Connect with us
https://crm.cytonn.com/events/weekly_real_estate_site_visit

Investigations

Details Of Cartels Wars At City Hall Leading To Impeachment Of Nairobi County Assembly Speaker Elachi Revealing Corruption Bed And Clerk Jacob Ngwele

Published

on

County Assembly Clerk Jacob Ngwele

More often during his predecessor’s tenure, Nairobi Governor Mike Sonko attributed the city’s problems to Kidero and the faceless cartel that derailed developments by engaging in massive theft of public funds. George Wainana Kidero’s top aide became one of the wealthiest in the city let alone his boss, both are on anti graft radar. City hall was a den of thieves and little has changed with entrance of Sonko as Kenya Insights found out.

Some 103 MCAs voted to remove the speaker Elachi from office, two voted against while two others abstained. The MCAs removed her for causing ‘great embarrassment’ to the county assembly. In a motion by Waithaka MCA Antony Kiragu on Thursday, the MCAs accused Elachi of gross misconduct.

MCAs gave their grounds for impeachment but today we’re not here for the junky literature which is just that, unknown to the public, this was the end of a fierce internal wars that has been ongoing at the City Hall which has the biggest allocation share in the county governments and controls biggest wealth share in the county.

Majority Leader, Abdi Guyo.

The County Assembly Board as Kenya Insights found out is where Beatrice’ problems started. The constitution of that board is not only suspicious but legally unbalanced, it’s constituted of the Speaker; Beatrice Elachi, Majority Leader, Ibrahim Abdi Hassan, Minority Leader, Elias Otieno, Assembly Clerk Jacob Ngwele and an outsider.

How for instance majority and minority leaders sit on the same board doesn’t make sense even in parliament it doesn’t exist. Being the most powerful board that cuts the deals, it’s constitution and members are carefully considered. Godfathers will want their loyalists to be at the helm.

Assembly’s Clerk Jacob Ngwele who has been jumping from the DCI offices to the courts defending himself against corruption accusations once again stands out as a controversial figure in the web. As we found out, his appointment to the county assembly remains questionable; he was handpicked from the National Assembly, and there’s no record showing the clerk’s position was ever advertised, this being a public office, goes the red flag. Mr Ngwele’s name was not tabled before the assembly for approval, making the appointment an “illegality” contrary to the County Assembly Services Act, Article 18 (2), on process of approving the appointment of a clerk.

Related Content:  BUSTED: Mutahi Ngunyi Attempts To Save Face Flops, He Stole Sh.12.5M NYS Money And Here's The Proof

A review of the Assembly’s funds cashbook according to audit report by Auditor General Ouko revealed that the money was irregularly transferred in 2016/2017 from the fund account to various other accounts without approval of the county executive committee member for finance. Consequently, the county assembly was in breach of law.

Ngwele admitted he irregularly reallocated Sh42 million meant for MCAs car loans. He told the Public Accounts Committee that he used the money to pay MCAs’ salaries and imprests. Of interest was the fact that he transferred the money from the loans fund account to the operations account without approval of finance executive as required by law.

Mr Ngwele’s woes began in June this year after Speaker Beatrice Elachi called for investigation into multiple cases of alleged financial malpractice.

Ms Elachi wrote to the DCI headed by Mr George Kinoti that she discovered several instances of malpractice, including illegal procurement done by the Office of the Clerk. But Mr Ngwele swatted the allegations claiming that Ms Elachi had a personal interest in a Sh150 million tender for the acquisition of the Speaker’s residence, claims Ms Elachi denied and challenged him to corroborate which he has never done.

On the issue of Speaker’s residence, Kenya Insights has discovered that the plan was a mastermind of not the speaker but allegedly Ngwele and a Sheriff Mwendwa, who works as an adviser in the legal department of National Assembly. Sheriff’s involvements in the county assembly’s businesses is questionable. How did they get the price before opening the financial which should be fine with the bidder? Details of the planned purchase of the house was leaked to the media when they failed to convince the speaker about it.

Renovation of the kitchen, double payments and general flawing of procurement procedures within the county assembly prompted the speaker to invite DCI, EACC to investigate the board members and the theft loopholes within the assembly and that’s when hell broke loose. Suspiciously, Ngwele’s sister is also the head of the kitchen department. We’re told nepotism is rife in the assembly, accusations that should concern NCIC and relevant bodies.

