Anti-graft commission to probe fraud at scouts headquarters

By ALLY JAMAH

Officials of the Kenya Anti-Corruption Commission may soon move to the offices of the Kenya Scouts Association (KSA) after a report claimed there is graft in the institution.

KACC Director PLO Lumumba, who has seen the report, said his officers could move in next month after KSA National Executive Committee has considered the substance of the report tabled by a commission of inquiry on Tuesday.

The report claimed that millions of shillings were lost at the 13th World Scout Moot held between July 27 and August 7, in Nairobi. The taxpayer shelled out Sh45 million for the event, while others contributed Sh60 million.

The high profile event that brought together about 1,600 participants from 66 countries was officially opened by President Kibaki.

"There is no doubt that there have been reports of financial impropriety, and if there is credible evidence of wrongdoing, we will take action," said Dr Lumumba in an interview at Integrity Centre.

Vice-President Kalonzo Musyoka is the chief commissioner of the organisation, but has not been linked to the alleged racket.

Incidentally, Lumumba is the legal advisor of KSA, but was quick to dismiss suggestions of conflict of interest if KACC launches a probe on the organisation.

In shady deals

"I am not involved in running the organisation. I only provide legal advice pro bono and I do not see any problem with that," he said.

The investigators said at least Sh35 million was lost in shady deals involving deliberate overpricing of goods and services as well as expenses that could not be accounted for.

"The event should have cost about Sh60 million, but shot up to Sh95 million due to alleged corruption. The money appears to have ended in people’s pockets and the sponsors lost their money," said a member of the commission who is not authorised to speak to the Press.

The report cited a case in which a firm linked to a KSA official was paid Sh150,000 to design the event’s website and Sh25,000 monthly to maintain it, instead of the market rates of Sh30,000 (once only) and Sh3,500 (per year). The same company was paid Sh130,000 extra money in unclear circumstances.

The report also raised queries about a wooden and metal gate that cost Sh546,000 insisting it could not have been more than Sh20,000. Bananas cost Sh10 a piece even though they were being bought wholesale.

During the probe, another firm linked to a KSA official offered to refund Sh282,000 after it emerged they were paid for non-existent services.

Held accountable

The report said KSA national executive commissioner should be held accountable for failing to supervise his staff and preventing the loss of money. It also recommended that officials directly involved in the scam be prosecuted.

On Tuesday, the National Executive Committee had a stormy meeting when the report was tabled, but members decided to debate it next month.