A parastatal under the Ministry of Education illegally paid out Sh75 million for science equipment that was never delivered, The Standard can reveal.

Kenya Anti-Corruption Commission (KACC) is investigating the fraud at the Schools Equipment Production Unit (Sepu), a unit charged with designing and producing science equipment for schools countrywide.

Details in our possession indicate that the payment for the single-sourced contract was rushed in total disregard of the procurement procedures. Sepu Managing Director Benson Anyona confirmed the issue is being investigated by KACC but declined to give further details.

"The fact is that KACC is on it, so you better wait for my explanation on Monday (today). You publish it (the claims) at your own risk. I will meet you in court next week," Anyona said when asked to comment on the telephone.

He downplayed the scandal attributing it to malice from disgruntled members of staff adding that the transaction was above board.

"There is nothing fishy," he insisted adding: "All this is fitina (malice)."

It is not clear why Sepu settled on Vulcan Limited to supply the equipment. Whistle blowers reported the matter to KACC, leading to the cancellation of the cheque before it could mature. The cheque for Sh75,086,000 was part of money to purchase science equipment for distribution in secondary schools. The chairperson of Sepu board of directors Lydia Nzomo also confirmed that KACC was investigating the matter.

"They (KACC officials) have even interviewed me over the matter," said Nzomo, who is also the director, Kenya Institute of Education.

Nzomo said she learnt of the fraud when KACC officials sought to discuss the matter.

Documents detained

KACC has detained documents related to the case, which include cheque-books and other stores. The finance and general purposes committee at Sepu involved in the procurement includes an education official who has since been suspended.

Sources said a board meeting was immediately convened when KACC struck at Sepu, as directors were said to be in the dark over the matter.

"The meeting was stormy and eventually ended in disarray," said a source who declined to be named.

The fraud occurred on July 16 this year when a Mr Wilson Maitsi Shivachi raised a requisition without tendering the procurement as required by the Public Procurement and Disposal Act, 2005.

Inside sources said the internal auditor at Sepu declined to sign the requisition form after realising that the correct procedure was not followed.

The form was then taken to a cashier who signed the requisition. Surprisingly, a cheque was drawn that day and signed by Anyona, his deputy, Bernard Ongige Moses and accountant Perpetua Wanaswa Onsedi.

Interestingly, the accountant and the MD signed the cheque while out of the office.

Onsedi confirmed to The Standard that she signed the cheque while away on sick leave.

"When you are on leave does not mean that work must stop," she said, adding the hurried payment was done because there was urgency to supply schools with the science equipment.

"I was told the payment was stopped because the tender was not awarded and that the board has agreed that we award the tender," said Onsedi.

She said the cheque-books are still detained at the KACC, which is yet to conclude the case.

The firm awarded the business, Vulcan Ltd, confirmed that it received the cheque but declined to comment further on the issue.

"I’m not interested in discussing this matter with you. You can get the information you want from the people who gave you my number," said a Mr Vishal, the managing director at Vulcan Ltd.

Another source at the Education Ministry told The Standard the irregularities were raised by some members of staff but ended soon after.