The Ethics and Anti-Corruption Commission (EACC) has mounted an inquiry into allegations of a conflict of interest and procurement irregularities involving the Head of Treasury at the Kwale County Government who is alleged to own a company known as Chilogola Holdings Limited, which has been trading with County Government of Kwale.

The Commission began investigations following the receipt of a complaint alleging conflict of interest by the Head of Treasury at Kwale County Government who is alleged to own two companies namely Rome Investment Limited and Chilogola Holdings Limited which had received KSh9,000,000 from Kwale County Government.

Investigations established that Chilogola Holdings Limited tendered with the County Government of Kwale for various works between the financial years 2018 to 2021.

Head of Treasury Also Company Director

The Head of Treasury at Kwale County Government, however, was also a Director at Chilogola Holdings Limited until he later resigned, and as Head of Treasury had the final approver of the payments of KSh22,850,891 that were made to Chilogola Holdings Limited by Kwale County Government.

False Documents

Investigations also revealed that Chilogola Holdings Limited had submitted false documents as proof of works previously done while applying for tenders and had fraudulently benefited from the

Kwale County Government. Here again the said Head of Treasury was a signatory to Chilogola Holdings Limited bank account and was transacting from the bank account even after resigning as the Director of Chilogola Holdings Limited.

On 13th March 2023, a report was compiled and forwarded to the DPP with recommendation that the then Head of Treasury, Kwale County Government be charged with:

• The offence of conflict of interest contrary to section 42(3) as read with section 48 of ACECA;

• Fraudulent acquisition of public property contrary to section 45 (1) (a) as read with section 48 of ACECA;

• Fraudulent practice in procurement proceedings contrary to section 66 as read with section 177 of the Public Procurement and Asset Disposal Act, 2015;

• Uttering false documents contrary to section 353 of the Penal Code.
On 27th April, 2023, the DPP returned the file with recommendation for further investigations.

Head of Treasury’s Brothers Also Company Directors

The EACC’s investigations also established that Chilogola Holdings Limited and Rome Investments Limited had tendered and entered into contracts (local service orders) for various request for quotation procurements with the County Government of Kwale between the financial years 2017 to 2020.

Ksh10 Million Payment

The Head of Treasury at Kwale County Government was a Director at Chilogola Holdings Limited before he resigned and his four brothers were the Directors of Rome Investment Limited. The Head of Treasury was the final approver of payments of KSh. 10,839,630 that were made to Chilogola Holdings Limited by Kwale County Government.

The EACC’s investigations also revealed that the said Head of Treasury was a signatory to the Chilogola Holdings Limited bank account and was transacting from the bank account even after resigning as the Director of Chilogola Holdings Limited.

On 13th March, 2023, a report was compiled and forwarded to the DPP with recommendation that the then Head of Treasury, Kwale County Government be charged with the offence of conflict of interest contrary to section 42 (3) as read with section 48 of ACECA.

On 14th April, 2023, the DPP returned the file with recommendation for further investigations.

[Source: Kenya Gazette, Vol. CXXV-No.122]