Kenya Insights

Tag: Treasury

  • Treasury Disowns Corrupt Manduku In Sh2.7 Billion Case

    Treasury Disowns Corrupt Manduku In Sh2.7 Billion Case

    Ukir Yattani led National Treasury has said the expenditure was made without its authorisation leaving the corrupt KPA Boss Daniel Manduku on the frying pan in the fraudulent tenders worth Sh2.7 billion.

    In a letter dated November 22, 2019, the Treasury says the money was spent before approval of the supplementary budget.

    “The Cabinet secretary Ministry of Transport and Infrastructure was to grant approval for the request and subsequently seek the concurrence of the National Treasury … there was no prior approval for Kenya Ports Authority management to procure … before approval of supplementary budget 2018/19 FY,” Principal Secretary Julius Muia says in the letter.

    In a case that will be heard later on today,  Tuesday 3rd, KPA Managing Director Daniel Manduku has moved to the High Court seeking anticipatory bail. Manduku also wants the court to dismiss DCI probe terming them as unlawful and illegal.

    Manduku says that DCI has overstepped its mandate by investigating matters that should be investigated by EACC and wants the court to stop the DPP from bringing charges against him based on an investigative report and recommendations by the DCI. Justice Erick Ogola of the High Court in Mombasa will rule on the matter today.

    The KPA officials had in a letter dated January 30, 2019 sought the approval of Treasury to shift Sh2.5 billion of the Sh3 billion previously set aside for buying a piece of land at the Inland Container Depot in Nairobi and use Sh500 million to concrete the Makongeni yard and Sh2 billion for dredging the port.

    Dr Muia said that the budget was subjected to rationalisation and a recommendation for approval was only given on September 24, 2019. By this time, Dr Manduku had already awarded the tenders and paid for the Makongeni works. This was done without knowledge of the Treasury.

    Audit records indicated that nine contractors were given the tender. The tender was split in smaller portions to duck legal requirements for tendering for capital projects. The corrupt Maduku—who has links with DP Ruto awarded  his crony contractors the tender masked as repair works.

     

  • Ghost Workers Exorcised, Treasury CS Admits

    Ghost Workers Exorcised, Treasury CS Admits

    In September 2014, a biometric exercise was conducted to determine the official number of employees included in the government’s payroll list after an audit report poked holes. The government was spending Sh1.8 billion annually in salary payments to ghost workers.

    Uhuru Kenyatta presided a cabinet meeting with officials of the Anti-Banking Fraud Unit, DCI, EACC to launch an investigation regarding the ghost worker scandal at that time, Anne Waiguru was the Devolution Cabinet Secretary announced that over 12,500 individuals who didn’t show up for the biometrics exercise were expunged from government’s payroll list.

    “Cabinet directed the immediate investigations following revelations in the just-concluded Human Resource Audit, under the Capacity Assessment and Rationalisation in the Public Service (CARPS) programe, that there were in excess of 12,000 staff who were unaccounted for at conclusion of the exercise,” the government said in a press statement that time.

    And earlier today, the Treasury CS Ukur Yattani announced that ghost workers have returned to the national payroll. How? Well, perhaps, they were never expunged even after the then CS Waiguru announcing that more than 12,000 had been purged.

    Acting Treasury Secretary Ukur Yatani stated that weak payroll systems at both county and national government levels had made it easier to manipulate the payroll to include ghost State employees.

    “There is a problem with weak payroll management systems. A number of payrolls are still populated with ghost workers earning money from the Exchequer and yet they cannot be found,” Mr Yatani said yesterday at a press conference in Nairobi.

    According to a preliminary audit by the retired Auditor General Edward Ouko, majority of the government ministries, State-owned agencies, and commissions that employ large numbers of staff and are losing millions as salaries of ghost workers.

    Which counties and public agencies are these that are hiring? The only people I have been seeing get employed in this Uhurunomics are the aged. The President is appointing nonagenarians who have, by age, naturally lost their senses and memory! The government said is freezing new hiring, how do you freeze something that isn’t there?

    “Right now we have so many public servants who can’t give you their job description. Playing second fiddle to productivity has to stop,” said SRC vice-chairperson Dalmas Otieno.

    In 2014, Kenya had 732,000 employees. Today, Kenya has an estimated workforce of 842,000 including the civil service, teachers, parastatal employees, and State-owned companies employees.

     

     

  • Taxpayers To Lose Sh38 Billion In Stalled Dam Projects

    Taxpayers To Lose Sh38 Billion In Stalled Dam Projects

    The National Assembly Committee on Environment has stated that sh38.4 Billion that the government made in advance payments of five stalled and collapsed dam projects cannot be recouped.

    According to the committee, the construction of the five dams has either yet to start, sluggish development, stalled altogether or their contracts have been terminated.

    The records indicate that the following dam projects have received these advance payments;

    Itare Dam got Sh4.2 billion, Karimenu II dam received Sh4 billion, Badasa Sh2 billion, Umaa Dam Sh1.6 billion and Thwake Multi-Purpose Dam has received Sh7.4 billion.

