EACC grills Otuoma over alleged award of Sh1.4b tender to proxies

Busia Governor Paul Otuoma appeared before the EACC to record a statement in the matter where he is a person of interest. [File, Standard]

Busia Governor Paul Otuoma on Tuesday appeared before the Ethics and Anti-Corruption Commission (EACC) Western Regional Offices in Bungoma, after being summoned over alleged irregular award of tender and payment of Sh1.4 billion to proxies.

Otuoma appeared before the EACC between t 9:30 am to 2.00 pm to record a statement, to facilitate ongoing investigations in the matter where he is a person of interest.

The EACC investigations stem from reports from the public and the Senate over alleged entrenched corruption and theft of public funds by Busia County public officials through revenue diversion and procurement fraud using proxy companies.

The governor was interrogated over alleged Irregular award of tender and payment of over Sh1.4 billion to 26 proxy companies operated by family members and associates of senior Busia county officials, including Dr Otuoma, which traded with the County Government of Busia during the financial years 2022/2023 to 2024/2025.

Out of the funds, Sh90,031,678.45 was paid to four private entities, namely Baya Farmcare Limited, Leokiz Investment Limited, and Multidose Agro Supplies Limited, allegedly linked to the governor and his family.

As part of these investigations, the Commission conducted a search operation last year targeting three CEC members, Topister Wanyama (Finance), Peter Odima (Lands), and Paul Olunga (Youth & Sports); one Chief Officer, Gypson Ojiambo Wafula (Finance); and two Directors, Evans Wandera (Budget) and Leonard Omacha (Supply Chain Management).

EACC is also probing irregular procurement and economic crimes in the construction works for the Busia Trailer Park Yard by the County Government of Busia during the financial year 2023/2024.

It is alleged that the county government irregularly leased public land parcel number Bukhayo/Bugengi/13213, approximately 2.4 hectares, for the construction of a Trailer Park Yard in Busia Town, without any tendering process, thereby exposing the public to loss after signing an Agreement with the Contractor M/s Athi Limited for a term of 25 years at an annual rent of Sh.1,400,000, to escalate every five years at a rate of 10 per cent with ensuing parking revenue shared at 30 per cent to the county government and 70 per cent to Athi Limited.

The project was initiated to create a parking yard to accommodate over 200 trailers and provide ancillary services for modern trailer park infrastructure, in response to public outcry over traffic congestion along the highway caused by trailers crossing the Kenya-Uganda border.