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It was only a matter of when and not if, Siaya Deputy Governor William Oduol has fallen out with his boss James Orengo just six months after the pair were sworn into office.
The boisterous DG is said to have not won the trust of his boss who according to those in the know is uncomfortable with his junior for concentrating on his 2027 bid where it’s expected that Oduol who has previously vied for the governorship post, would attempt to outdo Orengo.
Even as the ODM heartthrob has been traversing the country with his party leader consolidating the ground for Monday 20th, back at his home, the governor is facing “mass action” threats from a section of local leaders who accuse him of halting some projects started by his predecessor and having a strained relationship with his deputy William Oduol.
Among the leaders who have given Mr Orengo a three-week ultimatum to address the two concerns are local ODM officials including the party’s Alego Usonga chairman John Orwenjo and area Maendeleo ya Wanawake chair Patricia Apoli.
Ahead of the August 9, 2022 elections, ODM settled on Mr Oduol as Mr Orengo’s running mate owing to the fierce competition from former Rarieda MP Nicholas Gumbo. He had initially opted to battle for the Alego Usonga parliamentary seat against the current MP Samuel Atandi.
Mr Orengo and Mr Oduol have offices in different buildings within the same compound, with the deputy county boss in the old Siaya municipal building and the governor in the new office complex.
It’s alleged that in a bid to help him handle the rising tension in the county, Mr Orengo has reached out to Mr Odinga to hold an anti-Ruto rally in Siaya. According to reports, the staff also revealed that county treasury had been ordered by the governor to release Ksh 4.8 million to facilitate the rally whose aim was to fight supremacy wars in Siaya.
Critics claim that some vocal MPs had a budget from the county finances of Ksh 500,000 each while seasoned MCAs were getting Ksh 200,000 each, others Ksh 50,000 each with first term county reps getting as low as Ksh 20,000 each or nothing to help in anti-Oduol warfare.
Some MCAs were overheard protesting that Orengo has discriminated against them through unfair distribution of the loot.
“Orengo’s fear is that Oduol is politically aggressive and could end his career but Oduol is even not keen on running in 2027. It however, beats logic why Orengo would go to an extent of using Chief Finance Officer Jack Odinga to withdraw the huge sums of money to fight Oduol’s spirits yet he has not pronounced himself on 2027.”
An officer at the Finance department said Orengo recently made changes in the docket in a bid to make it easy to withdraw funds despite an advisory of the Finance CCE.
“The CFO is the one calling shots. The CEC has been relegated to the periphery. Things are thick in Siaya,” the official said.
Another female staff at the department said the changes have also been a contributing factor in the feud between Orengo and Oduol.
While reacting to speculations that he has resigned amidst reports of the fallout with the governor, Oduol rejected claims.
“This claim of resignation is fake, obviously desperation is kicking in, I am the deputy governor for the next five years. Wazoe (let them get used to it),” he said.
Oduol said things have gotten worse in Siaya and he was yet to open the lid on the goings-on.
“When I finally speak, the people of Siaya county will be shocked. This administration will be worse than Rasanga’s and I won’t allow it,” he said.
Proponents of Orengo are also accusing Oduol of being used by Ruto to fight the governor. “I will not allow plunder and misappropriation of resources. If this makes me Ruto from within, so be it,” Oduol said.
Oduol also accused his boss of employing a hands-off management style.
“You can’t run a county when you are hands-off and leave questionable characters to steal unabated. I will smoke them out very soon. This is our county and my county,” he said.
Fighting for power between governors and their deputies has been common in the country. Starting in the county, Mr Ranguma and his deputy Dr Ruth Odinga would not see eye to eye.
In Kiambu County, former Governor Ferdinand Waititu and his deputy James Nyoro could not work together due to the bad blood between them. In the end, Mr Waititu was ousted and Dr Nyoro took over.
After staying in the colds and corridors of justice for long, Evans Kidero is set to join the government as the CAS for the Ministry of Industry, Trade & Investment post that he won after breaking ranks with ODM leader Raila Odinga and it also came at a time when he lost the election petition challenging the election of Homa Bay governor Gladys Wanga.
Like documented, the incoming CAS has had a dark path in his past including tainted stay at collapsed Mumias Sugar and previously Nairobi County where he served one term as the city’s governor. At the end of his tenure, he left a trail of graft cases that has seen him spend a better part of his recent years battling corruption scandals.
The former governor and ten others have since been accused of conspiring to commit fraud which led to the loss of Sh213,327,300 at the county government between January 16, 2014, and January 25, 2016 for services not rendered.
Peposi Freight Kenya Limited.
One of the most puzzling cases is that of Peposi Freight Kenya Limited, a company that won garbage collection tender with the county before it was registered.
According to a probe report presented to the then Nairobi Governor Evans Kidero and the then Nairobi County Secretary Lillian Ndegwa, the firm was neither contracted for such works and the documents used to register and process payments were all forged.
The firm was paid Ksh 7.6 million only four days after it was incorporated as a Limited Liability Company.
The firm opened a bank account on December 16th, 2014 and the deposit made four days later at its City Hall Branch. It was alleged that the firm won the tender with the county before it was registered.
The probe report shows that the account number in question, 01148230311300, was opened by two individuals who indicated their names as Mohammed Adan Ibrahim (ID number 1107823) and Mohammed Bashir Ibrahim (ID number 2302058) both of Post office Box number 21140-00100 Nairobi allegedly using forged certificate of registration disguised as from registrar of companies to open the bank account four days before the payment was done.
Detectives say that the firm was registered on December 16, 2014.
They then used fake certificate CPR2014/169610 to open the account on December 20, on a Saturday when the payment was done.
Ordinarily, Saturday is not an official working day but it remains unclear how the payment was transacted.
The same day the account was opened, Sh5,000 was deposited into the account by a customer only identified as Mohammed.
Later in the day, a cheque deposit (cheque number 134) of Sh7,612, 540 was made.
And on December 30, 2014, after the bank raised questions, the cheque was recalled.
Bashir Ibrahim and Adan Ibrahim were charged with four counts of conspiracy to defraud, forgery, altering of documents and obtaining money totaling to Sh7.6million by false pretext for garbage collection.
Even during Sonko’s tenure, the garbage collection scandal persisted. Mike Sonko allegedly pocketed Sh20 million from a remunerative garbage collection contract involving Nairobi County government.
According to EACC, some of the firms that won the Sh357 million tender wired more than Sh20 million to Sonko’s personal bank accounts in what is now believed to be kickbacks.
EACC is probing claims of corruption in the award of the tenders for 2017-18 and 2018-19. At the centre of the alleged bribery claim is one Anthony Otieno Ombok — a director of Yiro Enterprises, one of the firms that received the controversial tender. Ombok alias Jamal is also said to be a director of another firm known as ROG Security Ltd.
According to EACC investigations, after receipt of payment from the Nairobi County Government, some of the firms would wire part of the cash to bank accounts associated with Ombok. He would then send the money to Sonko’s bank accounts. Detectives have established the complex money trail, almost similar to that which was allegedly used by Kiambu Governor Ferdinand Waititu to get cash from the county.
Disgruntled contractors mostly drawn from the western region are now petitioning the Ethics and Anti -Corruption Commission (EACC) to speed up investigations into what they term as massive corruption in the tendering process involving a senior Kenya Rural Roads Authority (Kerra) official.
In their prayers to the EACC’s western region boss Abraham Kemboi, the contractors want Kerra Nyanza regional boss Kenneth Ochieng to be investigated over alleged irregularities in tendering process in which they accuse him of open bias in issuance.
There are allegations that Mr. Ochieng has perfected the art of doing some lucrative tenders through proxies involving friends and relatives.
Earlier on the year, an anonymous tip-off to the press claimed that Ochieng who was amongst parastatal heads allied to Azimio, pumped millions into the unsuccessful campaign. It is suspected the millions pumped into the course was proceeds from kickbacks from contractors.
The Nyanza’s boss Ochieng is being accused of unfairness in awarding tenders and is alleged to be notorious for locking out qualified contractors for cowboys contractors who gives the most in kickbacks.
The disgruntled contractors narrated how some politicians were dubiously awarded tenders as protection fee for the officers who are literally in a looting spree.
The disgruntled contractors are now calling upon the new EACC boss to monitor call logs between Ochieng and some political leaders from the region with a view of establishing the truth behind suspicions that he dubiously issued tenders to companies linked to the said political leaders.
Kemboi according to his previous assignments, is said to be thorough with his investigations and his arrival has given a bit of hopes to the contractors who expects him to reign in on corrupt officials.
Kemboi who ails from president Ruto’s backyard is perceived to be on a strategic mission to to investigate claims that government officials looted taxpayers money and directed towards the Azimio La Umoja campaigns during the last general elections.
It is imperative to note that Ochieng was mentioned in some quarters as among government officials countrywide who donated cash to the Azimio La Umoja campaigns in the last general elections.
When he arrived in Kisumu, Kemboi declared senior officers working in government parastatals who mysteriously became overnight millionaires are among those targeted for investigations.
Kemboi said that also being investigated are country executive members, chief officers and county directors among others.
He noted that demand for lifestyle audit is supported by section 55 of the anti-corruption and economic crimes Act which demands that all state and public officers must at all times be able to account for their wealth or lifestyle.
Western
Flames are up in the western part as well where in Bungoma the procurement officer Evans Barasa and his accountant Nelson Sino have reportedly been earmarked for arrest given their role in the irregular operations in the region that has been seen as a looting operation.
Since the rumors of arrests hit the corridors, it’s said they’ve been in a rush to transfer their assets and emptying their bank accounts with the knowledge that they risk having their assets and accounts frozen once they’re charged. The transactions are being monitored according to reports.
Barasa has accused disgruntled contractors who’re accusing of abuse of office and impunity of witch-hunting despite facts on the ground working against him.
Among the complaints is that o22pc meant for constituency roads, 10pc of tenders are supposed to be awarded to youth and people living with disability however, the procurement officer has gone against the procurement rules to have his companies awarded road tenders meant for special groups.
The companies in question are AfricaReage holdings Ltd, Kadenge Contractors, Leta Kenya and Timaka Ltd whose directors are close allies of Barasa, Kerra procurement officer.
Barasa is also accused of demanding hefty kickbacks from bidders so that their companies would be favoured during the tendering process.
Barasa is said to be working hand in hand with the region’s accountant Sino in awarding tenders dubiously. Locals are now requesting for a lifestyle audit on the notorious officials.
Claims of nepotism have also rocked the western region where the director Jared Omondi, his deputy K’Otieno are both Luos. Sino the accountant and his assistant are both Luos as well and so is the ICT director Mr Jasper.
Elsewhere, pressure is mounting on Kenya Rural Roads Development Young Director Wilfred Oginga who has been accused him of mincing millions of shillings at the parastatal. The pressure is calling for the involvement of EACC and Assets Recovery Agency to investigate Wilfred Oginga who has been in secret operation looting public funds and sponsoring politicians for tender deals. His dirty deals were exposed.
At least 31 private universities are staring at a bleak future after Members of Parliament (MPs) banned the placement of government-sponsored students to the institutions.
This is after the parliament approved a report of the Budget and Appropriation Committee on the 2023-24 Budget Policy Statement, which spells out priority expenditures for the government, and directed the Kenya Universities and College Placement Services (KUCCPS) to stop placing government sponsored students to private universities.
The statement shows the government has terminated exchequer funding for private universities beginning the next Financial Year. KUCCPS is the only institution mandated by law to place Form Four graduates in universities and colleges.
One of the biggest casualties of the move is Mount Kenya University that has been the biggest beneficiary of the plan.
Of the 30 universities among the top beneficiaries include Mount Kenya that gets Sh552.3 million for 12,479 students, Kabarak, Sh357.9 million for 7,715 students, Catholic University of East Africa Sh196.9 million for 4,685 students, Kenya College of Accountancy gets Sh223.9 billion for 5,142 students, university of Eastern African Baraton Sh183 billion for 4222 students and Zetech University Sh115.4 million for 2,836 students.