    The Committee has also raised concerns regarding the ongoing construction of Chemususu Dam and the Northern Collector Tunnel.

    Kimwarer and Arror dams that the Treasury made advance payments of Sh19 billion, that led to the prosecution of suspended Treasury Secretary Henry Rotich, including Sh11 billion debt insurance, Sh4.6 billion as loan interest and other costs were not part of the Environment Committee’s report.

    “The Auditor-General should institute a performance audit to inquire into the circumstances under which Athi Water Works Development Agency made the Sh4 billion advance payments to Chinese firm AVIC before acquisition of the requisite land for implementation of the Karimenu II Dam, leading to loss of public funds through idle time,” Kareke Mbiuki, who chairs the committee, said in the report on the Inquiry into the Status of Dams in Kenya.

    The committee has also asked the government to urgently engage the Italian firm, CMC Di Ravenna, to secure a subcontractor to complete the Sh28.9 billion Itare Dam project since the main contractor filed for bankruptcy in Italy.

    “This will save the project from permanently stalling. There is urgent need to renegotiate the terms of the loan to allow for a subcontractor to complete the project,” Mr Mbiuki said The committee said the broke Italian contractor had raised bills totalling Sh4 billion at the time of filing the report on October 11.

    The committee also wants the Water and Irrigation ministry to closely watch China Ghezuoba, the main contractor in the Sh36.7 billion Thwake Multi-Purpose dam.

    According to the committee, work progress at Thwake dam meant for hydro generation, irrigation and providing water for domestic use is sluggish yet the Chinese contractor has already received sh7.4 billion.

    Thwake project is fully Chinese owned as the report noted that it is handled supervised by Chinese contractors. No local professional has been included in the senior positions nor in the oversight of the project.

    In January 2018, China’s AVIC ventures received Sh4 billion to construct sh26.8 billion Karimenu II dam. On the ground, there is zero of work recorded after 2 years.

    In the Sh6.8 billion World Bank-backed Northern Collector Tunnel, the MPs want the Auditor-General to conduct a special audit of the Kigoro Water Treatment Plant that cost the taxpayer an additional Sh4.5 billion.

    “The auditor should establish if indeed the country realised value for money and report to Parliament within six months from the date of adoption of the report.”

    China’s Sino Hydro Corporation was awarded a contract to construct sh14 billion Mwache Dam. They valued the land at the site at sh1.8 million per acre yet they are paying land and property owners Sh550K. The committee has proposed to block any advance payment to the firm.

    The committee established that taxpayers lost Sh1.6 billion through an arbitral award to a contractor after terminating the Umaa Dam contract.

    Taxpayers also lost Sh2.4 billion in the government-funded Sh3.3 billion Badasa dam. The Chinese contractor terminated the contract with only half of the works done.

  • Ndii: Keep The Treasury CS Job I Can’t Work With Uhuru

    Ndii: Keep The Treasury CS Job I Can’t Work With Uhuru

    Senior Economist David Ndii has rubbished off chances of him working for President Uhuru Kenyatta’s administration as Finance Cabinet Secretary.

    Ndii’s declaration comes a day after the arrest of Treasury CS Henry Rotich.

    Rotich, if he won’t resign, could probably be fired by Uhuru after DPP Noordin Haji linked him directly to the alleged loss of more that 19Billion meant for the construction of Kimwarer and Arror dams in Elgeyo-Marakwet County.

    Earlier In April, President Uhuru said that he will only sack those prosecuted in accordance with the law.

    “I must, however, caution that the pursuit of the corrupt will be undertaken strictly within the remits of the law, and not through vigilante justice and pitchfork protest. Though media narratives rally our resolve as they should, our actions will not be based on condemnation before one has been heard. The cornerstone of our democracy is the rule of law, and the principle of due process is a critical anchor.” President Kenyatta said.

    “It is not enough to merely jail and fine those who have looted our public coffers. The wealth they stole from Kenyans must be returned to its owners, the People of Kenya with the clear message being that Corruption does not pay,” President Uhuru added.

    CS Rotich was today arraigned in court alongside PS Kamau Thugge, in what is believed to be a move that could lead Cabinet reshuffle.

    With that out, David Ndii, one of loyal supporters and strategist of the former Prime Minister Raila Odinga has once again turned down requests and suggestions to take over the leadership of the Treasury.

    According to Ndii, Uhuru’s regime and reign is and will always remain illegitimate.

    Ndii posted this on his verified Twitter account.

    “Public Notice: I’m not available to work for Uhuru Kenyatta’s corrupt illegitimate govt. Those thinking corruption/ economy can be fixed in Treasury are gravely mistaken. National crisis will persist until a financial implosion or Jubilee is out of power whichever comes first,”

    David Ndii was responding to a tweet that had proposed him for the Treasury job.

    Ndii is one of, if not, the best economist in the country and also has international recognition in the same field of profession.

