House team wants anti-graft body to go after former senior State officials

Wajir West MP Adan Keynan addresses the press on the drought in North Eastern in which he appealed for donors to assist.PHOTO: BONIFACE OKENDO

A House team has recommended the investigation of several former senior government officials for irregular loss of public funds in state corporations.

This follows recommendations by the National Assembly’s Public Investments Committee (PIC) chaired by Adan Keynan (Eldas), which interrogated audit reports prepared by the Auditor General from 2001-2014.

The committee has asked the Ethics and Anti-Corruption Commission (EACC) to investigate former officials mentioned in its 400-page report within one month after the report is adopted by the House.

The report, which was debated and adopted two weeks ago, focuses on irregular procurement, irregular payment of allowances, and unapproved expenditures among other issues in 64 state corporations.

It comes at a time when the proposed parastatal reforms spearheaded by President Uhuru Kenyatta have stalled.

The committee wants EACC to conclude investigations into a case in which Sh150 million was allegedly deposited by the then management of Pyrethrum Board of Kenya (PBK) in the collapse of Euro Bank in 2002.

On October 17, 2001, the board placed a short-term deposit of Sh150 million at an interest rate of 9 per cent per annum for 90 days with Euro Bank, which was subsequently placed under liquidation by the Central Bank of Kenya on February 22, 2002.

The committee recommended investigations into the then managing director with a view to holding him accountable for the loss of the money, which was deposited without the board’s approval.

In another recommendation, a former PBK managing director, Pauline Sego, should be held accountable for over-expenditure of Sh38 million.

 IRREGULAR PURCHASE

Others in PBK the committee wants investigated are former managing director Joshua Kiptoon for irregular purchase of two second-hand diesel generators at Sh25 million.

The team also revealed that the Kenya Medical Laboratory Technicians and Technologists Board lost Sh8.1 million from 2003-2005 in irregular allowances paid to board members.

According to PIC, the then registrar, Joseph Gachere, should be held accountable for contravening the State Corporations Act by paying honoraria without National Treasury and parent ministry approval.

The committee further recommends the recovery of Sh8,158 493 irregularly paid to board members including Wilson Njeru Kaaria, Moses Lorre, James Sakwa, Zephania Irura, Nancy Bowen, Maina Ogutu, Samson Wangila, Fred Mwasya, Zahara Hassan, Tubman Ogwara and Alloys Safari.

It also recommends that Peter Lokamar, who was the board's registrar from 2010-2012, should be held accountable for the loss of Sh13.4 million for unnecessary expenditure on advertising, hiring of auctioneer services, tax and legal firms that were not budgeted for.

The committee observed that Kenya Meat Commission acting managing commissioner Ibrahim Hajji purchased a Toyota Prado without following the procurement laws.

It recommends that Dr Hajji and the former procurement manager breached the Public Procurement and Disposal Act 2005.

The troubled Youth Enterprise Development Fund Board, according to the audit, irregularly spent Sh31 million to purchase 110 motorcycles for the youth officers in constituencies during the 2010-2012 financial year.

The committee recommended the investigation of the then CEO, Umario Wario, and members of  the tender committee for breach of the Public Procurement and Disposal Act 2005, causing the board to incur Sh31,845,000 in expenditure.

The committee also want the then CEO, Ture Boru surcharged Sh1.9 million incurred by the board in 2007 to procure public relations services from Skywest Production.

The committee further says 14 county commissioners are yet to account for full expenditure of over Sh87 million disbursed to facilitate the transition to devolved units in 2013.

The House team report noted that Baringo, Bungoma, Elgeyo Marakwet, Kilifi, Machakos, Mandera, Nyamira, Nyeri, Samburu, Taita Taveta, Tharaka Nithi, Kajiado, Vihiga and Wajir county commissioners were yet to account for the money.

SURCHARGE OFFICERS

Consequently, PIC has asked the Principal Secretary in the Ministry of Interior and Co-ordination of National Government to surcharge the officers within three months of adoption of the report.

The committee further asked EACC to investigate 32 county co-ordinators and governors for abuse and misuse of public funds contrary to the provisions of the law.

The committee wants EACC to investigate former board members of Sony Sugar Limited for the loss of Sh16 million following the purchase of a grader in 1998.

Also to be investigated is the former boss of Horticultural Crops Development Authority.

The report recommends that if found culpable, he should be held accountable and surcharged.