According to documents from Universities Fund in the 2017/18 Financial Year, private universities received Sh1.6 billion as grants for 18,587 students, in 2018/19FY they received Sh1.98 billion for 29,729 students, in 2019/20 FY they received Sh2.5 billion for 43,676 students while in the 2020/21 Financial Year they received Sh2.7 billion.
In the last four years, private campuses have received grants worth Sh8.7 billion from the government at the expense of public universities.
MKU and TSC Deal
MKU is also a major beneficiary of the previous regime where in 2021, it cut a deal with the Teachers Service Commission (TSC) to offer professional courses for teachers.
This was after the teacher’s employer enforced that the refresher courses will be a requirement for teachers to enable them to renew their practising certificate every five years.
Mount Kenya University Vice Chancellor Prof. Deogratius Jaganyi holding a copy of the contract signed with Teachers Service Commission.
In this state-private sector deal, the institution stood to earn billions. It’s unclear how the process of choosing the suitable institutions were done and of it was an open process. The institution is associated with Simon Gicharu who was recently implicated in a botched land deal.
A Malindi Court has restrained a Man from evicting a Businesswoman from their matrimonial home.
Malindi Senior Principal Magistrate James Ongondo issued an order on February 18,2023 stopping Wesche Simon Enna from wasting, damaging or interfering with that matrimonial property located Habour Cottage pending the hearing and determination of the matter in court.
“A temporary injunction be and is hereby issued restraining Wesche, officials, employees or whomsoever is acting on his behalf from wasting, damaging, alienating or interfering with altering the beneficial interest over shares and assets in Habour Key Cottage Management Limited pending the hearing and determination of the suit in court, “added Ongondo.
In her application through lawyer John Swaka, Vivien Nasimiyu Wamalwa claims that her husband whom they jointly bought the property has evicted her from the house.
She claims that they got married in June 2020 in Odennse Kommune Denmark.
The union between the parties was however not blessed with any children.
Swaka in court documents says that the woman had a daughter and the Simon a son from their previous relationships.
In May 2021, She secured employment with Telehealth Company in Kenya and they relocated to Kenya. Simon retained his employment with his Danish employer working remotely.
The two resided in Kilimani Nairobi together with the woman’s daughter in an apartment which the Applicant was renting.
The two while on holiday in Malindi came across a property known as Harbour Cottage No 30 registered as CR No. 35919 and known as Land Portion No. 9699 which piqued their interest.
They purchased it on Sh 7,000,000 via a sale agreement drawn by the Advocate firm of Muli & Ole Kina.
They equally jointly purchased shares in Harbour Key Cottage Management Limited from Nesti Maria Raffaella
Upon purchase they moved into the property together
Swaka says that the man has been physically and verbally abusive to the woman on several occasions both in Denmark and within the country leaving her with severe injuries and bruises on her body.
The attacks of violence and abuse forced the Applicant to seek psychological assistance from a therapist following a marital spat which culminated in the Respondent attempting to kill the Applicant through strangulation
They separated for a brief period within the month November 2022 and the Applicant moved back into their home in Nairobi.
The woman having had an opportunity to begin healing both physically from the bruises and scars and emotionally, sometimes in the month of February 2023 informed the Respondent that she would be moving back into their home in Malindi
To the woman’s surprise upon arrival on the 7the February 2023 she was met with boxes and bags of her personal items at the gate by one Kenneth Maina who had been hired by the Respondent to bar the Applicant’s ingress and access to the premises.
Lawyer Swaka says that the actions by the Respondent have excluded the Applicant from use and access to her matrimonial home despite having equally contributed to the purchase of the property
The woman is apprehensive that unless restrained by the court the man shall remain a persistent nuisance and a threat to her safety and well-being and her proprietary interests.
Swaka says that the conduct by the man threatens the woman’s quality of life and her proprietary interests over the land as enshrined under the provisions of Article 40 of the Constitution.
“The actions by the Respondent have destabilized and wreaked havoc to the Applicant’s life through the constant threat of assault, physical harm and verbal insults and abuses”, adds Swaka
He says that the actions by the Respondents have been a cause of grave mental, emotional trauma.
Danish Spouse
On his end, the Denmark citizen pleaded for help from the government stating that his Kenyan ex-wife had taken over his Ksh12 million house in Malindi and moved in with another man.
According to the 48-year-old, he purchased the beach cottage while on vacation with his then-wife in 2021 for Ksh10.5 million and spent a further Ksh2 million to renovate and furnish the house.
He narrated that he met the Kenyan in Denmark in 2020 while she was married to another man but he decided to marry her weeks after she divorced her other Danish spouse.
Moreover, he stated that he made the decision to move to Nairobi to stay with his Kenyan wife because it was difficult for her to obtain a residence permit in Denmark.
“I have been funding our entire relationship including the entire move back to Kenya. Everything from holidays to our daily necessities has come out of my pocket.
“I have even funded several of her trips to Kenya as well as holidays and birthday presents for her daughter while we lived together in Denmark,” the man narrated.
The danish man explained that he was able to buy the Malindi Beach Cottage from his investments in Denmark noting that it was his first investment in Kenya.
Moreover, he added that his ex-wife had tricked him into including her name on the sale agreement claiming that he was not allowed to own property in Kenya as a foreigner.
“I am living in exile in Denmark away from the property I own in Kenya and the life I have worked hard for.
“She has used her connections to get my residence permit revoked. Her plan is to keep me away and enjoy her sweet life at my expense,” the man added.
Further narrating his plight, the Danish man explained that he left his cottage in February 2023, to accompany his ailing father but when his ex-wife learnt of his departure, she travelled to Malindi, broke into the house and moved in with another man.
“She broke into the cottage the following day after I left without warning and moved in with another man. The man I employed to look after my residence was brutally attacked and chased away.
“She is killing my dream to invest in Kenya and live a beautiful life,” the man lamented
Danish national thrown out of his Malindi beach house by Kenyan wife cries for help pic.twitter.com/U5TpEGZnxU
Kenya Insights has obtained a memoranda and petitions dated 7th March 2023 with first hand primary information, the leadership of Ministry of Labour And Social Protection has failed to remedy the very sad situation which is ailing NITA addressed to Felix Kosgei Head of Public Service and Chief of Staff State House.
The letter highlights, the corrupt, highly conflicted, compromised and inefficient Director General indirectly involved in the theft of public resources, deliberate Violation of procurement laws and procedures, Insider trading with NITA by the Director General through fictitious companies owned by proxy employees and accredited trainers and massive theft through creative accounting under an entity called Home Care Management.
Persistent employee harassment, intimidation and open discrimination, employee stagnation and promotions lacking fair competition and merit.
The impunity by the Director General under the support of FKE & COTU representatives at the NITA Board who have treated the Authority as a private members club.
The memoranda describes Mr. Stephen Ogenga as a delinquent public official who has failed to maintain devotion to public duty. That on account of inefficiency, his engagement in subversive activities, violation of several provisions of the Constitution; be considered the need to suspend Mr. Stephen Ogenga to pave way for a serious investigations into the veracity and gravity employees’ claims against him.
Ø Public service at NITA has degenerated into a closed priesthood without any semblance of accountability.
Ø The hands of members at the Board from FKE &COTU are not clean.
Ø FKE &FKE representatives are responsible for the inefficiency, negligence, incompetence by the Director General, Stephen Ogenga.
Ø The FKE & COTU representation combined hassix members while the government has five members. The government is the minority.
Ø This has made the NITA become a private members club held hostage by members who come for meetings and never-ending retreats thathave no meaningful results or output to the authority.
Ø The Board has turned out and is likened to the proverbial ostrich; it has buried its head in the sand instead of taking an assertive position on the Director General’s inefficiency, incompetence and improper exercise of hisadministrative authority while in discharging of publicduty.
Ø FKE & COTU members of the NITA Board havesustained abuse of their numerical strength toimpose unpopular decisions on recruitments,administrative actions, procurement etc.
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Ø As a matter of URGENCY the composition of the NITA Board should be restructured to have and expanded membership that will help to reversethe perpetual in-breeding of outrageous andoutdated ideas fronted by the FKE & COTUmembers of the NITA Board.
Ø A huge chunk of critical stakeholders need to beconsidered for representation at the NITA Boardsuch as Kenya Association of Manufacturers,KNCCI, KNQA and Jua Kali when restructuring ofthe Board.
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Ø There is an unholy union between; the Director General, FKE & COTU representatives who sit at the NITA Board. They are the onesprotecting Mr. Stephen Ogenga from being called toquestion over his unbecoming conduct which hasprejudiced the interest and reputation of theAuthority.
Ø All issues raised to the Board against the Mr. Ogenga are traded as false complaints or vexatious allegations because he enjoys a lot ofprotection by the FKE & COTU members sitting atthe NITA Board.
Ø In spite of the effective and stringent laws inplace, NITA is run like private members club whilerampant cases cronyism, open discrimination andnepotism.
THEDIRECTORGENERAL–MR.STEPHEN OGENGA
Ø NITA is ailing because of Mr. Ogenga’s multiple lapses while in discharge of public duty attributed tohis negligence and impunity.
Ø As a public servant of doubtful integrity, Mr.Ogenga has become a dead wood because he doesnot discharge public duty as per the expectations of employees, critical stakeholders and the general public.
Ø Mr. Ogenga is an arrogant public servant, he isnot people friendly and by and large, he has losttouch with the ground realities. He practices untouchability knowing that NITA is a private members club controlled by FKE & FKE overvested and competing interests.
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Ø Due to Mr. Ogenga’s intimidation and harassmentleadership style. he has created fear psychosis tothe extent that senior staffs are afraid of taking bold decisions in the public interest especially those involving tender evaluations of big amounts ofmoney and important commercial decisions. It is hisway or the highway.
Ø Severally, we have written to the parent ministry toprotest that Mr. Ogenga conducts himself as if the rule of law does not apply to him. What follows ourcomplaints is invitation of senior members of the
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Ministry to attend NITA functions locally andinternationally as an enticement to suppress and do away with employee concerns.
Ø The former cabinet secretary Amb. Ukur Yattani was rewarded with a lucrative position to employ his relative as the Center Manager, NITA Mombasa and given other junior positions to go show on employee concerns escalated to the Ministry which included;
· Favoritism and nepotism
· Open discrimination
· Cruel, inhuman and degrading treatment ofemployees
· Wrongful dismissals premeditated
· Sexual harassment by two HR personnel whohave since existed the Authority
· Strangers taking up job opportunities declared asinternal job advertisements.
· Irregular and biased promotions offending faircompetition and merit
· Compulsory and forced job re-designations
· Arbitrary and perpetual harassment of employees
· Forced transfers
Ø One of the biggest problems faced by NITA is Mr. Ogenga’s antagonistic threats and blackmail of Internal Audit staff to scare them fromraising audit queries. Internal audit department issilenced and is now likened to a lame duck. Consequently, the lack of
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accountability for official misconduct has contributed to the widespread impunity by Mr.Ogenga.
Ø NITA employees have lost and confidence in theintegrity of Mr. Ogenga’s administrative andleadership style on official matters because of its conflict with acceptable standards expected of him by stakeholders.
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Ø Mr. Ogenga is a microphone parrot who talks big English and hullabaloos to suit the ears of his audience.
Ø NITA is ailing because of Mr. Ogenga’s peripheralapproach in addressing issues affecting theAuthority.
· No action on employees’ memorandum
· Several employees have stagnated in the same rank for years with a chosen few benefiting because of ethnic and sex-oriented favours.
· Employers are not reimbursed on time and an instant survey will reveal the frustrations experienced by such stakeholders.
· Several instances of injustice remain unattendedto because of impunity.
· It is frustration over frustration.
Ø Mr. Ogenga prioritize what he directly benefits from especially taking big DSA or Per diems accumulated to fund his local andforeign trotting. More recently he has been to theKingdom of Saudi Arabia, South Korea, Europe andsome parts of Africa including Benin without anymeaningful benefit to the Authority.