Word on the street is after Ngwele was arrested by Haji after being reported to the DCI by Beatrice Elachi, he decided to take the war to the next level and that’s how the impeachment motion was rushed. According to sources talking to Kenya Insights, Ngwele who also doubles as the Chief Legal Adviser reached out to the majority and minority leader to help in fighting speaker who by now is a big trouble for the anti corruption purge, her consistency against graft within the assembly placed her in the fire.

Related Content:  Revealed: New Chase Bank Insider Dealing Scam That Should Worry Customers

Ngwele we’re told just like his County boss Sonko, has a reputation of recording all dealings, he has some boardroom recordings implicating Guyo, Otieno and many others which he uses as leverage more of blackmail in my view. So he instructed the minority and majority leaders who’re in the middle of all these scandals to ensure the speaker is impeached.

Since they’re all intertwined, the common enemy becomes the speaker because if the clerk is to go down, then he won’t alone. As part of Deal, Guyo and Otieno attempted to use their connections at DCI to have charges against Ngwele withdrawn and this allegation can be ascertained by CCTV footage at the Headquarters.

Ngwele was at one point caught up in s double payment on a tender which again we’re told was to a cousin but on DCI detection, he reversed the extra. Besides, despite his salary, he boasts a Landrover Discovery, there are accusations that he made a Sh50M investment recently with a real estate agency with his wife.

Ngwele is also being accused of being in the center of the war which included propaganda and negative publications on the speaker, he allegedly paid Star and Daily Nation journalists millions in the media wars. Because the media enjoys the monopoly of agenda setting, it is easier to sway perceptions if you run the media and own the narrative.

Corruption and impunity thrives within the assembly and we’re also told that the MCAs were allegedly threatened to have their foreign trips cut, not included in prestigious committees during the lobbying for the impeachment of speaker. The manner of voting during the impeachment is also questionable, it was done through acclamation as opposed to secret ballot, this was intentional to coerce members to vote in a particular pattern.

Minority Leader, Elias Otieno.

High Court nullified the impeachment and reinstated the speaker but the MCAs who acted like university goons, stormed her office while high as a jet to throw her outside in a clear disregard to the law. The mannerisms and the body languages of the MCAs hints at a possibility of them being compromised to have her leave office at all costs.

Related Content:  Riverside Suicide Bomber Was Recruited At Masjid Musa Mosque And The Tactical Error He Made That Saved Many Lives

We’re now calling for a full lifestyle audit on all members of the county board and the entire assembly, we’d like to know if true and why for instance, Waithaka MCA Anthony Kiragu has made many foreign trips than any member and his purposes for such trips. We’d like to find out if it’s true that Kiragu and Warutere took Sh2m bribes each from the Asian businessman who was later to be arrested for trying to bribe governor Sonko not to have his hotel demolished.

We’d like to know why Guyo is driving a County Assembly’s car using private number plate for his own personal purposes and why Ngwele and team even have chase cars yet only the speaker should have such, we’re told she doesn’t use the chase cars. Why is there sustained pressure to have Ngwele’s cases withdrawn?

We’re therefore requesting DPP Noordin Haji to dive deeply into the City Hall corruption and prosecute fearlessly. The board members should step aside and a lifestyle audit and thorough investigations into their finances be conducted. Individual MCAs need to be audited too which means the entire assembly should be recalled.

President Uhuru should also strike his authority as forces of impunity rocks City Hall. From the initial picture, it seems the speaker has been left alone to fight the cartels yet this should be an all inclusive agenda. The President and the Governor need to pay attention and resolve this before coffers are dried and lives lost. Kenya Insights is following the case and more explosive details shall be trickling.


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on [email protected] or via Telegram
Continue Reading
Advertisement

Investigations

Shadowy Billionaire Humphrey Kariuki Is On The Run Over Sh3Billion Monthly Tax Evasion And Massive Fraud

Published

on

Businessman Humphrey Kariuki.

Kenya’s leading alcoholic spirits manufacturer Africa Spirits Limited (ASL) is on the spot following a raid conducted by DCI and Kenya Revenue Authority officers. The joint raid that was conducted at the company’s factory in Thika was headed by the head of Flying Squad Musa Yego in conjunction with senior officials from KRA.

Investigators from KRA and DCI during the raid seized around 21 million counterfeit excise stamps and 312,000 litres of suspected illicit ethanol with an estimated tax potential of Sh. 3billion monthly at Africa Spirits factory in Thika, in an operation that commenced on 31st January 2019.

