DCI moves in to probe Kisumu projects funded by the French

Bank accounts belonging to Kisumu Urban Project (KUP) funded by the French government have been frozen over suspected money laundering.

The Directorate of Criminal Investigations (DCI) wrote to the city manager Dorrice Ombara seeking to probe suspicions of money laundering.

The DCI moved in after it emerged that more than Sh1 billion was sent to a wrong account and then taken back to the Treasury.

The Treasury then rerouted the money back to Kisumu, raising questions on why the funds were sent to KCB then to an account at the Diamond Trust Bank.

The KUP operates two accounts at KCB and at Diamond Trust Bank. The money was sent by the State Department of Housing to the City Management.

It was meant to pay contractors and suppliers in multi-billion shilling contracts funded by KUP.

Sources told Sunday Standard that the donors channel the funds through the National Treasury which then releases it to the line ministry and onwards to the county.

The DCI had stopped all payments under KUP accounts until it concludes investigations into the current projects funded from the kitty.

The detectives are in Kisumu County to find out how the authorities have spent money allocated to them for KUP projects.

So far, Ms Ombara and KUP Project’s Chief Accountant Ochieng Orwa have recorded statements over the projects’ accounts and projects.

The projects’ administrator Charles Omollo has also been questioned. Omollo said the DCI had requested to be taken to the field to verify the projects.

KUP is undertaking more than 30 projects in Kisumu. They include roads and housing projects.

‘’Some are complete, others are ongoing. We have no hidden treasures. We will take them (DCI) round to see,’’ Omollo said.

But the reality on the ground is that most works have stalled after the KUP projects accounts were frozen by the DCI.

The French government had undertaken to construct five model schools and five bitumen standard roads. 

A spot check by Sunday Standard established that contractors have moved out of some sites, citing delayed payment yet the donors released the money several months ago.

The DCI also wants KUP authorities to shed light on the project’s cash and how tenders were awarded.

The investigating team has demanded all payment vouchers for projects. They also want to probe all contractors’ accounts to ascertain whether or not they received the pay.