Ø He accumulated DSA for bribery and to enticeFKE & COTU members with no return on investment to NITA. It is simply wanton wastage of publicresources.
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Ø Mr. Ogenga committed himself during a presidential function that he was going to support on–site skilling and assessment as a wayof supporting the Affordable Housing Project.Internally, he has never initiated any discussions or called a meeting to discuss anything angling towards his commitment before the President of The Republic of Kenya.
Ø Mr. Ogenga ;
· Has conducted himself in a manner that is prejudicial to the interest and reputation of the
Authority.
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· Displays a conduct which is inconsistent or incompatible with the due or peaceful discharge of public duty to the Authority.
· Has made it unsafe for the Authority to retain himin service.
· Is grossly immoral that all reasonable men willagree that he cannot be trusted.
· Is habitually negligent in respect of the duties forwhich he is engaged.
· Is not meritorious and non- partisan in discharge ofpublic duty
BIDRIGGINGANDPROCUREMENTFRAUD
Ø Mr. Ogenga used his official position to influence the outcome of tender evaluations which he has vested interest by directing procurement officers through intimidation to compromise procurement laws and procedures.
Ø Nothing is done at procurement which is in accordance with government policies and regulations on procurement because Mr. Ogenga engages himself in the business of canvassing in the procurement functions and processes.
Ø Mr. Ogenga causes intentional inefficiencies anddelays when he is required to sign contracts andaward letters.
Ø Successful bidders are tactically compelled toappear before the him before their contracts andaward letters are signed.
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Ø Some successful bidders have complained insilence about Mr. Ogenga’s deliberate delays ofholding of procurement files in his office in a scheme orchestrated to facilitate structural bureaucracy and frustration to lure them to givenin to bribery and kickbacks.
Ø Corruption at NITA is an ongoing serious issue which has dampened the Authority’s growth and
lowered the quality of service delivery.
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Ø Employees are questioning Mr. Ogenga’s directives founded on harassment and intimidation to split the job roles of theProcurement Manager.
Ø Without any justification, some roles of the Procurement Manager were taken up by her immediate junior. Is it that the Procurement Manager is incompetent or a scheme designed by Mr. Ogenga to further his illegal scheme of divide and rule to cause confusion and paralysis in the procurement department? It is outrageous to have two procurement officers reporting to the Director General directly in asmall organization like NITA.
Ø Information available shows that procurement filesare deliberately retained by Mr. Ogenga in his office and very silently and with no written directive, he hasmade it mandatory for successful bidders to see himin person before their contracts and award lettersare signed.
Ø Bribery is a fact of life and necessary at NITA toget most procurement jobs done.
Ø EACC officers and sleuths from DCI are frequentvisitors to the office of the Director General following up on inquiries and investigations which turn out asmere public relations charades. Most of them leave the office smiling with brown envelopes.
THERIP-OFFTHROUGHHOMECAREMANAGEMENT
Ø Illegal insider trading is a serious breach offiduciary duty or other relationships of trust andconfidence.
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Ø It is unbelievable that Mr. Ogenga and a number of rogue employees have conspired and registered training entities which are used tosiphon millions of funds intended for NITA.
Ø Mr. Ogenga is unlawfully using his position jointly with the said rogue employees to derive financial benefit from NITA through fraud.
Ø Through the proxy companies, certificates with result slips for modules passed and proficiency certificates in Home care managementare issued illegally in the name of NITA.
Students pay fees directly to Mr. Ogenga’s proxies and factious receipts are presented to NITA in a conspiracy facilitated by one, James Omwoyo Nyangau, an accountant tasked withcreative accounting to conceal the massive theft.
Ø Home Care Management is a cash cow and another KEMSA like scandal requiring the immediate attention of DCI
Ø Mr. Ogenga is back stabbing junior officers by using renown activists within the Home care Management, especially some selected trainers andagents in the infighting over this rip-off.
Ø The real fraudster in this scam is Mr. Ogengahimself who has perfected the art of acting throughjunior employees to steal from the Authority.
Ø It is not rocket science to establish that the Mr. Ogenga is in bed with some accredited trainers and agents under Home CareManagement to steal from the Authority and todefeat its efforts to regulate this sector.
Fees are collected, students are examined andcertificates are issued, fictitious receipts arepresented to NITA for creative accounting andmillions ends up in the pockets of criminalemployees in a complex web of theft facilitated byan FKE & COTU protected Director General.
City lawyer Thomas Otieno Ngoe and businessman Nicolas Otieno Ndolo are currently being held by the police for for allegedly defrauding an American Sh100M contrary to section 393 of the penal code.
The complainant was introduced to Mr Ndolo as a business man dealing in gold business.
After the ntroductions, they agreed that the complainant would purchase 3000kg of gold at USD 41,000 Per kg totaling to USD 123,000,000.
According to court documents seen by Kenya Insights, Mr Ndolo provided Equity Bank Account NO.1510278992209 to the complaint account name Africorp Consultants Limited as the transaction account for the business.
The complainant was then later instructed his bank in U.S.A. to wire the sum Of USD 1.000.000 on 10th February 2023 by way of a swift bank transfer into the account.
According to the ODPP, Mr. Ndolo confirmed to have received the money and would then contact the complainant to witness the packaging of the gold in readiness for shipment to Dubai.
The complainant waited in vain for an appointment to witness the packaging which then prompted him to request for documentations in regard to the purchase of the said gold.
The complainant later realised that some of the documents such as the customs entry indicated on the declaration form dated 8th March 2023 was not genuine.
On sensing that the victim was aware of the scam, Ndolo started to avoid meeting the complainant and later started threatening him with deportation from Kenya.
This prompted the complainant to make a report at DCI Operations Support Unit which report was then booked at Capitol Hill Police Station vide O.B. NO.29/11/03/2023.
Upon investigations at Equity Bank where the money was wired, it was discovered that it is operated by Tom Ongoe the 2nd respondent herein and that the whole amount has been transferred to other accounts.
Tom Okundi.
He was swiftly trailed and arrested where firearm was recovered from the vehicle they were driving.
the 1st respondent herein on learning that he was being sought, surrendered himself at DCI Headquarters where he was subsequently arrested for interrogation to establish his involvement in supposedly gold business that there never was.
The prosecution urged the court to detain them for five days for them to complete their investigations to determine whether the firearm was licensed.
Their lawyers have jointly objected the prosecution’s request to detain them saying that the evidence is not sufficient.
DCI has stated that investigations into the matter are still ongoing, and they aim to recover the defrauded money.
The suspects are currently in custody as the probe continues.
The director of Elite Earth Movers limited has been charged with stealing over Sh71.5 million from the company.
Parminder Singh Manku appeared before Milimani Senior Principal Magistrate Robinson Ondiek and denied the charges.
Prosecution told the court that Manku committed the offence on diverse dates between 5th August and October 23rd in the year 2021 in Westland.
The charge sheet stated that being the director of Elite Earth Movers limited, Manku stole Sh71,500,000 belonging to the company, which came into his possession by the virtue of being a director.
Manku is also accused of forging Lalji Meghji Patel and Company Limited Board Resolution purporting to be a sole signatory to account number 0102486724000 and account name Lalji Meghji Patel and Company Limited held at Standard Chartered bank Westlands branch.
It is alleged that he committed the offence on the 10th of September 2020 at Lalji Meghji at the company’s head office along Mombasa Road, in Nairobi City County, with intent to defraud
The court further heard that on 7th October 2020 at Standard Chartered bank Westlands branch in Westlands Sub County within Nairobi City County, Manku uttered the company’s board resolutions, claiming that he was the sole signatory to the account.
Manku was released on a bond of Sh3million or alternative cash bail Sh1million.
The case will be mention 23rd of March and hearing is scheduled for 11th of May 2023.
The company behind the ChatGPT app that churns out essays, poems or computing code on command released Tuesday a long-awaited update of its artificial intelligence (AI) technology that it said would be safer and more accurate than its predecessor.
GPT-4 has been widely awaited ever since ChatGPT burst onto the scene in late November, wowing users with its capabilities that were based on an older version of OpenAI’s technology, known as a large language model.
“We’ve created GPT-4, the latest milestone in OpenAI’s effort in scaling up deep learning,” a company blog said, adding that the AI technology “exhibits human-level performance” on some professional and academic tasks.
The company said the model is “more creative and collaborative than ever before” and would “solve difficult problems with greater accuracy” than its earlier versions.
With its update, text responses from GPT-4 will be more accurate, and — in future — will come from both image and text inputs in a major leap forward for the technology, though this aspect has not yet been released.
For example, if a user sends a picture of the inside of a refrigerator, GPT-4 will not only correctly identify what is there, but also concoct what can be prepared with those ingredients.
OpenAI said it was working with a partner company, Be My Eyes, to prepare the next advance.
Much of the new model’s firepower is now available to the general public via ChatGPT Plus, OpenAI’s paid subscription plan and on a AI-powered version of Microsoft’s Bing search engine that is currently being tested.
OpenAI is backed by Microsoft, which earlier this year said it would finance the research company to the tune of billions of dollars.
The Windows-maker then swiftly integrated the tech into its Bing search engine, Edge browser and other products.
Microsoft’s aggressive adoption of ChatGPT has sparked a race with Google which announced its own versions of the AI technology, with Amazon, Baidu and Meta also wading in, eager to avoid being left behind.
– Less ‘hallucinations’ –
OpenAI said that the new version was far less likely to go off the rails than its earlier chatbot with widely reported interactions with ChatGPT or Bing’s chatbot in which users were presented with lies, insults, or other so-called “hallucinations.”
“We spent six months making GPT-4 safer and more aligned. GPT-4 is 82 percent less likely to respond to requests for disallowed content and 40 percent more likely to produce factual responses,” OpenAI said.
Founder Sam Altman admitted that despite the anticipation, GPT-4 “is still flawed, still limited, and it still seems more impressive on first use than it does after you spend more time with it.”
“The power of the algorithm will increase, but it’s not a second revolution,” said Robert Vesoul, CEO of Illuin Technology, a French AI start-up.
Vesoul questioned the safety measures taken by OpenAI, which has already been hit by criticism from billionaire Elon Musk that the company is overly curbing speech on its AI in order to avoid more embarrassing responses.
“I am not sure if I want an AI to block responses on unknown topics… Should an AI decide if I smoke or not?” Vesoul told AFP.
Other companies partnering in the rollout of GPT-4 include Morgan Stanley that will use the AI to help guide its bankers and their clients.
“You essentially have the knowledge of the most knowledgeable person in Wealth Management—instantly,” said Morgan Stanley Jeff McMillan in a statement.
Other partners include Khan Academy, the online tutoring giant and Stripe, a financial app that will use GPT-4 to fight fraud and for other uses.
DIB Bank Ltd has suffered a blow after the High Court rejected an application seeking to block the police from investigating a customer’s bank account.
Justice Justus Bwonwong’a dismissed the bank’s application stating that the purpose of conducting investigations secretly (without involving the concerned party), is to prevent suspects from escaping or destroying evidence.
The judge also said ex-parte applications protects innocent people from the public knowledge that they are under investigation.
“It is a universal rule that investigations in respect of allegations that offences have been committed are conducted in the absence and without the knowledge of the target or suspect. If disclosures were allowed during the investigation process, it will be prejudicial and destructive to the investigation process,” the judge said.
The judge said the lender cannot claim privilege to avoid being investigated for suspected commission of crimes.
The lender moved to court to challenge the move by a magistrate court, allowing the police to investigate a customer’s bank account.
Police constable Bonface Muli obtained a warrant to investigate the bank account over claims of conspiracy to defraud and forgery over a property charged by the bank.
The police made the application before the magistrate in September last year and were allowed to investigate the books of account but the bank faulted the move saying it would lead to compromise of its duty of confidentiality.
The judge dismissed the application saying the bank cannot claim confidentiality between it and its customers to evade disclosure of the information that is needed by the police in the course of their investigations.
“Additionally, the bank cannot claim any confidentiality once there is an order of the court to carry out the search in respect of the books of accounts of the bank,” the judge said.