  • Babu Owino: Ruto Should Resign And Must Be Arrested

    Babu Owino: Ruto Should Resign And Must Be Arrested

    Vocal Embakasi East MP Babu Owino has called on Deputy President William Ruto to resign with immediate effect.

    Babu tweeted yesterday on his official twitter account saying that Ruto should not only resign but also face arrest.

    Babu Owino has been very vocal on matters of national interest also believes DP Ruto has a hand in the Dams scandal and wants him probed.

    Babu was commenting on news that Treasury CS Rotich had been arrested alongside Kamau Thugge (Treasury Principal Secretary) and Jackson Kinyanjui the Treasury Director of resource mobilization among others.

    On Ruto’s defense, his allies have linked the arrests as stage-managed by anti-Ruto agents in the government.

    “My conclusion from what I have seen is that we are not fighting corruption. What is happening is that we are lying to Kenyans and trying to create a narrative that is meant to show that there is an ongoing war on corruption,” Murkomen said .

    National Treasury CS Henry Rotich was arrested and was presented in Court today,Tuesday.

    Rotich pleaded not guilty to corruption charges over the award of two dam tenders in an unprecedented move against a sitting cabinet minister.

    Henry Rotich, Kamau Thugge the Treasury PS, Susan Jemtai Koech the East African Community PS and David Kipchumba Kimosop ,Former Managing Director KVDA are accused of conspiring to defraud the public among other charges.

    According to DPP Hajji, Rotich borrowed 63Billion for the two dams which were budgeted to cost 46billion.

    According to the charge sheet, the accused persons conspired to defraud the Government of Kenya between December 17, 2014 and September 27, 2018.

    Rotich and others have also been charged with wilful failure to comply with applicable procedures and guidelines relating to procurement as well as engaging in a project without prior planning.

    Other charges include abuse of office, committing an offence of financial misconduct, fraudulent acquisition of public property and wilful neglect to perform official duty.

    Lawyers representing the Rotich and other suspects include Katwa Kigen, Kioko Kilukumi, Ginaro Kibe, Kipchumba Murkomen among others.

  • Rotich: My Seniors Stopped Picking Up My Calls

    Rotich: My Seniors Stopped Picking Up My Calls

    Treasury Cabinet secretary Henry Rotich has been left to fry alone after DPP Hajji and DCI director Kinoti turned their  ‘guns’ on him.

    According to sources speaking to media, Rotich had foreseen his arrest, prosecution and sacking from the Cabinet almost three months ago.

    Sources close to Rotich told media that people close to him, Rotich, who are senior officials in government had stopped picking his calls.

    Rotich is reported to have confided in his friends and close business allies that he felt the government had thrown him under the bus and his Seniors left him to fry alone.

    According to sources speaking to local media said that Rotich must have been aware that something bad was coming up because he told us that his seniors had stopped responding to his text messages after the saga of the dams broke out.

    Rotich told his friends that he felt frustrated and betrayed according to a source.

    “We could tell that he was a disturbed man when he told us that in the past his messages were promptly responded to. It was like he was telling us that he had been left on his own,” Said a source speaking to Media.

    Rotich goose started cooking early this year when he was summoned to the DCI headquarters for questioning over the dams scandal.

    CS Rotich was first questioned by Police on 18th February this year. He was later to make four more visits to the DCI as investigations progressed.

    Rotich became a close friend with President Uhuru Kenyatta after working together at Treasury when President Uhuru was Finance minister under Retired President Mwai Kibaki’s reign.

    When Treasury CS was sucked into the dams scandal, their close ties with Head of State vaporised and since then, President Uhuru vowed that all top government officials implicated in corruption will carry their own cross.

    Rotich was arrested yesterday almost immediately after the DCI director George Kinoti and Director of Public Prosecutions Noordin Haji jetted in from their two-week visit in Italy.

    Kinoti and Hajji left for Italy on July 9 to meet government officials and the Italian government-owned insurer, Service Assicurnativi Dei Commercio Estero (SACE), which was paid Sh11.1 billion as insurance premium for a loan to build the two dams.

    “The investigations established that government officials flouted all procurement rules and abused their oath of office to ensure the scheme went through,” DPP Haji said in a press briefing.

    According to DPP Hajji, government officials went ahead to award the contracts to CMC Di Ravenna of Italy to run concurrently while aware that the firm was, at the time of award, straining and getting into voluntary liquidation back in Italy.

    The DCI director Kinoti had also asked CS Rotich about the missing National Environment Management Authority reports and lack of public participation in the Dam projects.

    According to records, a leading supermarket was paid Sh4 million for supplying pillows and bedsheets while a food and wine company based in Nairobi’s Lavington was paid Sh15 million for supplying food and wines to CMC.

    Car hire services costed Sh7 million while Sh18 million was used for aerial survey services and another company supplied alleged foodstuff worth Sh10.2 million.

    Another company was paid 6million to supply generators while another one was paid Sh19 million for physical studies.

    The records further indicate that another company was paid 13 million for provision of air tickets and yet another got 6 million for generators.