Isiolo (Photo courtesy Abiri Kenya)

Inquiry into allegations of the embezzlement of public funds amounting to KSh.163,377,754 by the County Government of Isiolo in the irregular award of a tender for the supply of food items and the hire of transport to Dabasiti Contractors and Suppliers Limited.

The Ethics and Anti-Corruption Commission (EACC) commenced investigation after receiving allegations that the County Government of Isiolo was in the process of making a fraudulent payment of approximately KSh.163,377,754 to various suppliers for goods that had not been delivered.

It was further alleged that these suppliers had filed a civil case against the County of Isiolo Chief Magistrate Court, in which they had obtained a favourable ruling for the payment.

Dabasiti Contractors and supply limited

Investigation established that the County Government of Isiolo contracted Dabasiti Contractors and Suppliers Limited for the supply of food items and the hire of transport services. Yet, the two procurements were initiated without a procurement plan or budget.

Investigation also established that the requisition for the hire of transport services was made after the County Government of Isiolo had executed the contract between itself and the contractor. The County did not employ any procurement method for obtaining the supply of relief food. Nonetheless, the food was delivered, received, and distributed to county residents.

Further investigation established that despite several requests for the payments, the county failed to pay the contractor KSh17,062,000 for the relief food, and KSh.8,400,000 for the transport services. Consequentially, the contractor sued the county for the outstanding amounts. As a result, the contractor requested and obtained summary judgment for what was owed, on the grounds that the county had not denied owing these amounts.

Investigation established that the county engaged the Office of the Auditor General (OAG) and the Pending Bills Verification Task Force Committee (PBVC) to validate the bills owed by the County.

The OAG and PBVC in their respective reports, classified the contractor’s debts as an eligible pending bill, and recommended that the appropriate payment be made. The county and the contractor agreed upon a means of payment for the outstanding sums, and the county has since settled the bill.

On 22 July 2024, a report was compiled and forwarded to the Director of Public Prosecutions (DPP) with recommendations to charge two chief officers in the governor’s office as follows: –

(i) 8 counts of wilful failure to comply with the procurement law in violation of section 45 (2) (b) as defined by section 48 of the Anti-Corruption and Economic Crimes Act No. 3 of 2003.

(ii) 4 counts of abuse of office in violation of section 46 as defined by section 48 of the Anti-Corruption and Economic Crimes Act No.3 of 2003.

The DPP’s response is awaited.

Primary source: The Kenya Gazette