The judge said fair trial rights under article 50 of the Constitution of an accused do not come into play during the investigation process and are only applicable when a suspect has been charged in court.
In a case before the legal education appeals tribunal, Mr Antony Waziri Kitsao is putting up a fight against Kenya School of Law(KSL) and Council of Legal Education having been denied admission to the advocates training program. This is despite having acquired a law degree from the Mount Kenya University.
The legal body argues that despite having been admitted into the program by the university, he didn’t meet the requirements for admission to KSL from which he needs the accreditation to practice law in Kenya.
This has left the student baffled by how MKU could’ve allowed him to spend a lot of money in his education if they knew he couldn’t be admitted to the required training advocates program.
Kitsao filed this appeal against the decisions of the Director of Kenya School of Law issued on 4th January 2023 and 10th January 2023 seeking an order compelling KSL to admit him to the Advocates Training Programme.
According to his appeal, Kitsao sat for his Kenya Certificate of Secondary Education Examination and attained a Mean Grade of B- (Minus).The Appellant also scored a B – (Minus) in English and a C + in Kiswahili. He thereafter pursued a degree in law from Mount Kenya University.
He states that having attained the above qualifications, he is eligible for admission into the Advocates Training Programme (the “ATP”). He also states that the denial of admission for the academic year 2023/2024 is an infringement of his right to education.
KSL.
In response, KSL states that upon the Appellant making his applications to the Advocates Training Programme, he did not meet the eligibility criteria as provided for under Section 16.
That Section 16 of the Kenya School of Law Act2012, as read with Paragraph 1 of the Second Schedule provides the requirement for admission to the Advocates Training Programme is a mean grade of C+ (plus) in KCSE with a grade B (plain) in English or Kiswahili languages which the Appellant did not have.
Further, KSL states that Kitsao is relying on academic progression to be admitted to Advocates Training Programme, yet the Kenya School of Law Act 2012 does not have a provision for academic progression.
An anti-corruption court has put former Nyandarua County Governor Daniel Waithaka Mwangi and five former top county officials on their defence after finding that the State has established a prima facie case against them in a Sh50 million case they are facing.
“After looking at the charges, evidence, submissions and exhibits on record, I find that the State has established a prima facie case against the accused. The accused therefore have a case to answer,” Senior Principle Magistrate Judith Wanjala ruled yesterday, sitting in Nyahururu.
Mr Waithaka Mwangi, five top officials of his administration and two contractors of Israeli origin were charged in court in 2018 following investigations by the Ethics and Anti-Corruption Commission (EACC). Their case has been ongoing ever since.
Former Nyandarua County Governor Daniel Waithaka Mwangi
The two contractors, Chen Yochanan Ofer and Albert Attias were directors at Tahal Consulting Engineers Limited and were allegedly used as conduits to facilitate the fraud. The five former county officials include Grace Wanjiru Gitonga, County Executive Committee Member for Water; Martin Igecha Kimani, chief officer for Water Energy and Natural Resources; John Ngigi Daniel, Sub-County Water officer; Jesse Wachira Mwangi, former principle finance officer and; Simon Irungu, former senior economist Mr Waithaka and the senior County Officials engaged M/S TAHAL Consulting Engineers Limited to develop a County Water Master Plan and to design the Ol Kalou Town Sewerage System without following the procurement laws and regulations. They used direct procurement method, without obtaining prior written consent from the Nyandarua County Tender Committee.
The said procurement had not been planned for in the 2013/2014 financial year. Investigations disclosed that the then County Secretary, CEC Finance, and Chief Officer Finance, had advised that the services be procured through Public Private Partnership. The Governor however ignored them and chose to engage Tahal Consulting Engineers Limited through single sourcing.
As a result, the County paid the consultant Sh23,895,513 as advance payment and final payment of KShs26,575,000. TAHAL Consulting Engineers Limited is an international company incorporated in Israel. As at the time of entering into the contract with the County Government of Nyandarua, the company did not have a local subsidiary. Investigations revealed that in as much as Chen Yochanan Ofer and Albert Attias had presented themselves as representatives of TAHAL Consulting Engineers Limited, they were disowned by the said firm.
A company by the same name was registered in Kenya in the year 2016. At the end of the consultancy, payments were wired via RTGS to a bank account in Tel Aviv, Israel.
Efforts by the EACC to pursue the money in Israel hit a brick wall since Kenya and Israel do not have Mutual Legal Assistance arrangements. Worse still, Israel has a Foreign Policy which prohibits handing over of its citizens to be tried in foreign jurisdictions.
In the contract documents, the Governor signed on behalf of Nyandarua County Government contrary to the existing laws. A governor does not have the authority to enter into any such contract. According to the prevailing legal framework, Chief Officers of the respective Departments, who are the Accounting Officers, are the only ones authorized to enter into contracts.
The contract the Governor signed provided that TAHAL Consulting Engineers Limited would source for funds from Israel to execute the water project in the entire Nyandarua County after completion of consultancy services. However, the consultant disappeared in thin air immediately after being paid Sh50.5 million. The project has never seen the light of day to date.
Mr Waithaka and his cohort were charged with various counts including willful failure to comply with the law relating to procurement contrary to Section 45 (2) (b) of Anti-Corruption and Economic Crimes Act (ACECA) 2003 and abuse of office contrary to Section 46 as read with section 48 (1) of ACECA, 2003.
The charges against Tahal Consulting Engineers Limited and its purported directors, Chen Yochanan Ofer and Albert Attias, were dropped because they could not be traced and their existence could not be established. The case will be mentioned on March 17 when parties will pick hearing dates.
Twenty four Congolese and international civil society organizations have written in an open letter to Secretary of State Antony Blinken and Secretary of the Treasury Janet Yellen, urging them not to provide sanctions relief to the international mining tycoon Dan Gertler. The organizations argue none of the grounds for providing sanctions relief have been met, and the US must resist urging from the government and presidency of the Democratic Republic of Congo to grant Gertler sanctions relief.
The Honorable Antony Blinken
Secretary of State
Washington, D.C. 20520
The Honorable Janet Yellen
Secretary of the Treasury
Washington, D.C. 20220
March 8, 2023
Re: Potential Sanctions Relief for Mr. Dan Gertler
Dear Mr. Secretary,
Dear Madam Secretary,
We, the undersigned members of Congolese and international civil society organizations, write to you once again to express our growing concern about potential sanctions relief for businessman Dan Gertler. We believe that the statutory grounds for lifting sanctions are not fulfilled and that doing so would harm US interests in fighting corruption, promoting prosperity in the Democratic Republic of Congo (DRC), and keeping sanctions tools like the Global Magnitsky program credible and effective.
The Department of the Treasury sanctioned Mr. Gertler and his companies for high-level corruption related to the DRC in December 2017. According to the Treasury’s press release, “the DRC reportedly lost over $1.36 billion” as a result of his “opaque and corrupt mining and oil deals.” (Mr. Gertler has consistently denied any wrongdoing.)
After persistent lobbying by Mr. Gertler’s attorneys, the previous administration granted him a last-minute license in January 2021, one so broad that it effectively annulled the sanctions. Many of the undersigned organizations requestedthat the incoming administration urgently reconsider the license. Under your leadership, the license was swiftly revoked in March 2021 and characterized as “inconsistent with America’s strong foreign policy interests in combating corruption around the world.”
Despite calls for an investigation, there has been hardly any information yet as to how and why the January 2021 license was granted. Following a Freedom of Information Act lawsuit filed by Citizens for Responsibility and Ethics in Washington (CREW), the public came to learn that the previous administration had granted another earlier and narrower license to Mr. Gertler ostensibly for “charitable purposes.”
The lack of accountability and transparency for both of the licenses is especially concerning given our understanding that the government and presidency of the DRC is now urging the US government to once again grant Mr. Gertler sanctions relief. The DRC is doing so following the settlement agreement (the “Settlement”) it signed with Mr. Gertler’s company Ventora in February 2022. The deal was only partially published after much pressure from the International Monetary Fund and civil society organizations.
According to the Global Magnitsky Human Rights Accountability Act, sanctions imposed under this program may only be terminated if (1) credible information exists that the person did not engage in the activity for which sanctions were imposed; (2) the person has been prosecuted for said activity; (3) the person has demonstrated a significant change in behavior, paid an appropriate consequence, and credibly committed not to engage in similar behavior; or (4) it would be in the national security interests of the United States.
As discussed below, we believe none of these four grounds are fulfilled.
Firstly, as you know, multiple government agencies and courts have found credible the allegations that Mr. Gertler was involved in acts that could be sanctionable. For instance, in October 2016, the Department of Justice reached a settlement with a subsidiary of New York hedge fund Och-Ziff for corruption in the DRC. Och-Ziff recognized that their “DRC partner,” who has been widely identified as Dan Gertler (including in court documents), paid multiple bribes. According to the statement of facts, the “DRC Partner, together with others, paid more than one-hundred million U.S. dollars in bribes to DRC officials to obtain special access to and preferential prices for opportunities in the government-controlled mining sector in the DRC.” Although Mr. Gertler was not directly charged in this case, a US judge sentenced a subsidiary of Och-Ziff on the basis of this information.
Secondly, Mr. Gertler has never been prosecuted for his alleged role in these past corrupt practices. Despite the evidence gathered in the Och-Ziff investigation, Mr. Gertler himself was not prosecuted for his part in this alleged bribery scheme. The UK and US criminal investigationsinto Glencore, another company that worked closely with Mr. Gertler, mainly focused on other countries and events. Investigations in the Netherlands and Switzerland into Glencore’s alleged corrupt practices in DRC, potentially involving Mr. Gertler, have yet to come to a conclusion. The UK’s investigation into Mr. Gertler’s third business partner, Eurasian Natural Resources Corp, is also still ongoing.
The Settlement provides no further prospect of accountability. On the contrary, it explicitly shields Gertler-affiliated companies from prosecution in the DRC, the country he has harmed. Instead of receiving restitution for the billions it lost, the DRC will make a net payment of 189 million eurosto Mr. Gertler’s company to buy back oil blocks and mining permits that Mr. Gertler failed to sell well before he was sanctioned. One of the bases for the sanctions, according to the press release announcing them, was Mr. Gertler acting as a middleman for opaque and corrupt mining and oil deals that reportedly resulted in a loss of $1.36 billion to the state between 2010 and 2012 alone. This amounts to nearly half of the country’s health budget over those three years, which falls far below both the regional average and the per capita spending a World Health Organization-supported study identified as the minimum to provide adequate health care in DRC. It is hard to fathom why the DRC would have to pay Mr. Gertler anything when the scale and nature of the corruption he facilitated likely had a significant impact on the human rights of many Congolese.
Thirdly, Mr. Gertler has apparently failed to demonstrate a significant change in behavior. Evidence published by the Platform to Protect Whistleblowers in Africa (PPLAAF) and Global Witness based on information provided by whistleblowers demonstrated the continued opaque nature of Mr. Gertler’s revenue flows. Following their revelations, both whistleblowers were sentenced to death in the DRC and remain so to this day.
Far from paying an appropriate consequence for his actions, Mr. Gertler will keep collecting an average of $200,000 a day in royalties from three highly lucrative mining projects for at least another decade. The Settlement confirms the validity of those deals despite the questionable manner in which Mr. Gertler concluded them in the first place. While Mr. Gertler is entitled to challenge allegations made against him, his seemingly complete lack of contrition or introspection makes it difficult to say that he has “credibly committed” not to engage in similar practices in the future.
Finally, we believe that sanctions relief is contrary to the US national security interest. The ongoing involvement of Mr. Gertler taints a significant portion of the cobalt supply chain and limits the possibility of US companies sourcing from or investing in the DRC, particularly in the three projects from which he still collects royalties. If sanctions relief is granted on the basis of the lopsided Settlement, it would set a precedent of rewarding actors who have not shown a significant change in behavior while continuing to harm the people that the sanctions were intended to help. Any agreement that would allow Mr. Gertler to continue to profit from the corrupt activity for which he was sanctioned in the first place would undermine the credibility and integrity of the Global Magnitsky sanctions program and US sanctions efforts more generally. It would also further expose US companies and the US financial system to the risk of foreign corruption.
