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KBC – PWC Conspiracy: Ruto’s 2022 Plan

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KBC Head Office in Nairobi.

Fresh from its disgraceful failure to obtain rights to the Gold Coast 2018 Commonwealth Games (Australia) and the ongoing Russia 2018 World Cup, the management at the Kenya Broadcasting Corporation, appears set to reward Company Secretary and acting MD Paul Jilani by manipulating the recruitment process for the broadcaster’s Managing Director post advertised in May.  

Information leaked to the Weekly Citizen, reveals a scheme to undercut all top candidates in the current recruitment of a new MD. The post was left vacant when Waithaka Waihenya left the media house in October 2017 and was replaced by company secretary Paul Jilani in an acting capacity.

The management consulting recruitment process was awarded to scandal prone audit firm PricewaterhouseCooper. PWC as they are known, have in the last two years received bans in Japan, India, New Yorkfor manipulating information in collusion with various managers of firms they are contracted to audit.

According to the whistleblower who works at PWC, the process of recruitment for a new KBC Managing Director stopped being objective after the KBC Board led by Kennedy Imbwaya forced a 3 day extension to the Friday 25th May 2018 deadline earlier advertised.

“Once the deadline was extended to May 27th which is a Sunday, the backhand games began. It provided the window to isolate the strong candidates for undercutting and also open the back door for the board’s favourite candidate –Jilani. Inside PWC it is so obvious that this guy did not even rank within the top 5 candidates with regard to the experience and capacity we were looking for

The shock announcement on 8th June that dismissed Sammy Itemere, as Principal Secretary Broadcasting & Telecommunications among 15 others, left the process without a clear hand to enforce the rules.

ICT Cabinet Secretary Joseph Mucheru

The KBC Board and MD appear to have seen the vacuum as an open chance to manipulate the process and issue “shortlisted” names directly to the ICT Cabinet Secretary Joseph Mucheru, without the due diligence scrutiny that would have been provided by the Broadcast PS. The process entails the board shortlisting, interviewing and presenting 3 names to the Broadcast PS who after scrutiny of process would present them to the Cabinet Secretary to make the final appointment.

Those in the know confide the current shenanigans are not really about Jilani but focused on having a person friendly to the Ruto 2022 Campaign. According to our source, Ruto’s camp is shopping for media outfits to enhance its 2022 campaign communications. Having elevated key allyFarida Karoney into the cabinet as Lands CS, the campaign team is concerned on their diminished influence at Royal Media Services where Karoney as COO gave the DP unfettered access to prime time TV.

Alongside the change of guard at Royal Media, the team has little influence at the Standard Group (owned by a hostile Moi Family) and the Nation Media Group (Controlled by pro Uhuru businessmen and partially the Kenyatta Family who recently bought a stake). While the DP bought 10% Mediamax which owns K24 TV, Kameme and the People newspaper, its influence and market share does not give him the controlling media presence he requires towards his 2022 Presidential bid.

As such, government funded KBC becomes a critical instrument to reach the grassroots and soften the 2022 battlegrounds. 

Ruto was recently reported to have also expanded his media empire by acquiring Xtra Publishing Ltd that will see the revival of XNews as a 42-page national free sheet newspaper. A TV station is also planned.

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However, it is the ease with which the KBC scheme was executed that shows evidence of how seriously Ruto’s camp is exploiting gaps within the Jubilee administrationfor strengthen his bid.

According to the insider, with PS Itemere slated to leave on June 30, pressure was put on PWC to massage the shortlisting and make Jilani the front runner.

“We had to eliminate the strong candidates and put weak ones alongside their chosen candidate. The KBC Board and the MD promised our firm 3 years worth of auditing business in return for the manipulation”

According to a HR source inside KBC, a plan was hatched to conduct hurried interviews within days of producing the manipulated shortlist. The interviews of Jilani and the competing weak finalists were done without informing other applicants of their unsuccessful bids.

