MPs demand lifestyle audit of Kilifi county officials

Kilifi County MPS led by Malindi MP Willy Mtengo (middle),Rabai MP William Kanoti (left) and Magarini MP Harry Kombe address the emerging graft allegations in the Kilifi County Government at Parliament Buildings 16-11-16 PHOTO MOSES OMUSULA

Four MPs yesterday called for a lifestyle audit of Kilifi county government staff as it emerged that the amount of money lost through manipulation of electronic payment systems could run into hundreds of millions of shillings.

One of the 10 county officials who were suspended over the loss of Sh51 million said the amount looted by far outstripped this amount.

The officials were suspended last week after it was discovered that their passwords were used to siphon the Sh51 million from the county government’s account at Central Bank of Kenya (CBK) into the accounts of six companies based in Nairobi.

Among those suspended is the officer said to have alerted County Secretary Owen Baya about the anomaly.

The officials testified in camera at the Kilifi county assembly after journalists were locked out.

However, an officer who attended the grilling told The Standard that they claimed that they were manipulated by an official within the county government to transfer the money into the bank accounts of the six Nairobi-based firms.

Yesterday, assembly Speaker Jimmy Kahindi told journalists in Malindi that “the officials requested to be heard in camera fearing for their security but they did not offer any names during the interrogation”.

Mr Kahindi said the officials dropped all manner of allegations, including claiming that Sh1.8 billion has been lost, but there was nothing on record as evidence and they could not prove their allegations. “The only fact on record is the Sh51 million lost,” said Kahindi.

Members of Parliament including Willy Mtengo (Malindi), Harrison Kombe (Magarini), Kamoti Mwamkale (Rabai) and Gunga Mwinga (Kaloleni) yesterday said action must be taken against all those linked to the scam.

“All state agencies involved in this matter must carry out independent and in depth investigations and take appropriate action,” said Mr Mtengo.

“A lifestyle audit should be conducted on county government officials with a view of ascertaining the sudden source of wealth that they seem to enjoy.”

Reports indicate that CBK had informed the committee investigating the fraud that there was no evidence to show the system was hacked from outside. The assembly Speaker also announced that the committee would seek audience with the administrator of the Integrated Financial Management Information System (Ifmis) to determine the Internet Protocol addresses of those who infiltrated the accounts.

Last week, Governor Amason Kingi suspended the 10 officials pending investigations by the assembly, Criminal Investigation Department, Banking Fraud Investigation Department and Ethics and Anti-Corruption Commission. Mr Kingi also named the six firms that received the money, which was wired from the county’s account at the CBK and their directors.

The committee was told last week that the Sh51 million was illegally wired through Ifmis to Makegra Supplies, Zohali Supplies, Kilingi Investment, Leadership Edge Associates and Daima One Enterprises after the suspended officers’ passwords were allegedly stolen.

“This scam is bigger than the public knows. A lot of money is unaccounted for. It is clear that some top officers are members of a cartel that operates inside and outside county circles to siphon public funds,” said one of the officials on Tuesday who claimed that during the grilling it was alleged that several officials in the county administration had had their accounts frozen following the alleged loss of Sh200 million.

The source said the suspended officers alleged that some EACC detectives and local police were colluding with some county officials to steal money and cover up their crimes.