Simply put, the Settlement was negotiated in secret, and the result is bad for the DRC and its people. As such, no sanctions relief should be granted to Mr. Gertler on the basis of this deal. Any sanctions relief for Mr. Gertler and affiliated entities should only be based on a deal that follows the following principles:
The immediate suspension of any further payments to Mr. Gertler, given the allegedly illegal process through which the right to collect those payments was acquired
Transparent negotiations involving the DRC government, the DRC Parliament, and civil society before finalizing the deal
A full declaration of all current business holdings Mr. Gertler and his affiliated companies and proxies still hold in the DRC, and their relinquishment free of charge to the DRC
The conclusion of all state investigations into corruption in the DRC in which Mr. Gertler’s business dealings are under scrutiny
An independent analysis of all past losses incurred by the DRC to define appropriate compensation
Full cooperation from DRC accomplices with investigations by the DRC judiciary
The lifting of death sentences against the two Congolese whistleblowers
Furthermore, given the unfortunate circumstances that some have called an “abuse of the process” surrounding the license granted to Mr. Gertler in the waning days of the prior administration, it is essential for the ongoing legitimacy of the Global Magnitsky sanctions program, and US sanctions more generally, that the US government institute an open and transparent process if it intends to consider any form of sanctions relief for Mr. Gertler. Such a process should include consultations with civil society, most importantly Congolese groups, and Congress.
The power of US sanctions has given you leverage over the current negotiations and a responsibility to ensure that the outcome does not compound past injustices. We urge you to use your voice and influence in support of the Congolese people.
Thank you in advance for your attention.
We remain at your disposal if you have any questions or require any further information.
Sincerely yours,
AFREWATCH
Cadre de Concertation de la société civile del’Ituri (CdC/RN)
Centre congolais pour le Droit du développement durable (CODED)
Citizens for Responsibility and Ethics in Washington
Congo n’est pas à Vendre (Congo is not for sale)
CONGO NOUVEAU
FACT Coalition
FILIMBI
Freedom House
Human Rights First
Human Rights Watch
Initiative pour la Bonne Gouvernance et les Droits Humains (IBGDH)
Les Congolais Debout
LUCHA
Mouvement Justice en Action
Mouvement National des Consommateurs Lésés
Never Again Coalition
Open Society Foundations
Platform to Protect Whistleblowers in Africa (PPLAAF)
After failing to reach an agreement to develop three commercial ports with the Kenyatta administration, Emirati firm Dubai Port World (DP World) has now expressed interest in developing the Dongo Kundu Special Economic Zone (SEZ) in Mombasa.
Last year, DP World sought concession licences to run and operate various infrastructure components in Mombasa, Lamu and Kisumu ports. The company is the latest to express an interest in developing a section of the Dongo Kundu SEZ.
Kenya Ports Authority (KPA) said the project has attracted interest from many companies as it works around the clock to deliver within the project one year.
Acting KPA Managing Director John Mwangemi recently met with a delegation from DP World led by Head of Project Portfolio Group Planning and Project Management Haism Ezz Elarab.
The team, according to KPA, is conducting a feasibility study on the motor vehicle import business for local, transit and transhipment markets.
DP World came into the limelight early last year after retired President Uhuru Kenyatta’s administration engaged it to upgrade facilities at Mombasa, Lamu and Kisumu ports.
According to documents dated January 2022, Kenya was considering signing a concession agreement with DP World to undertake the development, operation, management and expansion of transport logistics services in the country on various components.
If the agreement was implemented, DP World would have been given the power to run at least four berths at the port of Mombasa, the three Lamu Port completed berths and three special economic zones. But in July the same year, the government tore up the deal. During the campaigns, then Deputy President William Rutoaccused his boss, Mr Kenyatta, of trying to sell the port to foreign entities.
The Dongo Kundu SEZ project includes the creation of a free trade zone, a free port, a logistics hub, and an industrial zone. The project is part of Kenya’s industrialisation plan, spanning 10 years and is boosted by the revised draft SEZ Regulations (2019) that offer incentives to companies operating in the zone.
Controversies
In February, 2006, an announcement by DP World that it was taking over management of six US ports in a $3.7 billion (Sh436 billion) deal kicked up controversy in Congress, mainly on security considerations. Under pressure and public scrutiny, Dubai Ports dropped the deal.
In 2012, Djibouti filed an arbitration case in London against DP World, claiming that the firm bribed an official to secure concession to run Dolareh – the largest container terminal in Africa.
Though Djibouti lost, the case revealed insights into dealings between corrupt elites and global concession operators.
Dubai World has displayed dubious tactics since first expressing interest in a port concession in Kenya in 2006.
Political fortunes
American economic historian Fred Cooper described the African state as the “gate keeper” where elites are perpetually fighting to earn corruptly acquired money through control of ports, customs centres and other interfaces between their countries and the rest of the world.
The DP World saga appears to be the latest in the scramble by corrupt elites to control the gate. The scramble has assumed global dimensions in Kenya in the past one year.
International ports and transport logistics operators are involved in battles over ownership and control of port concessions or control over profitable projects involving development and building storage and logistics facilities along main transport corridors. It is a vicious fight where only players enjoying patronage of powerful godfathers succeed.
Public litigation actors have already at the behest of a global shipping group lodged a legal battle where they have injuncted a plan by the government to shift control and ownership of the Japanese-built ultra-modern second container terminal to a consortium compromising the state-owned Kenya National Shipping Lines (KNSL) and Portuguese player – Mediterranean Shipping Lines (MSL).
The timing of the case, come just as the government had concluded plans to hand over management of the terminal to an entity effectively under the control of MSL, and would appear to suggest shipping lines opposed to this deal have calculated that they would rather have the deal postponed until after the August elections.
Political undercurrents
They hedged their bets on the possibility that the new government( Ruto’s) would be inclined to block the deal.
Dubai Ports first entered the Kenyan fray in 2014 when the government floated an international competitive tender to concession the second container terminal in Mombasa.
Port operators from China, Japan, Singapore, Netherlands and several other countries participated in the tender.
The Chinese group, PSA International, which had partnered with local firm, Multiple Hauliers, had the highest marks, with DP World emerging second.
The process was then cancelled amid political undercurrents. Having lost in the open tender, DP World devised another approach.
In October 2016, the UAE quietly signed a bilateral agreement where it committed to lend Kenya $275 million (Sh32.4 billion) for expansion of the second container terminal on condition that Kenya allowed DP World to take control of the terminal.
Two months later, the UAE ambassador wrote to the National Treasury.
What happened next is still difficult to decipher. It seems political fortunes of DP World and its backers took a nosedive. Transferring the second terminal to DP World no longer enjoyed the support of the political elite.
In August 2018, the Cabinet decided to transfer the operations and management to the State-owned and almost moribund KSNL in a deal that included a new shareholding arrangement between that parastatal with MSL.
Effectively, the power and control of the terminal had been transferred to the Portuguese firm.
In 2018, Trinity Energy lodged a case against Mr. BiswickTiyamaluKaswasa a Malawian citizen who was the time it’s Chief Finance Officer “CFO” in criminal case No 6513 under section 348 of South Sudan Penal Act 2008, by complainant Mr. Lual Kurr dated 26th October 2018.
Mr. Lual, the company’s director has accused Mr. Biswick of having robbed the company USD 350,000 (Approx Sh43 million). He alleged that Biswick stole the soured amount and attempted to flee from Juba to Rwanda before his escape plan was thwarted by Interpol.
So how did it start?
We break everything down in a chronological sequence :
Robert E. Mdeza, the current TEL CEO, a Malawian National himself, recruited after several interviews of potential candidates in Blantyre, the capital city of Malawi, and selected Mr. Biswick. The Board of Directors approved the recommendations of Mr. Robert E. Mdeza and accordingly authorised him to sign an Employment Contract in the presence of Mr. Biswick in Blantyre. The employment contract clearly stipulated that; “Clause 21:Anti-Bribery and Anti-Corruption– The employee shall ensure and shall comply with all Anti-corruption and Anti-bribery related legislations of the Republic of South Sudan ensuring that he puts in place adequate procedures to prevent bribery and use all reasonable endeavours to ensure that all staff members of the Company, Contractors and Sub-Contractors contracting with the Company comply with such legislation”.
During his short tenure in the firm, Mr Biswick allegedly broke the basic principles of the company. He’s accused of breaching all provisions of his employment contract, usurped more than US $713,104 (these findings following an independent audit conducted by the company), and tried to take flight back to his home country (Malawi) . Police who searched his apartment following his abscondment discovered several cheque books in his bedroom and several company articles which should have been stored in the companies achieves under lock and key on the company premises.
As the CFO, the Company entrusted Mr. Biswick with financial responsibility, including the handling of cash derived from the sale of petroleum products. Between the 23rd and 25th October 2018, the Company discovered missing cash to the value of US $ 350,000 following this discovery the company started looking Biswick to get answers.
It was discovered that Mr. Biswick had vanished with the cash and was on his way by Rwanda Airways from Kampala to Kigali. The CEO of the Company confirmed that he never gave permission for Mr. Biswick to “leave station”, which is “Standard Operating Procedure” for any employee who is seeking to leave Juba in the Republic of South Sudan. The matter was immediately reported to the Police by lodging a “First Information Report” subsequently a request was made to intercept Mr. Biswickreturn him back to Juba so that the looted funds could be recovered from him. While the Police Department activated INTERPOL, Gen. MajakAkec Malok, Inspector General of South Sudan National Police (SSPS) Vide a Letter Ref. No. RSS/MoI/J/OIGP/SSPS/18-S17 dated 26th October 2018 wrote to his counterpart in Rwanda the Inspector General of Police, in Rwanda stating the following:
“Mr. BiswickTiyamaluKaswasa, a Malawi National, working with an indigenous South Sudanese Company, Trinity Energy Ltd as Chief Finance Manager used his position to steal a sum of US $ 350,000 (Three Hundred and Fifty Thousand USD) from the Company and as a result of Criminal Case No. 6513 was charged underSection 348 of South Sudan Penal Code Act 2008 for offence of Criminal Breach of trust opened at Central Police Division of South Sudan Police Department by Mr. Lual Kur, representing Trinity Energy Ltd.”
“Communication between South Sudan Police Authorities and Rwanda National Police and The Eastern Africa PoliceChiefs Cooperation Organization (EAPCCO), I am kindly requesting your authorities to extradite to Juba for trial”
26th October 2018
INTERPOL ARREST WARRANT FOR MR. BISWICK TIYAMALU KASWASA
Vide Arrest Warrant No MoI/SSPN/NOBT/2018/229 dated 26th October 2018, Maj.Gen. AmouAnyiethRecc, Head of National Central Bureau and INTERPOL nominated 1st Lt. William Majok Diing to bring Mr. Biswick who was working with Trinity Energy Ltd as Chief Financial Officer back to Juba. In his order he stated the following:
“Biswick stole US $ 350,000 (Three Hundred and Fifty Thousand USD) from the said Company, absconded and ran away to Rwanda “
“Communications between South Sudanese authorities and Rwandan authorities led to INTERCEPTION of the subject at Kigali International Airport and “now the Rwandan Authorities asked for an Officer from South Sudan Police Service to Bring Back the Suspect” to Juba.
30th October 2018
Ministry of Justice and Constitutional Affairs, Legal Administration and Public Prosecution Authority, Jubek, Terkeka and Yei River State. Ref: LA/PPA/J,T&YRS/41.A.1 dated 30th October 2018 writes to the Ministry of Interior , Director of National Bureau, INTERPOL ,RSS, JUBA
Mr. Biswick Tiyamalu Kaswasa Passport.
Subject: Suspect BiswickTiyamaluKaswaswa
1) Suspect in criminal case No 6513 under section 348 of South Sudan Penal Act 2008, by complainant Mr. LualKurr dated 26th October 2018.
