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EACC seeks to recover Sh100b lost to fraudsters

Tuesday, May 10th, 2022 06:56 | By
Ethics and Anti-Corruption Commission CEO Twalib Mbarak. PHOTO/file
Ethics and Anti-Corruption Commission CEO Twalib Mbarak. PHOTO/file

Hundreds of officials in both levels of government and shadowy traders are on the radar of Ethics and Anti-Corruption (EACC) over corrupt dealings running close to Sh100 billion.

The figure is a fraction of what Kenyans may have lost since the current status report does not capture past cases being handled by the EACC, Director of Criminal Investigations (DCI) and Assets Recovery Agency (ARA).

The amount is double the Sh50 billion that Treasury Cabinet Secretary Ukur Yatani is seeking to raise through the Finance Bill 2022 to supplement Sh 3.33 trillion Budget for the 2022/23 financial year.

It can amount can also construct at least 200 level five hospitals at a cost of Sh500 million each.

Covid procurement

Ongoing investigations entail 529 cases covering the 2020/2021 financial year. They include an inquiry into allegations of procurement irregularities and bribery in the award of a Sh10 billion tender for the supply of agricultural equipment to Contractors, a company registered in Poland by the Ministry of Agriculture, Livestock and Fisheries.

EACC also investigated another 104 cases and forwarded them to the Director of Public Prosecutions (DPP) Noordin Haji for review and recommendations relating to Sh16 billion fraud.

They include irregular procurement and fraudulent payments of Covid-19 emergency commodities by the Kenya Medical Supplies Authority (Kemsa) where Sh7.8 billion is suspected to have been lost.

The commission is also investigating allegations that the Treasury committed the government to sign a recapitalization and restructuring agreement in regard to Telkom Kenya at a cost of Sh2.4 billion without adequate budgetary provision.

According to EACC, by the close of 2021, there were 332 active corruption cases relating to the possible theft of Sh16.3 billion.

It also recovered public assets worth Sh6.25 billion.

EACC also filed various suits in court to pursue illegally acquired wealth relating to Sh2.3 billion assets.

“The commission pursuant to its law enforcement mandate finalised and forwarded 104 investigation files on corruption and economic crimes to the Director of Public Prosecutions for review. The Commission further undertook and finalized 83 investigations with various recommendations. In the same period, illegally acquired and unexplained assets with an estimated value of Sh5 billion were traced, while assets with an approximated value of Sh6.2 billion were recovered,” said CEO Twalib Mbarak.

He added that during the period, EACC saved Kenyans from losing Sh6 billion through a proactive approach.

Among files that are awaiting the DDP’s response include one where a Kenya Rural Roads Authority official has been unable to explain how he amassed Sh2.4 billion.

Another file covers the irregular procurement of an ultra-modern fish hub at Liwatoni Fisheries Complex in Mombasa at a cost of Sh2 billion by the Ministry of Agriculture and alleged gross misappropriation of Sh1.2 billion by Migori Governor Okoth Obado through proxies and employees.

Water supply

Other cases under investigation cover the suspected irregular variation of a Sh4.5 billion contract for the supply of medical equipment in a contract awarded to Philips Medical Systems Nederland BV in 2014 by the Ministry of Health and the fraudulent acquisition of public property worth  Sh4 billion at the Naivasha Municipality reserved for Kenya Agricultural and Livestock Research Organisation.

Elgeyo Marakwet County government is under investigation over the suspected embezzlement of Sh2 billion meant for Sabor-Iten/Tambach Water Supply Project.

Officials in Nairobi county are facing investigations over allegations that during 2017/2018, they presided over irregular procurement of a tender for provision of staff medical cover awarded to AAR Insurance Kenya at a cost of Sh1.7 billion.

The officials are also facing investigations over allegations of procurement irregularities in a Sh1 billion tender for construction of Dandora Stadium.

The Kwale county government is on the spot over irregular acquisition of public land in Kaya Tiwi Forest at a cost Sh1.5 billion, while Trans Nzoia is under active investigations over allegations of procurement irregularities and exaggerated cost in the tender for the extension of Trans Nzoia County Teaching and Referral Hospital at a cost of Sh1.4 billion.

The EACC is further investigating procurement irregularities in a Sh800 million tender for construction of Kitale Business Complex in 2018/2019 financial year.

Kenya Ports Authority is facing two investigations relating to irregular award of a Sh600 million tender for excavation and concrete works and awarding of a tender for biennial maintenance of roads.

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