Cemetry: KACC questions lawyer over Sh59m lost in land purchase

By Mutinda Mwanzia and Athman Amran

Controversy surrounding cemetery scandal into which Deputy Prime Minister Musalia Mudavadi has been sucked continued to rivet public attention.

The Kenya Anti-Corruption Commission questioned a lawyer, Newton Osiemo its report claimed collected Sh59 million of Sh120 million allegedly ‘loaded’ onto the buying price, but which was later shared among public officials, lawyers, and speculators.

But in another interesting twist, Maina Chege who owns Naen Rech Ltd, which sold the 120-acre farm in Athi River to the Nairobi City Council, reportedly for Sh283 million, turned up at KACC, claiming he was defrauded of Sh173 million in the deal.

Mr Osiemo, who KACC had claimed was ‘taking care of the interests’ of Mudavadi, suspended Local Government PS Sammy Kirui, and other top ministry and NCC officials, denied having acted on behalf of Mudavadi.

Newton Osiemo (left) and his lawyer Owino Opiyo after interrogation by the Kenya Anti-Corruption Commission at the Integrity Centre in Nairobi on Thursday. Photo: Boniface Okendo/ Standard

On Thursday, an MP produced in the House an affidavit Osiemo signed in which he denied any links with the DPM. According to sources at KACC, the investigators are not through with Osiemo. He is expected back at Integrity Centre next week to answer questions on his role in the scam and links with Mudavadi.

Osiemo arrived at Integrity Centre at 10am accompanied by his lawyer, Owino Opiyo. They left at 5pm. "We were interviewed and stated the facts as we know them," Osiemo’s lawyer said.

Nairobi Mayor, Geoffrey Majiwa, who was said to have walked away with Sh11 million in the scandal in which city ratepayers were left with rocky land unsuitable for burials, called off a press conference in which he was expected to talk about the scam.

Called off

The mayor called it off 15 minutes to 2pm when it was to begin. He did not give reasons for the cancellation. The mayor was the first official to blow the whistle on the scam last year, but KACC report claims he was a beneficiary of the fraud, along with 13 top ministry and council officials ordered to step aside by the President, on Monday.

Many unanswered questions lingered as the debate raged over the scandal in which a plot of land, whose real value is Sh24 million, was bought at Sh283 million.

Mudavadi on Wednesday said he knows Osiemo, but denied he represented him in the scam.

On Wednesday Osiemo said, "I would like to state that I have no relationships, personal or business with Mudavadi or PS Sammy Kirui. At no time was I introduced to anybody as a representative of the above."

But who between the two is telling the truth?

At the same time, the agent who brokered the land ‘deal’ has added a new twist to the saga. He claimed he was defrauded of Sh173 million that was supposed to be his "profit".

Chege argued the deal was clean and he would not hesitate to participate in a similar one in the future. "I am a businessman and I look for opportunities to make money. Given another chance I would do the same deal again, even today," said Chege.

Accosted twice

Another question is who the people who have threatened the life of Agnes Nenkau, the widow who claims the land originally belonged to her family, are. The widow has said some men have accosted her twice in the last week and threatened to kill her for "shaming the bosses".

She said the land belonged to her husband Wilson Makaita who died in 2002.

The cemetery deal has caused a storm in Government, prompting President Kibaki to suspend 13 top officials from the Ministry of Local Government and the Nairobi City Council.

Prime Minister Raila Odinga stepped into the fray, claiming the allegations were political and meant to malign ODM.

He defended his deputy in ODM, but at the same time added he was ready to ask Mudavadi to step aside if investigators prove his involvement.

He, however, asked: "But how can I do that when those I have asked to step aside have been told to stay on (by President?). It would be pointless to repeat such an action."

Raila spoke during an interview aired on Kass FM yesterday. On Wednesday, Raila was hard-pressed to explain to Parliament why he had not suspended Mudavadi.

Suspended Mudavadi

MPs questioned why Raila had not suspended Mudavadi like he did Agriculture Minister William Ruto, who is a rival of the PM, and Education Minister Sam Ongeri, who is allied to the PNU wing of Government.

Mudavadi has stated that he was not among the people who shared the proceeds of the fraud. He said this was a political set up, since the land transaction was never brought to his attention.

KACC officers questioned the minister for four hours on Wednesday at his office at Jogoo House office, but he said they came at his invitation.

On Thursday, the land broker told The Standard he was only paid Sh9 million by his lawyers and said he had filed two cases in court against the advocates who received the money on his behalf.

"Those saying the transaction is a scandal should know that I am the one who has been wronged since I am yet to receive the full payment for the deal," said Chege.

Chege told The Standard for the entire deal his company was to be paid Sh283,200,000, and would have made a profit of Sh175 million.