2) It’s to be recalled the complainant is a South Sudanese National and the suspect is a Malawian National.
3) The Complainant Mr. LualKurr alleged that the suspect BiswickTiyamaluKaswawa stole from the company US $ 350,000 (Three Hundred and Fifty Thousand USD), absconded and escaped to Rwanda.
4) Based on the above information, we request your good office to contact your Rwandan counterparts in order toapprehend the suspect and his repatriation back to South Sudan for investigation.
5) Find herewith arrest warrant issued by Central Division Police Station – Malakia duly signed by the Public Prosecution Authority
The above letter was written by Mr. AnjeloSebitGeatano, Sr. Legal Counsel and Acting Head of Legal administration & Public Prosecution Authority, Jubek, Terkeka and Yei River State.
9th of November 2018
In a Letter to Hon. Johnson Busingye, Minister of Justice, Government of the Republic of Rwanda by Hon. Paulina Wana Willa Unango, Minister of Justice and Constitutional Affairs, Government of the Republic of South Sudan, Juba.
“Honourable, I am writing to your esteemed office this request regarding BiswickKaswasa, a Malawian National, who has been apprehended in your country. Biswick is needed in Juba for criminal breach of trust of US $ 350,000 (Three Hundred and Fifty Thousand USD) which was under his trust as an employee of Trinity Energy Ltd, a legal entity registered in the Republic of South Sudan.”
“Police Criminal Investigation No 6513/2018 dt 26/10/2018 has been initiated against him under section 348 of Penal Code which reads:
– Whoever being in any manner entrusted with the property or with any dominion over property, dishonestly misappropriates or coverts to his / her own or disposes of that property in violation of law or the terms of any trust or wilfully suffers any other persons so to do, commits criminal breach and under conviction, shall be sentenced to imprisonment for a term not exceeding five years or with fine or both.“
“Prima facie case against the suspect is based on evidence obtained so far. Communications between INTERPOL Units in South Sudan and Rwanda have led to interception of the suspect at Kigali International Airport, and we understand he is under detention”
“I am therefore requesting your esteemed office to allow and direct extradition of the subject to Juba, to answer for the charges lodged against him”
20th of March 2020
Mr. BiswickTiyamaluKaswasa Released from Detention and Goes Back to Malawi
Vide Court Order dated 20/03/2020 Biswick was released from detention from Juba prison under orders of First Grade Judge who released him under section 226 of the Code of Criminal Procedure Act 2008 for want of sufficient evidence that would warrant a conviction of the accused.
6th April of 2020
Trinity Energy Ltd Submits “Memorandum of Appeal” and wins for the retrial of Mr. BiswickTiyamaluKaswasa. The High Court of South Sudan Ruled as Follows:
“The Contract related to trust could be made expressly or impliedly. The accused (Respondent) contracted with the Complainant (Appellant) for an employment contract that, the accused will be the Accounting Manager of the Company. The Complainant alleging that the property got lost and that the Accused disappeared in an unambiguous circumstance revealing sufficient evidence for the continuation of criminal proceedings against the accused until he justified that he did not involve in any conduct which violates the law and therefore dismissal of criminal case for lack of sufficient evidence was not a proper action done by the Court , for reasons that, framing of charges against the accused does not mean conviction but rather will give the accused an opportunity for justifying his position and therefore contesting the charges made against him , hence the decision of the Court of substance, to aside and charges be framed against the accused under Section 348 of Penal Code Act 2008 “
The above chronological sequence of the events by itself prove that Mr. Biswick stole more than US $713,104 (Seven Hundred Thirteen Thousand One Hundred and Four U.S Dollars) from the company,these findings following an independent audit conducted by the company. Mr. Biswick was apprehended in Kigali International Airport with USD in Cash amounting to US $ 26,582 under the watchful eyes of the Customs Officials and deposited with the Revenue Authorities of Rwanda. The said amount was later handed over and documented by the INTERPOL Officer who brought Mr. Biswick back to Juba. The Company shall continue to pursue criminal proceedings against the individual until prosecuted to the full extent of the law.
Cash and passport retrieved from Mr. Biswick when he was arrested by the Interpol.
The underlaying fact of the matter is on one hand a criminal at large is being used by International Groups to tarnish the Justice System and Criminal Prosecution Authorities of the Republic of South Sudan. On the other hand, immense effort is being exhausted to derail the economic progress being made in the Republic of South Sudan to stem access to funds from International Financial Institutions who are promoting the integration of the South Sudanese economy with global financial & Insurance markets. Neo-Colonialism in action is being witnessed first-hand in the emerging economy of South Sudan. It is time to defeat this trend and expose the groups operating in developing countries under the noble auspices of “rooting out corruption”.
The last two months have been characterized by a lot of “events” surrounding the queer community in Kenya. From loosing a fierce fashion designer and LGBTQ+ Activist, Edwin Chiloba to Members of parliament calling for jailing of the LGBTQ+ persons in Kenya. Hate can not even describe what and the amount of online violence that has been poured out this week.
Statements on jailing, sending LGBTQ+ persons to the forest among other violent statements shared by Members of Parliament towards the LGBTQ+ persons in Kenya should be shunned away from, rejected and reported. That is Violence.
Edwin’s death, including the hate and the violence from the public that followed has created and sent fear to queer persons in Kenya. What is immoral about living your true self, love? Are we really equal if you can discriminate me? Kill me? Abuse me? Regardless of my sexuality, I am Human, I deserve to live well just like any human around.
Homophobia is the dislike or intolerance of, or prejudice against Lesbian, gay, bisexual, transgender and Queer (LGBTQ+) people. It is portrayed through homophobic behaviour and actions such as bullying, negative comments, physical attacks, punitive laws and discrimination.
The Members of parliament (MPs) have instigated violence towards the LGBTQ+ persons through their online platforms.The present long held laws in Kenya make it harder to report a violation as the laws have already created a perception being LGBTQ+ is illegal. We must encourage and choose leaders who support issues that advance our lives, socially, economically amongst other aspects of life. What is this that irks the religious leaders, politicians about Sexuality? LGBTQ+?Being LGBTQ+ is not illegal.
Kenya is not a theocracy and religious texts, biases should not be used as the basis for or justification of Public policy or any social and health issue. There are three branches of government in Kenya, Your religious institution is not one of them.
We have seen how the religious groups, leaders and politicians have instigated violence and discriminations through their platforms. They have misinterpreted laws and policies to misinform their audiences. Through this, more violence and discrimination has occurred in manysettings, this has led to manufacturing of moral panic by crafting easy to understand narratives based on misinformation and selective interpretations of human rights, religious teachings, negative cultural beliefs and scientific evidence that create a divided worldview of “good people” versus “bad people”
Kenya is a country, NOT a religious institution. These government bodies and officials should not be allowed to impose their persona; religious beliefs on a whole country. Kenya is ONLY “CHRISTIAN” “MUSLIM” when issues around sex, sexuality and LGBTQ+ issues is involved. Never when politicians milk this country dry, Only at Homosexuality? Religion should not influence legislation and policy. That is demeaning democracy.
Homophobia continues to be a major contributor to the ongoing online violence that is experienced by LGBTQ+ People in Kenya and beyond. No law should enable for discrimination or violence towards LGBTQ+ people. The LGBTQ+ People experience prejudice in all areas of life, such as health, employment and housing. They are also frequently blackmailed, raped and in the worst cases, murdered. Because the law is used against them, the LGBTQ+ people have no access to protection from this kind of abuse. We should not fuel prejudice and use the law to target a group of people we don’t agree with! We all deserve respect. Basic human rights, dignity and respect must be accorded to each and every individual regardless of sexual orientation. Any law, policy and even a Constitution of a country should promote diversity, inclusion and tolerance. We are all equal and have right to protection under the law. Embracing diversity of different sexualities is key in ensuring that no violence or discrimination is experienced.
Three Safaricom subscribers have taken on the giant telco accusing the company of among others, transfer pricing by unlawfully removing money belonging to M-Pesa account holders from Kenyan and shifting it to low tax jurisdictions.
In a case filed under certificate of urgency, the three claim that Vodafone Group and the related companies have made money in Kenya and should, therefore, not be allowed to ‘cart away’ the money out of country but plough it back into the local economy.
S.Gichuki Waigwa, Lucy Nzola and Godfrey Okutoyi say the carting away of billions has reduced the Tax-to-GDP ratio and long-term prospects for the Kenyan economy.
Further, they claim that the move has increased Kenya’s public debt, thereby unnecessarily leading to higher taxes being imposed on taxpayers.
The trio through their lawyer senior counsel Wilfred Nderitu want the court to compel the company to refund M-Pesa account holders more than Sh305 billion, which they said the company admitted from March 2019 and March 31, 2020.
The subscribers have further accused the Central Bank further of failing to notify other regulatory agencies that the consistently high profits that Safaricom reported were largely being derived from MPesa Account holders’ funds through theft of interest and investment income generated using their monies.
“The Central Bank was at all times well aware that these illegal and unlawful circumstances would ultimately lead to erosion of the shareholder value of Safaricom’s shareholders,” the petition reads.
It is their argument that the transfer pricing between Safaricom Plc on the one hand and the Vodafone Group Plc and its subsidiaries on the other hand was fraudulent, contrary to the relevant OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
They claim the company manipulated and failed to observe the “arm’s length” principle as to the setting of prices approximate to those set by unrelated parties for comparable goods or services and under comparable circumstances in an open and free market and therefore engaged in tax evasion.
The three have sued Safaricom and its affiliates including Vodafone Group Plc, Vodafone Kenya limited, M-pesa Holding Company limited and Vodafone International Holdings B.V.
They further wants the High Court of Kenya to declare that the Fuliza overdraft service is an illegal and unlawful service for lack of a proper and effective regulatory framework, leading to predatory lending through the charging of usurious interest rates.
“A further Declaration that the Fuliza overdraft service has since inception on-lent, and continues to on-lend, to M-Pesa Accountholders funds belonging to non-borrowing M-Pesa Accountholders without their consent in contravention of the Data Protection Act,” seeks the duo.
They further wants the high court declare that the misappropriation of M-Pesa Accountholders’ funds and the theft of interest and investment income derived from such funds inevitably resulted in the erosion of the value of the shares of Safaricom Plc.
The petitions claim that in January 2009 by the Government through the then Permanent Secretary in the Ministry of Finance Joseph Kinyua, and by the Central Bank of Kenya, stated that M-Pesa Service was risk-free, safe and reliable.
However, they say the statements and were false and made with the intention that they would be acted upon by M-Pesa Account holders and Safaricom shareholders, and that they were so acted upon to the detriment of the Accountholders and the shareholders.
The three wants an order for a determination of the appropriate transfer method applied in respect of the transfer pricing transactions between Safaricom Plc and the Vodafone Group Plc and their associated companies and a re-computation of the appropriate respective prices in accordance with the Kenyan Income Tax (Transfer Pricing) Rules, the OECD Guidelines and the “arm’s length” principle.
“A declaration that the Safaricom M-Pesa Terms which purported that the Registration and Acceptance Form together with the Conditions of Use constituted a binding agreement between Safaricom Plc, M-Pesa Holding Co., Ltd and the M-Pesa Accountholders were null, void and of no legal effect ab initio,” the petition reads.
The three have also sought the lifting the corporate veil of Safaricom Plc, the Vodafone Group Plc, Vodafone Kenya Limited, M-Pesa Holding Company Limited, Vodafone International Holdings B.V., M-Pesa Foundation Charitable Trust, Safaricom Foundation Charitable Trust and Carepay Limited.
“A finding that the Directors of Safaricom Plc, Vodafone Kenya Limited, M-Pesa Holding Company Limited and Carepay Limited were in breach of Sections 140, 143-146 (both inclusive), 168 and 1002 of the Companies Act (No. 17 of 2015) as to Directors’ duties and the prohibition against fraudulent trading,” seeks the duo.