Yego said they conducted the raid following a tip-off. He added they were also investigating possibility of production of sub-standard alcohol in the factory. “We have arrested three employees who would be arraigned in court. We are also looking for the owner of the company,” said Yego. Ann Iringu a deputy commissioner at KRA said the raid was geared towards fighting illicit trade. Iringu said they were also investigating to see if the company conforms to taxation laws.

She added they had also confiscated some of KRA stamps.“We will also carry out investigations to ascertain if ethanol that has been confiscated here is illicit and if alcohol production going on in the factory is illegal,” said Ms Ngugi. The KRA official said ongoing investigations which will take about a week will reveal if the company has been evading tax and to what extent. She appealed to KRA officials at the country’s border points to be vigilant in order to ensure no illegal goods get access to the Kenyan market.

Related Content:  The Evil Kenyan Gospel Music Industry Cartel

Established in 2004, African Sprit Limited has been instrumental in shaping the local alcohol beverage market, with its brands leading various segments of Brandy, Gin and Vodka.

Some of it products include Legend Gold Brandy, Blue moon Vodka, Blue Moon Vodka flavors (Apple, Mango & Ginger), Gypsy King Gin and The Furaha Range among others.

African Spirit Limited is owned by shadowy Billionaire Humphrey Kariuki who has been implicated in other scandals including drug trafficking even though the courts recently cleared his name of the accusations. Kariuki who co owns empire with Harun Mwau are said to be falling apart after a 40 year partnership.

The two were named in the drug cartel. Amongst their known businesses includes The Hub an upmarket mall in Karen, Mount Kenya Safari Club In Nanyuki, Wines of the world amongst many others that we shall mention in our subsequent series in exposing a long history of fraud including Kariuki’s Involvement in South Sudan war where his oil company was involved in looting the funds and fueling the escalating war.

Last year, the government scuttled Wine of the World Beverages bid to exclusively import and distribute exotic wine and spirit brands from seven international suppliers to avert a monopoly.

In a statement, the Competition Authority of Kenya said the company’s exclusive distributorship agreements with the distributors would have seen it dominate the market and lock out rivals at the expense of consumers.

His roots in South Sudan is so deep that Salva Kirr spends at his opulent Dik Dik Gardens, Kileleshwa home. Kiir In a report by Sentry was named amongst South Sudan’s leaders use the country’s oil wealth to get rich and terrorize civilians.

Related Content:  How Western Countries Including Israel Contribute to Kenya's Killer Squad and Extra Judicial Killings


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on [email protected] or via Telegram
Continue Reading

Investigations

‪DCI Recommends Charges Against Five Local Banks Over Involvement In The NYS II Heist As DPP Haji Forms Team To Review Files‬

Published

on

DPP Noordin Haji.

Trouble looms for banks and officials who were involved in the illegal NYS II transactions a scandal that saw Sh8B embezzled. DPP Noordin has issued a statement on the progress following investigations on the marked banks by the DCI.

DCI investigations as directed by the DPP on the criminal culpability has found five banks liable; Standard Chartered, KCB, Equity,Co-Op bank and DTB all have a case to answer. The banks violated restrictions that govern banks in Kenya by facilitating flow of proceeds from crime and money laundering.

Investigations established that the Standard Chartered Bank received a total of Sh.1,628,902,000 between January 2016 and April 2018 out of which Sh.588,558,000 was suspiciously transacted by bank’ Officials without reporting to the Financial Reporting Center as opposed to the POCAMLA regulations.

KCB according to the investigations had received Sh800M of which Sh148,397,000 was suspiciously transacted by bank officials without sticking to the POCAMLA regulations.

Equity Bank received Sh.886,426,904 and that Sh264,200,000 and USD58,000 was transacted without adherence to the regulations.

Diamond Trust Bank which is currently under prove over involvement in helping Dusit terrorists launder their money for the attack, is in the frying pan as well. Investigations reveal that, the bank had received Sh.164M out of which Sh27,946,298 went without being captured by the regulatory board.

Co-Op Bank received Sh.250M and suspiciously transacted Sh.25M without reporting. DPP has since constituted a team of senior prosecutors who’ll review the files and give recommendations in the next two weeks.

DTB had been fined Sh56 million by CBK while Co-operative Bank will pay Sh20 million. The five banks handled a total of Sh3.5 billion from NYS with StanChart handling the largest transaction worth Sh1.6 billion followed by Equity Bank at Sh886 million, while KCBprocesses Sh639 million. The same banks involved in the NYS I are also the ones being chopped over NYS II. It seems the fines never worked so the punishment this time should even be heavier.

