Chair of anti-graft body Philip Kinisu probed over NYS dealings

Ethics and Anti-Corruption Commission (EACC) Chairman Philip Kinisu. He  is being probed on family dealings with the troubled National Youth Service. (PHOTO: BONIFACEOKENDO/ STANDARD)

The Ethics and Anti-Corruption Commission (EACC) chairman is being probed on family dealings with the troubled National Youth Service.

This was announced yesterday by four EACC commissioners and the CEO in a joint press statement.

According to the statement, which was signed by EACC Vice Chairperson Sophia Lepuchirit and commissioners Dabar Maalim, Philip Gachoka, Rose Macharia and Halakhe Waqo, chairman Philip Kinisu is being investigated by officers from the Directorate of Criminal Investigation (DCI), Asset Recovery Agency an Kenya Revenue Authority under the Multi-Agency team framework.

The team is trying to look into the allegations that link the EACC chairman to the Sh791 million scandal at the National Youth Service (NYS). The decision to investigate Esaki Ltd, a company run by Mr Kinisu's wife, was arrived at on July 11, 2016, during a meeting called after preliminary investigations disclosed that the company had indeed transacted with NYS at a time when it was being investigated over the Sh791 million saga.

The commission had further established that the company had been doing business with other Government agencies. Esaki Ltd was reported to have received millions in payments for goods and services to NYS. The transactions took place between October 2014 and November 2015, when Esaki is said to have received over Sh35 million for supplies of borehole machines and steel drums among other unspecified items.

Civil society

The company's link to the NYS saga was brought to the attention of the commission by a civil society group, Bunge la Mwananchi.

"On June 23, 2016, the commission received a complaint from Bunge la Mwananchi, a civil society group, with allegations that a firm managed by the wife of the EACC chairman, Esaki Ltd, was involved in scandals at the NYS where it was allegedly paid for goods that were never supplied and that the company colluded with NYS officers and banks to defraud the youth service," said the statement.

The anti-graft agency yesterday explained that the matter had been forwarded to the Director of Public Prosecutions (DPP) on recommendation of a special commission that sat on July 11. The commission advised on the multi-agency approach since the allegations fell under the mandate of different agencies.

"The DPP in his letter dated July 15 addressed to the DCI (also copied to EACC) advised that the appropriate way forward is for the allegations to be investigated by a joint team comprising the DCI, Asset Recovery and KRA under the multi-agency framework," read the statement.

The statement also revealed that Kinisu had admitted to being the owner of the company in the preliminary investigation that was supported in an undisclosed wealth declaration form.

"However, he further reported to have resigned as its director," added the statement.

Kinisu is also said to have exempted himself from the commission formed to inquire into the allegations.

"From the commission's investigations, the company did indeed conduct business with NYS under the specified period. But a forensic investigation was further recommendeded to ascertain if irregularities did exist in the process," the statement said.