They contend that they suffered the following other forms of injury, loss and damage.
The duo further contend that if they had been receiving the income derived from their real money, they would not have had to be borrowing money which was essentially their own, through overdraft or savings and loan service the Fuliza Service.
They state that they have been made aware of the probable highly detrimental financial consequences that this suit may have for various Defendants in the suit, in view of the magnitude of the decree that may be passed against them, or some of them.
Accordingly, the three argue that without prejudice whatsoever to the foregoing in any respect, that they would at this stage be amenable to exploring an option that is good for all the parties in the suit, such as the conversion of debt to equity.
Rumor mill has been abuzz lately following gossip published on Daily Nation that a senior government official linked to a major scamming scandal.
“A senior government official – who not long ago was in the thick of a major scamming scandal – is having trouble discharging duties of his big office. The man cannot travel to certain countries as he is wanted for immediate arrest. A major airline in one of the Asian countries has also blacklisted him from flying with them over the alleged criminal record. The man is said to be worried how he will discharge his duties with the arrest orders hanging over his head. He had in the recent past told his cronies how his new office will facilitate him in a globetrotting spree.” the Daily Nation’s column read.
While many have been guessing that it is the National Assembly’s speaker Moses Wetangula following his links to alleged gold scam that put him on the spotlight, there has not been any official or public announcement in this respect of the speaker being on a wanted list and being banned from flying United Arabs Emirates flights.
Unlike his equals in the government, Wetangula has not been traveling abroad as much. He only visited Algeria recently since joining office in September last year.
The Scam
On April 27, 2019 in the United Arab Emirates, ex-President Uhuru Kenyatta reportedly met with the Vice President and Prime Minister of the United Arab Emirates (UAE) who is the emir (ruler) of Dubai, Sheikh Mohammed bin Rashid Al Maktoum.
The Emir is said to have raised concerns about problems he was having with his gold consignment that was to be airlifted through Nairobi.
The Emir is reported to have produced an audio recording that was replayed to Uhuru purportedly in a conversation between the Royal family’s representative and a Kenyan contact.
The recording is believed to be the same one that was leaked online at the weekend, and which prompted a statement from the Director of Public Prosecutions (DPP) Noordin Haji directing the police to investigate the audio clip titled “Wetang’ula exposed in fake gold scam,” apparently referring to Bungoma Senator Moses Wetang’ula.
DPP's Press Statement on Audio Clip Titled "WETANGULA EXPOSED IN FAKE GOLD SCAM" pic.twitter.com/nBouGYZXBl
— Office of The Director Of Public Prosecutions (@ODPP_KE) May 18, 2019
Raila Odinga is also said to have been present in the Dubai meeting. The leaders were returning from a summit in China.
Raila and Uhuru had stopped over in Dubai for a weekend-long meeting on their way from Beijing, where they had attended the Belt and Roads Forum, a signature project for Chinese President Xi Jinping to connect Africa, Asia and Europe, officials said.
Taken in circles
During the meeting, the Dubai ruler is said to have shared with Uhuru the audio that captured a conversation between his nephew Ali Zandi and the Kenyan contact, and also explained how they had been taken in circles in Nairobi over the gold consignment that was to be trucked from DRC Congo and flown out via Jomo Kenyatta International Airport.
The Sheikh had been told by their Kenyan contacts the gold consignment had been seized at JKIA, but authorities say the Dubai ruler was conned as there was no such cargo.
It would appear Sheikh Maktoum had decided to raise the matter personally with Uhuru because it had been three months since he had lodged a protest with then Interior Cabinet Secretary Fred Matiang’i over the gold consignment allegedly seized at JKIA.
In the January 20, 2019 letter, the Sheikh had requested immediate action regarding the shipment of gold under “our company’s name Zlivia, which is being retained by your authorities in Kenya.”
The Sheikh had acknowledged that he understood the delay “was caused by the last terrorist attack in your country” apparently referring to the dusitD2 terror attack on January 15.
“Nevertheless, now we need your immediate and strong action to release the totality of Zlivia Gold shipment to UAE as soon as possible and according to the instructions by our General Manager Mr Zandi, who is there in Kenya to organise the shipment.”
“It is quite urgent to solve this issue the earliest,” the letter by the Dubai ruler had read.
Zandi flew to Nairobi on the eve of Christmas Day 2018 and was still in Kenya by the time the Sheikh wrote to Dr Matiang’i to try to trace the gold haul from Ndande Tribe in DRC Congo since it had been three months since the deal was sealed with the Kenyan contacts.
The Scheme
The scheme started on September 25, 2018, when the group approached Zandi, who represents Zlivia Company, a gold trading company based in Dubai. They had said they would deliver 4.6 tonnes of gold.
Zandi had been in Kenya for almost a month and left sometime in February that year, without the precious cargo. Having reached a dead end, it would appear the Sheikh saw an opportunity in Uhuru’s stopover in Dubai to seek his intervention.
On returning back to the country, Uhuru reportedly summoned his security bosses and played the audio to them.
Among those present in the meeting were Matiang’i, National Intelligence Service boss Maj Gen Philip Kameru,former Inspector General of Police Hillary Mutyambai and ex-Interior Principal Secretary Karanja Kibicho.
The leaked audio put Moses Wetang’ula at the heart of the multi-million shilling fake gold scandal.
In the audio conversation, Wetang’ula dropped the names of President Uhuru Kenyatta and Opposition chief Raila Odinga to assure a Dubai gold investor believed to be Ali Zandi that their detained consignment would be released.
Wetang’ula assured Zandi, a business associate of United Arab Emirates ruler Sheikh Mohammed bin Rashid Al Maktoum, that he had talked to Raila who in turn reached out to Uhuru to secure the release of the pricey containers.
“I am a hundred per cent sure there is no problem and tell Sheikh not to panic. We are finishing this matter and we will come and toast together,” Wetang’ula assured Zandi.
The conversation begins with an angry Zandi telling Wetangula that the Sheikh had run out of patience, yet the players including Wetang’ula himself had pocketed their share to facilitate the release of the gold.
From the conversation, it also emerges that flamboyant businessman Zaheer Jhanda claimed to have been picked as a representative of “Interior CS Fred Matiang’i”.
“He [fake Matiangi] took the money, you [Wetang’ula] took the money. What else are you talking about?” an angry Zandi asked.
It is unclear, however, how much money Wetang’ula allegedly received as he is overheard disputing in the audio an undisclosed figure sent to him.
“We will have to sit down and discuss this issue of money because the amount of money I have seen is not the amount of money you are talking about,” Wetang’ula says.
In an ironical twist, Wetang’ula dropped Raila’s name, yet he was blasting the Opposition leader as a despot who allegedly orchestrated his removal as Senate Minority leader.
“The manner in which Raila runs his party (ODM) is like a Gestapo, nothing happens without his concession… and he tried extending those dictatorial tendencies into the coalition (Nasa), of being very intolerant to others’ opinion and being very impatient when someone is explaining something,” Wetang’ula once said of Raila.
However, in this conversation about gold, Wetang’ula paints Raila as a man of influence, who had the President’s ear.
Wetang’ula: “How are you?”
Zandi: “Not very good. I don’t know how to answer you.”
Wetang’ula: “No, something is happening?”
Zandi: “What is going on?”
Wetang’ ula: “Raila met with the head of state on this matter and explained to him and the head of state has called the minister concerned [Interior CS Fred Matiang’i] and he is seeing him tomorrow. He is my neighbour and I have seen him this morning and he has told me the head of state has been away in Mauritius for a week. He will see him tomorrow and he says hopefully before the end of the week, we will be able to settle this matter once and for all.”
At this point, according to the audio, a pessimistic Zandi asks Wetang’ula why he is roping in other players, yet Matiang’i was allegedly in control.
Zandi: “Why are you bringing in other people?”
Wetang’ula: “Let me tell you what is happening. Since Raila brought this matter to the attention of the boss [Uhuru], let him also go and explain to him what has been done so far, then he will communicate to you.”
Wetang’ula assures Zandi that the Raila and Uhuru meeting will undoubtedly unlock the stalemate and allow the gold consignment to be airlifted to Dubai.
Zandi: “Who will communicate it to me?”
Wetang’ula: “Through either Raila’s people or through Zaheer [Jhanda] to send your vessel to come and pick the items. So it is okay.”
From the beginning, Zandi had warned Wetang’ula, he of the “noisy and messy divorce” that the gold matter could turn catastrophic if not well handled.
“Believe me, any movement will be a disaster for all of you and myself included,” he warned.
Leaked phone calls:, Moses Wetangula exposed in fake gold scam
Uhuru expressed concerns over the con games in the country for which JKIA is used as the operational base. He then demanded immediate action.
That order apparently triggered the police operation that saw the arrests of more than a dozen people and discovery of fake gold in Kileleshwa, Nairobi.
The operation saw the arrest of businessman Jared Otieno, who was detained over claims he swindled a man from Laos Sh300 million on the pretence he would supply him with gold.
Other officials said the saga was first brought to the attention of president Uhuru in early April 2019 by Raila. This was after Raila flew to Dubai and met Sheikh Marktoum, who reportedly asked for his intervention to have the said gold weighing 4.6 tonnes released from JKIA.
During the meeting at a hotel in Dubai, a Kenyan who has been mentioned in the saga was introduced to Raila as the one who was supposed to supply the said gold from DRC, but the commodity was detained at JKIA.
The Kenyan man was embarrassed when he called a man purporting to be Matiang’i on the phone only for Raila to declare the person on the other end was not the CS.
“He put the phone on a loudspeaker and when Raila heard the voice of the other party, he intervened and declared it was not the CS. This ended the conversation,” said an official aware of the issue.
It was at that point that Raila is said to have told the Dubai ruler they had been swindled and promised to raise the matter with the Kenyan officials. Raila is said to have flown back to Kenya and met the President and other security officials, and informed them of the saga.
Mr Haji at the time said he had personally received a complaint from victims of the scam claiming that the personality had been dealing with them for some time and invoking the then President’s name in their dealings.
Preliminary investigation revealed that the scheme started on September 25, 2018, when the group approached Zandi.
The group reportedly used known gold dealers, including a Russian national, to state that there was a huge amount of gold in DRC ready for movement to Dubai.
On September 27, the Kenyans said the gold had been detained by customs officials at JKIA.
According to the police, this prompted Zandi to call Wetangula for help.
On December 15, the then senator flew to Dubai on the invitation of Zandi, for a meeting, during which he assured them he would help secure the release of the gold.
However, Zandi declined the demands for cash to facilitate the release and instead flew to Kenya on December 24.
His efforts to meet senior Kenyan Government officials were unsuccessful. Instead, the Kenyan contacts took him to JKIA, where he was shown sealed boxes purportedly containing the gold.
Apparently, the extortion ring includes some Government officials who facilitate the movement of their victims to the secure section at JKIA, where they have leased space for their fraudulent businesses.
On January 21, 2019 Zandi, who was still in the country, was moved to another hotel to meet a “senior Government official”, who would facilitate the release of the precious cargo.
Senior official
Those behind the scheme organised imposters, one masquerading as a powerful Cabinet secretary, who they drove at night in two four-wheel drive cars to the hotel in Karen.
Zandi is said to have met the Government official in his car. The official apparently assured that the gold would be released. He flew back to Dubai after a month. But the said gold never got to Dubai.
Police say no such gold was held at the airport.
The ruler of the United Arab Emirates Sheikh Mohammed bin Rashid Al Maktoum. [Photo: Courtesy]Frustrated, Sheikh Maktoum wrote to Kenya to complain about the scam and demanded action on those behind it.
The “seizure” was supposedly the first tranche of a 23-tonne gold consignment that was to be brought from the DRC.
Police investigations show the senator flew to Dubai to convince the royal family he would use his connections to have the said gold released.
President on Thursday announced that the government will subsidise the cost of the 6kg gas cylinder by Sh2,000. Currently, a 6kg cylinder costs about Ksh2,800, and with the subsidy, the price will fall to about Ksh500 in the next financial year beginning July this year.