“The plan is to have Jilani appointed MD before the President appoints a new Broadcasting & Telecommunications Principal Secretary to replace Itemere. They know this guy can’t be picked ahead of the other candidates

DP William Ruto.

Moving the KBC Board to stealthily deploy a compliant MD is testimony of how well placed the DP’s allies are. Most people have little knowledge that Ms Farida Karoney who was recently appointed Lands CS still retains her seat on the KBC Board of Directors, having been appointed for a 3 year term in 2015 while still a manager at Royal Media.

It is possible the scheme may succeed as industry insiders allege CS Joe Mucheru practices a hands-off approach when it comes to the broadcasting side of his ministry and may not be familiar with the widespread financial and ethical mismanagement of what was once a shining institution.

A former senior manager at KBC now with rival Royal Media Services is convinced KBC is headed for potential collapse.

“The place lacks vision and no one is responsible for anything. No one gets fired for anything. At the helm of KBC is nothing but pure incompetence. KBC is on auto pilot and on its knees. Other than keeping their jobs, the current management appears to have given up any effort for meaningful change. It is almost impossible to figure out what KBC as an institution was actually founded to do”

By allowing Jilani and the KBC Board to “karate kid sweep from under all the professionals willing to serve and offer value to KBC, PWC appears determined to emulate its other world branches who trade off professional ethics and sometimes engage in fraudulent behavior to obtain contracts from private and public institutions.

PWC building located along the Waiyaki way.

In January this year, PwC’s Indian unit was banned from auditing listed companies for two years, over one of the country’s biggest corporate scandals. Price Waterhouse was auditor for Satyam computers when company owner Ramalinga Raju admitted to inflating earnings in a $1.7bn (KShs 170 billion) fraud. The collapse of Satyam Computers in 2009 cost shareholders more than $2bn and rocked India’s IT industry.

In 2015, Kenyan accountants’ professional watchdog ICPAK investigated PWC Kenya as an accomplice to a Ksh 879.1 million accounting fraud at Chris Kirubi’s Haco Tiger Brands. Investigators questioned how PWC could have failed to detect the huge and illegal financial adjustments. PwC was Haco’s external auditor.

In 2017, PwC was cited in an (IRBA) investigation for its failure to disclose SA Airways (SAA) procurement failures while auditing its accounts . Still in South Africa, PwC had to pay KShs 1.5 billion to shareholders of looted Randgold & Exploration, a mining company for not disclosing auditing discrepancies that led to the collapse of the company.

A few years ago, PWC was fined $25m (KShs 2.5 billion) and banned from some consulting work for two years by New York State’s financial regulator because of misconduct during work at Bank of Tokyo-Mitsubishi.According to authorities, PWC secretly softened details of an oversight report about the bank it was assigned to monitor.

“When bank executives pressure a consultant (PWC) to whitewash a supposedly ‘objective’ report to regulators — and the consultant goes along with it — that can strike at the very heart of our system of prudential oversight,” Director Financial Services Superintendent Ben Lawsky said in a statement.

Hopefully EACC and ICT CS Joe Mucheru will intervene and nip this unfolding corporate schemes fraud that will sound a death knell to the little professionalism that remains at KBC, an institution that has birthed thousands of iconic broadcast figures.

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Investigations

How Flying Squad Trailed And Arrested Police Officers Who Raided A Malian Citizen’s Home In Kilimani Stealing USD 8,000 In Cash

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Flying Squad officers have arrested one police officer & are in pursuit of others following a report made by one Bathily Abdoulaye, a Mali national, who had reported that on 15/09/2018 four police officers from Nrb Area command came to his Kilimani residence and arrested him.

In the process of the arrest the officers ransacked his house and took the following items: 8,000 US Dollars,Ksh.83,000, 3 Rolex watches each valued at 15,000 US Dollars, his passport and also transferred Ksh.30,000 from his Mobile phone number to another Mobile phone number.

The complainant was then escorted to Central Police Station where he was later released without being officially booked in the Occurrence Book. Thereafter, the same officers still continued demanding from him an additional 8,000 US Dollars which prompted him to report the DCI.

