Inquiry into Allegations of Irregular Payment off KSh.107,481,060 for the Construction of Mandera County Headquarters

The Ethics and Anti-Corruption Commission (EACC) commenced investigations upon receiving a complaint that Mandera County Government irregularly paid Green County Construction Company Limited KSh107,481,060 for construction of the County Headquarters in the Financial Year 2013/2014.

Green County Construction Company Limited

Investigations established that the County initiated a procurement for construction of the County Headquarters. The bids were duly processed and the tender awarded to Green County Construction Company Limited at a cost of KSh290,230,790.

The EACC investigation also found that that the Contractor submitted a forged bid bond from Co-operative Bank of Kenya and performance guarantee from Equity Bank Limited.

Investigations revealed that the Contractor stalled the project leading to termination of the contract, and that the Consultant did valuation of the works undertaken by the contractor from beginning to the time of termination of the contract for purposes of final payment at KSh166,000,000. However, Green County Construction Company Limited was actually paid KSh204, 878,417.23.

Mandera County Lost Over Ksh32 Million

Investigations established that the County lost about KSh32,084,908 in this project being the payment made over and above the actual- cost of works as assessed by Officers from the State Department of Public Works. Further, it was established that the project was re-advertised and an award made to Bami Investments Limited for its completion.

EACC Recommend Charges Against Senior County Officers

On 28th July, 2022, a report was compiled and forwarded to the DPP with recommendations that:

• Chief Officer for Roads, Public Works and Transport and the Chief Officer, Finance and Economic Planning be charged jointly with one count of abuse of office contrary to section 46;

• That they be charged with one count of fraudulently making excessive payment from public revenue contrary to section 42(2)(a);

• And that the Directors of Green County Construction Company and the Company, be charged with one count of unlawful acquisition of public property contrary to section 45(I)(a) as read with section 48(1) of the Anti-corruption and Economic Crimes Act, 2003 and two counts of fraudulent practice contrary to section 44(1) of Public Procurement and Asset Disposal Act, 2005.

On 23rd September, 2022, a report was compiled and forwarded to the DPP with recommendations that the Fund Account Manager and the members of the Tender Evaluation Committee also be charged with:

• Three counts of wilful failure to comply with the law relating to procurement contrary to section 45 (2) (b) and one count of Knowingly giving a misleading document to one’s principal contrary to section 41(2) as read with section 48(1) of Anti-Corruption and Economic Crimes Act, 2003;

• The Proprietors of Njakimje Enterprises be charged with one count of carrying on a business of a contractor without registration by the NCA Board contrary to section 15 (1) as read with section 15 (3) of the NCA Act no. 41 of 2011;

• And one count of committing a fraudulent act contrary to section 176(1)(i) as read with section 176(2) of the Public Procurement and Asset Disposal Act, 2015.

The EACC awaits the response from the DPP.