This he said is in line with the government’s plan to increase the use of clean energy and reduce the use of fuel wood. The President, who was speaking at the relaunch of the 15-year-old Women Enterprise Fund in Nairobi, also announced that 8 per cent VAT on gas will be removed. This he said will equally bring the prices of the product down significantly.
For years, Mohammed Jaffer through his company African Gas and Oil Company Limited (AGOL) has been able to maintain the hold of liquid petroleum gas (LPG) industry. According to Energy CS Davis Chirchir, the firm controls 75 percent of the country’s gas supply. And now Ruto’s plan for cheaper gas spells doom for the empire that has rested on the monopoly.
A grand schemer, Jaffer has sailed through the regimes of Moi, Kibaki and Uhuru to create and maintain a monopoly in the oil, grain and gas industries. Like a chameleon, the oligarch has been able to create relationships with every regime and camouflage.
His other successful venture is Grain Bulk Handling Limited (GBHL). A report by the Finance Committee reported Grain Bulk controls 98 per cent of all grain imports and has been in operations since 2002.
Cheap Gas
Through popular brands; ProGas and Sea Gas owned by his company Proto Energy, Jaffer has been controlling the LPG market in the recent years. The government in 2016 formulated an ambitious plan for cheap gas and launched the Mwananchi Gas Project ‘Gas Yetu’. The announcement of the subsidized gas have hopes to many Kenyans who rely on toxic energy sources such and kerosine and firewood.
Mwananchi Gas project was to sell under the Gas Yetu brand and was meant to safeguard the poor from respiratory diseases caused by the use of firewood for cooking. It was also meant to contain the rampant destruction of forests.
In 2017 Gas Yetu was allocated Ksh2.2 billion for the period 2017-2019. A further Ksh700 million was allocated through a supplementary budget raising the total cost of the project to Ksh2.9 billion.
The project would have seen millions of households receive subsidized 6kg cooking gas cylinders at a cost of Ksh2,000.
5 million households were targeted with the Gas Yetu cylinders fitted with burners and grills.
The beneficiaries would refill them at a cost of only Ksh840 per cylinder.
This project was strategically shot down.
It all started with a contract awarded by the Petroleum Ministry and the National Oil Corporation of Kenya (Nock) to a consortium led by Allied East Africa Ltd.
Having gotten the tender, but with no capacity to deliver, the consortium turned to Mohammed Jaffer owner of Africa Gas and Oil (AGOL) which also owns Proto Energy Limited under which Pro Gas is sold.
The company was then just beginning and was virtually unknown in the country.
Jaffer had however managed to obtain a lease for use of a cylinder pressing machine from KPA in a shady deal that seems to have been orchestrated by officials from the Energy Ministry.
The fraudulent suppliers, in the first batch, delivered faulty cylinders raising questions about quality assurance and monitoring of the manufacturing process.
A total of 67,251 cylinders were found to be leaking posing a serious safety hazard had they gone into circulation.
This, however, seemed to be part of the grand plan to kill the project as then PS Andrew Kamau canceled the tender purchase order of 357,000 cylinders despite money having been paid out to East Africa Allied and Mohammed Jaffer.
The PS also canceled another purchase order of 700,000 cylinders with little explanation as to how the total budgetary allocation that had risen to Ksh2.9 billion had been spent.
This necessitated Consumers Federation of Kenya (COFEK) to sue Government in October 2018.
COFEK told court the Government’s ambitious program to buy and supply 5 million subsidized gas cylinders to low- and middle-income households by end of 2019 were in jeopardy as 60% of the cylinders delivered were faulty.
As Kenyans continued wondering why the Gas Yetu project is not taking off despite the immense benefits it would have afforded them, a new player in the market was beginning to emerge.
With its bright pink colored cylinders, Jaffer’s Pro Gas was starting to penetrate into the market offering gas cylinders at cheaper rates than competitors.
In October 2018, at the height of the Gas Yetu scandal, DCI George Kinoti said he will begin investigations into the loss of billions.
“We will initiate a probe. We cannot allow a program that is funded by taxpayers to put Kenyan citizens at risk,” said Mr Kinoti.
Years later, no investigations have been done and no one has been taken to court over the scam.
The AGOL plant and Proto Energy, the maker of Pro Gas, have offered Mr Jaffer a firm grip on the lucrative cooking gas market.
Rostam Aziz
With the 75 percent control of LPG, Jaffer has had an upper hand in pricing control of the cooking gas and with the death of subsidized gas, the field has been left open for him and that’s why the entrance of Tanzanian billions Rostam Aziz into the Kenyan market is not only a blow but a spell of doom to the future of the Mombasa tycoon whose empire has thrived in monopoly and survived through regimes he’s been able to cut deals with.
In February, Kenya offered the Tanzanian billionaire the licence to set up a cooking gas plant and storage facilities at the Mombasa port, averting a potential trade spat between the two neighboring countries.
The energy regulator cleared Taifa Gas, which is owned by Aziz who had previously lamented that Kenya had gone quiet over his enquiries to build a 30,000-tonne LPG handling facility in the country.
The entry of the business magnate, who was ranked the first dollar billionaire in Tanzania by Forbes in 2013, signals a vicious battle for control of the Kenyan cooking gas market that remains under the tight leash of the Mombasa-based tycoon Mohamed Jaffer.
Mr Aziz had in 2021 complained that Nairobi went mute on his 2017 enquiry to build an LPG plant, lamenting the barriers for Tanzanian entrepreneurs seeking a presence in Kenya.
Taifa Gas is the largest LPG supply company in Tanzania and has been feeding the Kenyan retail market via road.
Now, Mr Aziz is seeking a large share of Kenya’s LPG market.
It also sets the stage for a billionaires’ fight pitting Mr Jaffer and Mr Aziz, 58, that is first expected to cut the cost of handling and evacuating cooking gas from the ships to the mainland, allowing dealers to transfer the cost reliefs to consumers.
Just like Mr Jaffer, Mr Aziz has invested in building political networks that saw him serve as MP and treasurer of the Tanzanian ruling party Chama Cha Mapinduzi (CCM). Jaffer is said to have financed the campaigns of the unsuccessful presidential bid of Raila Odinga and through his high connections enjoyed protection of his business empire during the handshake tenure.
During the launch of the Taifa Gas plant in Dongo Kundu, the president directed for tax on gas to be cut in a bid to lower the prices of gas.
Taifa Gas wants to build the 30,000-tonne Kenya facility at the Special Economic Zone in Dongo Kundu, near the port of Mombasa. It was earlier estimated to cost $130 million (Sh16.25 billion).
This will be right at Mr Jaffer’s doorstep, with his firm Africa Gas and Oil Ltd (AGOL) operating a multi-billion shilling facility in the same area.
President William Ruto (left) and Taifa Gas Group Chairman Rostam Aziz during the ground-breaking ceremony of the 30,000-tonne plant at the Dongo Kundu Special Economic Zone in Likoni, Mombasa on February 24, 2023.
Construction of the Taifa Gas facility offers Kenya an opportunity to lower cooking gas costs in the absence of price controls.
LPG prices have hit new highs, with the 13-kilogramme container retailing at an average price of Sh3,266 in Nairobi while the six-kilogramme one has crossed Sh2,000.
It is unclear what AGOL charges oil firms for handling cooking gas but the lack of other players in the business suggests a lack of significant competition that has kept the fees high.
AGOL has a storage capacity of 25,000 tonnes of LPG following an upgrade last year of the facility initially built in 2013.
The plant was built to allow for bulk imports of cooking gas to lower unit costs through economies of scale and curb shortages, which had been made difficult by the smaller import terminal at Shimanzi.
It had a storage capacity of 10,000 tonnes and the 25,000 tonnes unit is ranked among the largest terminals in sub-Saharan Africa.
The import handling and storage unit has helped relieve demand pressures through the reduction of stock-outs, effectively easing pressure on LPG prices.
The business mogul is also the owner of Grain Bulk Handlers, which has a near monopoly in the discharge and handling of bulk grain cargo at the Port of Mombasa.
End Monopoly
In 2020, members of the National Assembly’s Departmental Committee on Finance and National Planning sought to end the monopoly in grain handling services at the Port of Mombasa.
The committee, led by Homa Bay Woman Representative Gladys Wanga, said the Kenya Ports Authority (KPA) licensed Grain Bulk Handling Limited (GBHL) to operate at berths 3 and 4 at the port with an exclusive mandate that expired on February 15, 2018.
After visiting GBHL on November 21, 2020, the committee had recommended that following the expiry, there has been agitation to liberalise grain bulk handling services by allowing other additional operators to equally promote competition in the industry.
Kapa Oil Refinery, Africa Ports and Terminals, Multiship International and Kipevu Inland Container EPZ Limited are the competitors who expressed their interest to build and operate specialised dry bulk discharge and handling terminals for grains at the Port of Mombasa.
The report is catching dust and the recommendations have never been implemented. Parliament went mute with allegations that they were handsomely greased for their silence. Will Ruto revisit this?
Despite GBHL’s exclusivity expiration in February 2008 and the KPA board on April 30, 2008 resolution that the handling of grain at the port be liberalised to eliminate monopoly and promote healthy competition, GBHL continues to enjoy the monopoly with other players locked out, they operate 98 per cent of all grain bulk services at the Port of Mombasa and have been in operation since 2002.
GBHL has a storage capacity of 220,700 tonnes in Mombasa and 134,000 tonnes in Nairobi.
Tax Evasion
Inside President Ruto’s plan Kenya targets tax revenues above 17.8 percent of GDP in the 2023/2024 and above 18 percent of GDP over the medium term.
As part of its economic turnaround plan, Kenya has set its eyes on a Ksh3 trillion ($24 billion) revenue collection by the Kenya Revenue Authority (KRA) in the 2023/2024 fiscal year and Ksh4 trillion over the medium term through tax administrative and policy reforms.
Ruto has reiterated that tax evasion is a major problem and vowed to go after businesses that have been in the past sailed through the system under protection from the corrupt elements that enabled them to evade paying taxes in his bid to hit set targets.
Billionaire Jaffer is not new to tax evasion accusations, in 2012, KRA slapped the firm with a demand for customs tax of Sh458 million and Sh24 million for falsification of documents contrary to section 23 of East African Community Customs Management Act.
A tax suit filed in Mombasa Misc Application No. 314 of 2020, revealed how KRA raided Jaffer over a suspicious tax evasion scheme among his chain of companies across oil, grains and liquid petroleum gas industries.
In October 2020, the taxman obtained a court order and went on to grab documents from the companies for analysis.
In filed court papers, KRA claims that the preliminary findings revealed that the companies, One Petroleum Limited, Africa Gas and Oil Company Limited, One Gas Ltd and Grain Bulk Handling Limited had cheated the taxman of Sh68 million.
KRA withdrew tax compliance certificates for Jaffer’s companies on the basis that the companies were owned by the same families and investigations will involve all of them.
The companies have shared directors including; Mutjaba Mohamed Jaffer, Ali Abbas Jaffer and Mohamed Husein Jaffer.
The companies got off the hook on technical grounds, which leaves to question the fate of documents which the taxman had demanded to hold for six month for a thorough investigation.
The court threw out KRA orders cancelling the tax compliance because the taxman withdrew the certificate via email without notice or offering the billionaire a chance to defend himself.
The rare raid came as a surprise to outsiders as the family was believed to have close ties to powerful politicians in and out of the government at the time.
Mohammed Jaffer And Azimio Leader Raila Odinga
Ruto’s spirited campaign for cheap gas is seen by analysts as a move to cut down to size Jaffer’s influence in the gas industry and to put an end to his monopoly that has seen his empire stretch. It is also seen as a move to cut down to size his arch rival and opposition leader Raila Odinga who has an interest and investor in the gas business. Others also believe Ruto is revenging as Jaffer supported Raila in his unsuccessful bid.
Will the business mogul survive the Ruto’s regime onslaught like he has survived the previous reigns or will Ruto mark the end of his monopoly? Time will tell.
