred Matiang’i has ordered and led a reshuffle of top security bosses in the region.

    Those reshuffled are Coast Regional Police Commander Marcus Ocholla, County Police Commander Johnston Ipara and County Commissioner Evans Achoki.

    Mr. Ocholla will be replaced by the current Western Region Police Boss Rashid Yakub from the Administration Police (AP) unit which has since been merged with the Kenya Police.

    Ocholla has tenure has been cut short after serving as the coast region commander for only 8 months. He was appointed in mid-January this year when he was serving in the Eastern region.

    Mr. Ipara, who last week was leading a search at wanted drug trafficking suspect Ali Punjani’s palatial residence, has been moved to Uasin Gishu where he will take over from Mr. Augustine Nthumbi.

    Mr. Ipara was the only Police Boss who was not affected by the January reshuffle that saw many top Police officials moved and reposted. Ipara has served for three years as the Mombasa county police commander.

    Meanwhile, Mr Achoki who has also served as the Mombasa county security committee chairman for close to four years has also been moved. He will now be in Marsabit County.

    A source speaking to the media has stated that the reshuffle led by CS Matiang’i comes amid failure by the senior security officials to deal with the increased Narcotics and other hard drug menaces.

    “Last week’s raids have been seen as some hullabaloo because not a single big person was taken to court and charged over the drugs-related case,” a source told media 

    The reshuffle might be a plot twist from the government to avoid direct blame and public cussing after the police who, over last week conducted a crackdown and ransacked Punjani’s house and also that of Bofu Ward MCA Ahmed Salama, and left without any concrete  evidence that has since seen the unconditional release of Mr. Salama, three foreigners and Ali Punjani’s wife Karka Sushmija.

    Another source speaking to the media stated that  Ipara was moved because he took journalists to record an active Police raid and led a shoddy operation at Ali Punjani’s house.

    “He was really attacked over that move since it was only seen as a public relations exercise meant to put across Punjani as a good man,” said the source.

    During his 5 days tour in the Coast region CS Matiang’i said the drug trade has been a thorny issue in the region stating that that the government would move a step further, even if it is looking among those in the security detail.

    Dr Matiang’i visited the coast five days after a terror gang attack in Bamburi which he said was influenced by drugs trafficking. The CS said drugs were responsible for the increase of killer gangs terrorising the residents. At least 13 people were injured during the Bamburi attack.