The Pyrethrum Board of Kenya Managing Director Paul Lolwerikoi has been arrested by the Ethics and Anti-Corruption Commission (EACC) over alleged economic crimes and other procurement irregularities.
“The Pyrethrum Processing Company of Kenya (PPCK) acting MD is in police custody. He was arrested over economic crimes and other procurement irregularities,”EACC Spokesperson Yasin Amaro has confirmed.
A recent Auditor–General report for 2017/2018 financial year indicates that PPCK paid Sh20 million to casual workers for work not done. Investigations in the graft infested firms then started in March 2018 after anti-corruption watchdog detectives raided the private homes and offices of top officials from PPCK over suspected graft.
The EACC had descended on MD Paul Lolwerikoi’s residence and the PPCK’s headquarters in Nakuru town, confiscating documents suspected to be related to corrupt activities at the State-owned firm.
Under investigations is rent collected from property owned by PCCK. Allegedly out of Sh2 million collected every month, only Sh247,000 could be accounted for. The watchdog also looked into Ksh20 million paid to casual workers for work not done, the Ksh20 million was allocated for establishment of a pyrethrum seedling nursery in Samburu County, which was never put up.
How Some Ksh144 million released by the government last year to settle salary arrears and statutory deductions for workers was used is also suspect.
The MD has also been at the centre of controversy after PPCK approved sale of trees at the PPCK-owned farm in Oljoroorok in Nyandarua County.
“This company has gone under because one man has the powers to decide on behalf of farmers and this has delayed the revival process,” said Pyrethrum Growers Association national chairman Justus Monda in a past interview. The PGA wants the government to appoint a board of directors to run the company.
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