Related Content:  The Evil Kenyan Gospel Music Industry Cartel


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on [email protected] or via Telegram
Continue Reading

Investigations

How Gulf African Bank Conspired To Defraud A Client His Sh500M Property In An Insider Mortgage Fraud Scheme

Published

on

Gulf African Bank managing director, Abdallah Abdulkhalik.

In March 2009, SAX Limited had sought a loan from Gulf Bank to buy two aircrafts and related equipment. Mohamud Sheikh Hussein offered his property L.R No. Eastleigh 36/11/1 as the guarantor. By then, his property was worth Sh160M and has since gone up. For him it was just another of many bank engagements but unknown to him, it would end up in a decade long fight to regain full control of his suit property.

In April, 2009, Gulf Bank after reviewing the securities, agreed to advance a Murabaha Asset Finance Facility To SAC Ltd as the borrower Sh95M. This amount would be used in purchasing a used Aircraft Beechcraft Baron 95-E55,5Y-BPC at a cost of Sh11,200,000. A 5 tonne, Sideley HS478 Aircraft From Track Mark Ltd at Sh80M and Sh2.9M to purchase propellers.

The Sh160M property of Mohamud was to guarantee for Sh120M with SAC directors guaranteeing Sh94M but the registration was to remain jointly in the name of the bank and the company SAC. The terms for this MURABAHA facility was that profit and not interest would be charged at 16.5% of the facility.

That was a deal sealed and so Mohamud thought his work was finished. Things started making twists on 4th May barely weeks after SAC was advanced the principal amount of Sh95M. Gulf issued SAC with a second letter of offer varying the terms of the MURABAHA facility and this would translate into review of security terms for the mortgage. In a offer letter dated 4th May 2008, now the security property as the first ranking had a legal charge of  Sh95M, Mohamud switched to guarantee Sh95M.

In a letter of offer dated 4th November 2009 and seen by Kenya Insights, a second Murabaha stock finance was advanced to SAC the borrower for the sum of Sh15M. This amount was over and above the sums secured by the initial mortgage dated 9th September according to court papers.

Now here’s the point Fraud started playing, this second facility of Sh15M was given by the bank to SAC using Mohamud’s knowledge and consent as the guarantor and so the Murabaha facility wasn’t secured by the initial mortgage according to a court of appeal ruling on this case.

Gulf representatives liaised with SAC, reviewed the terms of mortgage while using the guarantor’s property, went ahead and issued another facility of Sh15M without his consent just to make the open breach clearer. The varied terms of repayment of the loan facility were of no effect and as a result, Mohamud was discharged from his obligation. Gulf unlawfully accommodated SAC the borrower and varied his terms of payment.

Related Content:  EACC Planning To Raid Migori Governor’s Obado Money Warehouse In Migori Where Sh5B Is Hidden In Cash

Having been fully discharged by the bank as a guarantor, there was no way in law the bank would reviver any amount on the second facility from Mohamud but from SAC the principal borrower. To affirm this in a demand letter dated 26th April 2010, in admission to this fact, wrote to SAC seeking the payment of the second facility. Mohamud wasn’t copied since he had been fully discharged by the bank as the guarantor on the principal amount.

In June 24th 2010 according to court documents, Gulf confirmed that SAC had fully settled the Murabaha loan facility which was done by the insurers on payment of the insurance of $370,000.

It didn’t end there, SAC(borrower) went ahead and sought a third facility(Tawarraq Working Capital Finance) Of Sh58,672,978 which was to be repayable in 24 months. Once again, Mohamud’s Eastleigh property without his knowledge and consent, was used to guarantee this third and illegal loan facility which wasn’t registered against his property according to court papers.

SAC the principal borrower defaulted in the payment of the third facility and Gulf sent him a demand letter dated 19th November 2010 seeking the settlement of arrears of Sh4,174,525.31. This letter wasn’t copied to Mohamud in tacit admission by the bank that Mohamud wasn’t liable as the guarantor.

Despite of all the accusations of playing dirty, the bank insisted that Mohamud was aware of the variations and approved them contradicting their body language. They never engaged him at any point after inking the initial mortgage facility.

In a sharp twist by a letter dated 26th January 2011, a firm Mohamed Muigai Advocates purported to issue a three months statutory notice on behalf of the bank seeking payment of Sh67,078,541.08. Here’s where the real games started playing.