Flying Squad  officers laid an ambush at Yaya center where the money was supposed to be delivered & in the process managed to arrest one suspect namely Moses Njogu Njagi who led officers to Central Police Station where No.88724 PC Kelvin Ndosi of DCI Central was arrested.

The passport of the complainant was recovered from the arrested officer. The Flying Squad is still looking for the other rogue officers including one driver attached to the County Criminal Investigations Officer,Nairobi Area.

Cases Of Police Officers engaging in criminal acts are not new in the city and this just adding to the pile of many cases. With the purge on illegal immigrants, rogue officers have taken advantage and many foreigners are complaining about harassment.

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Investigations

Britania Foods Ltd CEO Robert Kagundah’s Days At Britania Numbered As Sales Director Shown The Door

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Britania Foods CEO sampling out some of the company’s products.

Mr Robert Kagundah, a former Coca Cola executive, was appointed to take charge of the business now renamed Britania Foods Ltd after acquisition from Manji foods by Catalyst Principal Partners and for Manji Foods, previously House of Manji, is Kenya’s market leader in the biscuits category with a market share of 27 per cent in 2016, according to data from research firm Euromonitor, it was a good gamble for the investors, however, that hasn’t been the case.

Britania has been making losses and notice to the CEO to restructure the company to profitable heights has hit a dead end with steady losses that now rolls.

Britania Foods Limited workers have accused the top management of irregularly running the company that was in 2017 acquired by Nairobi-based private equity firm Catalyst Principal Partners.

All is not well at Britannia Foods Limited following allegations that workers have been turned into slaves with sexual exploits being at the centre of management.

Currently in hands of private equity firm, Catalyst Principal Partners, all eyes are on chief executive, Robert Kagundah popularly known as RK on whom all eyes are focused. Not left out is Elijah Maina, the sales director of the firm. The duo is alleged that in order to satisfy their social urge, they award contracts and employment opportunities to females they befriend.

Kagundah out of the blue, awarded a catering and cake supply contract to Civa Cakes, associated to Cynthia Orenge. The said Orenge has introduced a lady by the name Charity Muema to Maina and her firm CM commodity suppliers is to land a major wheat supply deal running into millions of shillings.

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Kagundah met Ms Orenge at Karen Country Club. She was sacked at the club after she was found in a compromising position inside Kagundah’s car at the parking.

At Britannia, Kagundah manipulated a Somali tycoon, a one Mohammed and acquired a Mercedes Benz registration number KCD 227B. Mohammed had supplied the company with a number of Toyota Fielder cars for the sales department.

Britania is fully owned by Catalyst Principal Partners after being purchased in early 2017 from the Dawda family. Our sources indicate that cooked books may have been used to dupe Catalyst into buying the loss-making company.

By the time Catalyst found out, it was too late. CEO Robert Kagundah and his sales manager, happen to be best friends, forming an axis of acute corruption that no one at the company can stand up to.

The plan involves working in cahoots with distributors, to dupe the board and management that they are meeting sales targets.

A distributor would for example order biscuits worth Ksh 10 million, and Elijah and his team would report that figure has been met, regardless of whether the distributor sells or not. The distributor would then return back the stock after about three months, very close to the expiry date.

Britania hence ends up losing tens of millions every quarter, and rumors are that Kagundah is paid handsome amounts in kickbacks together with Sales Director Elijah Maina.

Catalyst has since sacked the sales director over non performance and the steady loss making. This can be seen as a blow to the CEO who has now lost s confidant. Britania would be keen to get its brand on straight line by doing away with scandalous characters in its management and more so have performers as opposed to mediocres.

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Investigations

Thigh Pain That Killed A Three Year Old Girl In The Theatre At Kenyatta Hospital Parents Say It Was Doctors Negligence

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Peninah Kadogo, the deceased.

On a normal day on Monday, Penina Kadogo after a long day playing, complained to her father, Mathew Kitito about pain in his leg, “Baba naskia uchungu kwa mguu.” The father recalls. He had assumed this was probably a minor injury incurred during their plays with peers during the day. Unknown to him, this would be the start of a short, sad journey and the end of him seeing his daughter alive.

