Allegations of irregular award of tenders worth KSh45m by the NGCDF to companies associated with an Internal Auditor at the National Government Constituency Development Fund Board (NG-CDF) during the Financial Years 2018–2022…

EACC Investigations

The Ethics and Anti-Corruption Commission (EACC) commenced investigations following a report received on allegations of irregular award of tenders by the NG-CDF to companies associated with an Internal Auditor at NG-CDF Board during the financial years 2018/2019 – 2021/2022.

Investigation established that the suspect, an unnamed woman, was seconded to the Constituency Development Fund Board on 26th July, 2011 as an Internal Auditor. Subsequently, she joined the Constituency Development Fund Board and appointed as the Principal Internal Auditor on 4th August, 2022.

Auditing the auditor’s multiple companies

In 2016, the Head of Internal Audit tasked the suspect to audit projects undertaken by the Constituency Development Fund in Kajiado East Constituency (CDF) in the 2014/2015 and 2015/2016 Financial years.

Investigation established that immediately after the completion of the audit exercise, the suspect started undertaking projects in Kajiado East Constituency project using four companies associated with her.

It transpired that she is the Director of OneTouch Professional Limited, Opulence Africa Merchants, Pyramid Concepts East Africa Ltd and a bank signatory to Braimo General Merchants. She is also the sole Bank Signatory to all the bank accounts held in respect of the four companies.

KSh 59,045,580 in payments

Investigation revealed that between 2017 and 2022, the four companies received a total of KSh.59,045,580 being payments from NG-CDF funded projects in Kajiado East Constituency with the assistance of the Funds Account Manager.

The suspect held a private interest in the contracts awarded to the companies associated to her by the Project Management Committee. Further, the suspect, upon receiving payments from NG-CDF, transferred money to the Funds Accounts Manager, the Quantity Surveyor and Clerk of Works both from Kajiado County. The amounts of cash were received during the implementation phase of the projects in the constituency awarded to the Principal Internal Auditor that were being supervised by the Quantity Surveyor and Clerk of Works.

EACC recommends charges

On 23rd May, 2024, a report was compiled and forwarded to the DPP with recommendations to charge the Internal Auditor, Fund Account Manager, Quantity Surveyor and the contractedcompanies 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, 2003.
(ii) Five counts of conflict of interest contrary to section 42 (3) as read with section 48 of ACECA.
(iii) One count of willful 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, 2003.
(iv) Three counts of fraudulent acquisition of public property contrary to section 45 (1) (a) as read with section 48 of ACECA.
(v) Four counts of uttering false documents contrary to section 353 of the Penal Code.

The DPP’s response is awaited.

Principal source, Kenya Gazette