EACC boss Philip Kinisu fights off claims as new Sh246m payment emerges

Ethics and Anti-Corruption Commission Chairman Philip Kinisu at a press conference in Nairobi, yesterday. [PHOTO: WILBERFORCE OKWIRI/STANDARD]

NAIROBI: It was a case of history repeating itself yesterday as the hunter became the hunted when the chairman of the anti-corruption agency was caught in the saga involving NYS millions.

Philip Kinisu was forced to fight off conflict of interest claims after it emerged that a company associated with him and run by his wife had been doing business with the National Youth Service (NYS) at the time Sh791 million was lost by the service.

Yesterday, a payment ledger seen by The Standard shows that the family firm, Esaki Ltd, was paid a further Sh246 million by the Devolution ministry between March 2015 and June this year.

The amount was in addition to the Sh35 million the firm was paid for a tender it won in February 2014 to supply materials to dig boreholes in Kapenguria at the height of the scandal at the NYS.

The new revelations bring the total amount of the company's dealings with the Government to Sh281 million.

Yesterday, Mr Kinisu, the chairman of the Ethics and Anti-Corruption Commission (EACC), termed claims that the Sh35 million was part of the Sh791 million lost at NYS "outrageous" and propagated by corruption cartels.

Kinisu, who is also fighting claims of money laundering involving an organisation, which he chaired, defended himself saying the business was legitimate and happened long before he became chairman of EACC.

"The company was established and has lawfully been doing business since 2000 with both the Government and private sector clients. I have been a director in it since inception until April, 2016, when I ceased to be a director on account of my commitments at EACC," he told reporters at a press conference in Nairobi.

The new EACC chairman maintained he would not resign because doing so would set a dangerous precedent given that the allegations were "unsubstantiated".

This came a day after EACC revealed an independent team had been formed to investigate the allegations linking Kinisu to the NYS scam.

EACC said the decision to investigate Esaki Ltd was arrived at on July 11, 2016, at a meeting called after a preliminary probe disclosed the firm had indeed transacted with NYS at a time it was being investigated over the Sh791 million saga.

But Kinisu described the allegations, which could potentially undermine his ability to lead an agency investigating his family business, as a case of "corruption fighting back".

He becomes the latest in a long list that includes former EACC chairmen to claim that cartels were out to finish him.

Kinisu explained that his company responded to tenders, won business, preformed the respective tasks and was paid for work done.

"All contracts between the company and NYS were won and performed prior to my appointment as chairman of EACC," he said, adding that there was no law that prevented any Kenyan citizen or company from doing business with a Government institution.

He dismissed claims of conflict of interest as EACC probe claims of impropriety at NYS.

The EACC boss also dismissed money-laundering claims against the African Population and Health Research Centre (APHRC), a non-profit research corporation, where he is also chairman.

He joined the board of APHRC in April 2013 and became the chairman in November 2015, two months before he took up the chairmanship role at EACC.

A preliminary report by the Non-Governmental Organisation Co-ordination Board had recommended that the centre be investigated for money laundering, non-compliance with Government regulations and lack of accountability for donor funds.

"All the centre's funds have been audited by internationally acclaimed auditors since inception and there are no queries," he said.

Kinisu accused the media of becoming "angels of the devil" by siding with his accusers. "Corruption is complex and powerful. Money changes hands and the truth is either overlooked or distorted," he said.

The EACC chair has accused Bunge la Mwananchi, a civil society group, for being behind his woes after he refused their advances to "negotiate".

Bunge la Mwananchi wrote to his firm in May 2016 seeking information on various allegations but the firm did not respond because it felt the group did not have authority to require such information.

"After several unsuccessful attempts to obtain information and in the words of their SMS message, awaiting honest negotiations, they readdressed and delivered the letter to EACC," he said.