As a precaution, he opted to take her to the hospital for a quick bone check up. Talking to Kenya Insights, the father says a Dr. Tende at Kenyatta National Hospital checked and recommended for an X-ray, ultrasound checks. He was also referred to a bone diseases specialist a Mr. Ndeda.

After tests And deliberations, it was decided for the kid to be taken for operation to sort out the pain on her thighs on Tuesday. As required, she was put on medication and denied food as a patient preparation standard before surgery.

While she was booked for surgery on Tuesday, this never became the case and it was pushed till Thursday. According to the father, the three year old didn’t eat anything from Tuesday when the doctors had scheduled the operation till Thursday when she was taken to the theatre.

Mathew was hesitant about having the surgery done at Kenyatta but he was convinced that it was the best place to have it done given it being the biggest hospital. He had suggested taking her to a private hospital. In his own view, he wasn’t convinced the minor case warranted an operation.

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On Thursday at 11am, Peninah was finally taken to the theatre and once again, things would go down the drain from this point. Minutes turned to hours of waiting, uncertainty and anxiety was killing the parents on the other end. At 3pm that is five hours after she was checked in for the minor operation, the mother was called from the ward to take her daughter, by then, they had finished, so they thought.

When her mother, Joanne Atieno took her up, she felt something unusual, she was struggling to breath and at this point the doctors must have realized they made a mistake and then took her away from the mother who was then instructed to leave. This would be the last time she held her in her arms alive.

Peninah took her last breath minutes after, she was registered dead at 3.05pm. Mathew was then called to the hospital at 7pm where they broke to him the bad news.

Dissatisfied with everything, the father is convinced the death has been caused by doctors negligence and according to an uncle Chabuga Evans who’s taking the lead in seeking answers, Peninah was given anesthesia overload and that’s what resulted in the hard breathing. They claim she was taken out of the surgery before full recovery and the doctors didn’t factor in precautionary measures to keep the baby alive.

Narrating his story, the disturbed father is pointing all fingers at the hospital. “This was a minor case that shouldn’t have resulted in the death of my daughter, I’m mad, sad, friends and family are falling and I can’t explain to them what exactly happened.” Our interview pauses as he breaks into tears.

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The uncle Chabuga took over making their pointers clear that from Tuesday to Thursday the kid wasn’t given food and was taken to the theatre while too weak. They’re questioning why the doctors didn’t consider the physical stability before taking her for surgery.

Getting answers from the management has become a challenge, the family says. The body is at the hospital’s mortuary and they’re sourcing for independent pathologist to ascertain cause of death. They read dishonesty that the body has already been treated which the claim can possibly wash away crucial clues to find cause of death.

However, the resident pathologists are giving assurances that this wouldn’t be an issue as autopsy will show the exact cause. They’re determined to take the matter to all heights to get justice for the kid. They’ve raised an eyebrow as to why the final report was written by a different doctor from the ones who handled the patient. They’ve been advised to seek answers from the management.

Kenyatta Hospital continues to struggle with systematic failures which this site has been highlighting and are never addressed. General understaffing, underfunding and overcrowding remains the biggest challenges that are yet to be addressed making it prone to such errors which can be avoided.

As this family seeks justice for their daughter, another disaster is waiting to happen, the more things change, the more they remain the same. We’re yet to move on from the incident where a wrong patient had his skull opened and now this and so many unreported cases.

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Employ more doctors and staff, thevfew available are overworked, demoralized and proneness to mistakes increased, allocate more funds and ensure the projects are implemented to improve the facilities at KNH, we can’t have a national referral hospital running on colonial equipments. Decongest KNH by ensuring other public hospitals are working perfectly, this hospital should only be for complex issues as it should be not for treating minor cases like fever.

The hospital must give answers to the family of the deceased and ensure justice by taking actions against any deliberate negligence if any that might have resulted in the death of the three year old girl.


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
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