The Standard Team

Prime Minister Raila Odinga wants Education Minister Sam Ongeri and his Permanent Secretary to step aside over missing Free Primary Education funds, but now there is a groundswell in his own office.

And it is not just at the PM’s 14th floor offices at Treasury Building that an international audit firm investigating the maize scandal has recommended Kenya Anti-Corruption Commission to investigate afresh. Over at Nairobi’s Upper Hill area, Pricewaterhouse Coopers also wants investigations to be narrowed down to Agriculture Minister William Ruto’s PS Romano Kiome, and National Cereals and Produce Board Managing Director Gideon Misoi.

Prime Minister Raila Odinga

When the subsidised maize politics and the furore of depleted Strategic Grain Reserve exploded last year, Ruto and Prof Misoi were in the eye of the storm, and the Agriculture Minister survived a vote of no confidence in Parliament.

Over at Treasury, PwC is asking KACC to probe the PM’s PS Mohammed Isahakia and the PM’s Administrative Secretary Caroli Omondi.

With the stroke of the pen, fresh wave of the grain scandal, over which Raila and Ruto fought off allegations of meddling, fate appears to have forked out a common enemy for the two powerful politicians, who fell out over politics of Mau conservation.

The report does not, however, make a pitch for investigations of the PM and Ruto, but officers who report directly to them by virtue of their designations.

In signaling the possibility of what could follow, KACC’s spokesman Nicholas Simani wrote: "The commission is studying and going through the well detailed report, with a view to re-opening its investigations into the subsidised maize scandal."

Criminal culpability

He let out the fact that those to be investigated over subsidised maize scheme (SMS) could face criminal proceedings. He said the probe, if the authority deems it necessary, would seek to, "establish criminal culpability, including abuse of office and other irregularities related to the SMS".

The Standard got a copy of PriceWaterHouseCoopers’ report that describes Misoi as the "single most culpable individual" in the maize saga.

PwC — which was appointed last year by PM’s office to investigate the scam — outlined abuse of office, favouritism, and failure to keep proper accounting records as some possible charges.

Announcing to the country KACC had received the report on alleged irregularities in the SMS, Simani explained: "The Kenya Anti-Corruption Commission is proceeding to analyse the PwC Forensic Audit Report and where new evidenced is induced, appropriate action will be taken."

Dr Gideon Misoi	Romano Kiome	Mohamed Isahakia	Caroli Omondi

Ruto, when asked, said the "relevant people" should be asked about delays in making findings of the investigation public.

"The contents of the report should be made public. The ministries responsible and the persons mentioned should be made to account." But Ruto said he had not seen the report.

Also featured in the report is Special Programmes PS Ali Mohamed. His minister, Naomi Shaban in whose ministry the national grain reserve lies, later said she had not seen the report. "PwC dealt with PSs and (other) officers. When they need us we will be very co-operative," she said.

Curiously, it was a cornered Ongeri on Monday who said if he was to step aside as Raila, the PM, too, should have to set a good example by resigning over the maize scandal.

The report faults ‘over-sale’ of Strategic Grain Reserve in excess of 277, 000 bags and the allocation of subsidised maize to well-connected brokers who sold their bulk to millers at exorbitant profits. The scheme caused prices of maize flour to shoot up, beyond the reach of the poor.

Isahakia is in trouble over allocation in August 2008 of 10, 000 90kg-bags of maize to Interglobal, a software company in which he is a co-director. Interglobal later sold its allocation to Eldoret Grains, according to the report. In his defense to the investigators, Isahakia claimed to have had no knowledge of the transaction as he thought the company was still ‘dormant’.

He said his co-director Bare Shill, a former MP and NCPB board member, oversaw the transaction. The report says Bare confirmed he closed the deal with the miller and obtained Sh2 million ‘facilitation’ fee.

Omondi is accused of "what appears to have been an apparent breach of procurement regulations in relation to his initialing a contract with Afgri firm outside of formal process".

Every stage

On Misoi, the report says he was involved "at every stage of the scheme" and fully understood the Government’s objectives.

"In our view there is reasonably clear evidence to indicate that Misoi, both in his capacity as NCPB’s MD, and in his personal capacity, is the single most culpable individual relating to administration of the scheme and consequently he could be considered liable on a number of civil and criminal charges," states the report.

Citing "breakdown of internal controls at NCPB" the report faults Misoi over what it calls failure to disclose to the trustees that NCPB was selling maize in breach of instructions and for allegedly obtaining additional Strategic Grain Reserve stock to allow abuse of the scheme to persist.

On the PS for Special Programmes, who is also the chairman of SGR Trustees, the report faults him for failing to take action or order suspension of release of maize after the irregular activities at NCPB were brought to his attention "on or around September 15, 2008".

The National Cereals and Produce Board premises in Nairobi. Price Waterhouse Coopers have released a list of those who should be investigated in the maize scandal. [photo: FILE/ STANDARD]

Besides sanctioning the release of extra maize through a letter dated September 16, 2008, Ali is also reprimanded for ratifying the ‘over-sale’.

Kiome’s liability, according to the report, stems from his role as the accounting officer in the Ministry of Agriculture and as SGR trustee.

PwC cites Kiome’s ‘inactivity’ in the face of on-goings at NCPB and ratifying ‘over-sale’ of 277,000 bags.

The report observes the letters from senior public officers who were well informed about the scheme raised "serious issues about the conduct and motive of these individuals".

In the case of Ruto, PwC says though he approved sale to a disabled man it was baffling why it was 1000 bags in time of scarcity.