Nick Mwendwa (Photo courtesy Mozzart Sport)

Ethics and Anti-Corruption Commission investigations into corruption allegations in the tendering process for the design, supply, testing, commisioning and supervision of security access control communications, audio visual and pitch lighting systems for five stadia in preparation for the Africa Nations Championships, 2018 at KSh 15 Billion by the State Department for Sports, Culture and the Arts.

The Ethics and Anti-Corruption Commission (EACC) received a complaint of embezzlement of public funds and irregular procurement process by public officials during the intended 2018 African Nations Championships 2018. The Ministry of Sports, Culture and Arts (MoSCA) and Sports Kenya, a parastatal within MoSCA, was tasked to organize the event.

Auditel Kenya KSh 330,537,997 Tender Fraud Allegations

Investigations established that Auditel Kenya was awarded the tender irregularly since they attached false documents to their bid document. Investigations established that Auditel Kenya did not render any services in the five stadia as per the contract. As such, the Permanent Secretary, the Director Administration, the Principal Accountant and the Chief Finance Officer of MoSCA who were involved in the procurement process and approving the payment, abused their office by conferring a benefit of KSh. 330,537,997 to Auditel Kenya for services not rendered.

Investigations established that Auditel Kenya fraudulently received public property amounting to KSh 330,537,997 for services not rendered.

Restea Enterprises, Football Federation Kenya and Leastrade Ltd Allegations
Financial investigations established that after Auditel Kenya was paid, KSh 25, 682,893 was transferred to Restea Enterprises (Restea). Restea transferred money to persons associated with the Football Federation Kenya (FKF) President, Leasepath Ltd and Leasetrade Ltd. The Directors of Restea, Leasepath Ltd, Leasetrade Ltd and the FKF President therefore knowingly engaged in an arrangement to receive money from Auditel Kenya with the intent to conceal the source of the said amount yet they knew that the said monies were obtained for services not rendered.

EACC Recommends DPP to Press Charges

On 8th January, 2024 a report was compiled and forwarded to the DPP with recommendations to charge the then Permanent Secretary, MoSCA, the then Chief Finance Officer MoSCA, the then Principal Accountant, MoSCA, the FKF President, the Senior Superintendent Engineer MoSCA, Mechanical Engineer at Sports Kenya, the then Director of Administration MosCA, Auditel Kenya Ltd and it Director, Restea Enterprises Ltd and its Director, Leasepride Ltd and its Director, Leasepath Ltd and its Director, Leasepride Ltd and its Director with the following offences:-

(i) Conspiracy to commit an offence of corruption contrary to section 47A (3) as read with section 48 (1) of the Anti-Corruption and Economic Crimes Act No. 3 of 2003.

(ii) Three counts of Abuse of Office contrary to section 46 as read with section 48 of the Anti-Corruption and Economic Crimes Act No. 3 of 2003.

(iii) Three counts of financial misconduct contrary to section 197(1) (i) as read with section 199 of the Public Finance Management Act, 2012.

(iv) One count of wilful failure to comply with the law relating to procurement contrary to section 45 (2) as read with section 48 (1) of the Anti-Corruption and Economic Crimes Act No. 3 of 2003.(v) One count of Money laundering contrary to section 3(a) as read with section 16 of the Proceeds of Crime and Anti- Money Laundering Act 2009.

(vi) Three counts of Acquisition of Proceeds of Crime contrary to section 4 as read with section 16 of the Proceeds of Crime and Anti-Money Laundering Act, 2009.

(vii) One count of unlawful acquisition of public property contrary to section 45 (10) (a) as read with section 48 (1) of the Anti-Corruption and Economic Crimes Act No. 3 of 2003.

On 27th March, 2024 the DPP returned the Inquiry file with recommendations for further investigations.

Primary Source Kenya Gazette 17th May 2024

See also Daily Nation, May 17th, 2024, EACC seeks arrest of FKF’s Nick Mwendwa, ex-PS Kaberia over Sh1.5bn 2018 CHAN fiasco