SAC as the principal borrower informed Mohamed Muigai firm that the bank had waived the purported statutory notice by accepting payment and rescheduling proposal. By this, SAC admitted to liability as the principal borrower and the numerous proposals for settlement.

Despite all the breaches of all standard banking precepts, Gulf Bank purported to restructure the loan facility to make Mohamud who was the guarantor to make him the principal borrower. This, Mohamud says in court letters that it was illegal,l and vitiated by Fraud, duress and coercion so as to constitute an unconscionable bargain in law.

Related Content:  The Evil Kenyan Gospel Music Industry Cartel

In play, the security documentation and letters were all drafted by the Gulf’s legal department and Mohamud wasn’t allowed the privilege of independent legal advice on the implications of signing the letter of offer dated 26th May 2011 in what he says the bank unlawfully coerced and duped him by purporting to restructure the loan facility and waive its exercise of statutory power of sale while in law, the bank didn’t have any statutory power of sale.

It doesn’t make sense that the bank purportedly made Mohamud the principal borrower yet there wasn’t consideration for the diminishing Musharaka sale and lease back Finance facility and not a single cent has been disbursed to Mohamud.

Worth noting that the bank had initially discharged Mohamud as the guarantor when it rescheduled the facilities in favore of SAC the principal borrower. For a fact, Gulf Bank has forwarded Mohamud a re-conveyance Of mortgage confirming that all the money secured under the mortgage of Sh95M the principal amount that is the only one he approved to had been fully paid.

Reconveyance of mortgage forwarded by the bank to Mohamud clearing him.

Amina Bashir, the Then Bank’ Company Secretary and Head of Legal Department is a key person of interest in this ploy. According to court documents seen by Kenya Insights, Amina drew agreements dated 26th May 2011 and purchase agreement dated 30th June 2011 in which she made Mohamud liable for payment of Sh68,455,295.08. In this reversal of roles, Amina purported to make Mohamud the principal borrower (SAC) now the guarantor to Mohamud when in fact no facility was advanced to him.

The Sh68.4M that now the bank was putting on Mohamud, Musharak Asset Purchase Agreement that Mohamud alleges he was duped and coarced into signing is described as a clear fraud on his side to enable the bank sale his property. Simple question that the bank need to answer is if Mohamud was a principal borrower as they purport then where’s the proof that he was paid? None as it never happened.

September 4th 2012, SAC the principal borrower in admission through a letter, confirmed it owed the bank the Sh68,455,295.08 that the bank purported to have been borrowed by Mohamud in their reversal roles theatrics. This debt according to court documents is fictitious and fraud that can’t be basis of any valid statutory notice.

Related Content:  How Western Countries Including Israel Contribute to Kenya's Killer Squad and Extra Judicial Killings

In arguing their case to hold the statutory notice, Gulf Bank lies to the Court of Appeal by not disclosing that they had registered a re-conveyance of mortgage dated 8th August 2011 on 18th 2011 and there wasn’t mortgage in force.

The Chief Land Registrar confirmed that the last entry on the file was the re-conveyance of mortgage confirming that the property is fully and legally under Mohamud and held no debt, keep in mind the bank has cleared him of the loan.


With everything working against them and all factors exposing this clear fraud, Gulf Bank has served Mohamud with a notice of sale by public auction by Garam Investments on 17th Dec in respect of his Eastleigh property that he used to guarantee a loan and which the bank had cleared him of. The property would be auctioned on 19th February 2019 despite there being no mortgage registered against the property, non whatsoever

Following the sustained efforts to illegally acquire and sell his property, Mohamud has since published a Caveat Emptor Buyer Beware on local dailies warning the public against being duped into the purported public auctioning of his Eastleigh property.

PUBLIC NOTICE!

At Kenya Insights, we’re just opening a case which we believe if it’s the norm, then there could be many  frustrated customers like Mohamud. We’re asking members of public who might have fallen prey to such mannerisms of coercion and duping to write to us with solid proof on either Gulf Bank or any financial institution, we will highlight. Our email is below this post.

As for Gulf Bank, we’ve picked this case and will be going into much deeper details in subsequent series, how a bank turned against a guarantor is a reason to worry many other potential or existing guarantors to their facilities. What does the bank know that Mohamud or the courts doesn’t know? Why is the bank withholding Mohamud’s land documents despite having cleared him of any debt? Why did Amina Bashir change the loans agreements along the way without consent of the guarantor? What’s the level of BODs involvement in this scheme? Series continues…


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on [email protected] or via Telegram
Continue Reading
Advertisement

Most Popular