A failed attempt by a group of traders to use a company to win a tender at the Kisumu County Government may have led to the fallout between MCAs and the executive over the Sh280m Ward Development Fund, The Standard On Sunday has established.
The alleged misappropriation of the funds sparked battles between the assembly and the executive, with administrators of the fund claiming they were being targeted by MCAs after they blocked a company associated with some of them from getting a Sh175 million tender to construct offices in each of the county’s 35 wards.
It is believed the fallout may have resulted in the recent alleged kidnapping of Kisumu West MCA Paul Okwiri and destruction of a home and property worth millions of shillings belonging to fund administrator and Chief Officer for Economic Planning George Anyonga.
Mr Okwiri claimed he was targeted because of his bold stand on alleged misuse of funds. The MCAs claim the fund had been embezzled and want the signatories investigated. The MCAs even formed an ad hoc committee chaired by Deputy Speaker Pamela Omino to investigate the alleged scam.
At one stage two weeks ago, police had to use tear gas to disperse rowdy youths who had stormed the assembly hall to stop MCAs from debating the matter, after word went round they planned to impeach Governor Jack Ranguma.
Mr Anyonga, however, maintains the Sh105m out of the Sh280m allocated to the county was safe and was being spent accordingly.
He says the remaining Sh175m had not been released by the Controller of the Budget. He accused the MCAs of issuing misleading statements that the entire amount had been wired to the fund’s bank accounts.
Last week, the Directorate of the Criminal Investigations and the Ethics and Anti-Corruption Commission moved in to investigate the alleged embezzlement of the ward development fund.
Four of the five signatories to the ward fund account were quizzed for hours by the officers. Ten MCAs and a senior County Assembly officer were also questioned over the fund. The officers said they were investigating claims that part of the Sh280m had been misappropriated.
A member of the investigating team, who asked not to be named because of the sensitivity of the matter, said they were investigating the people behind a mysterious company registered only a few days after the executive advertised the tenders and which was later disqualified by fund managers for alleged ‘glaring irregularities’
Details have emerged to the effect that some MCAs and assembly officials used proxies to form the company to seek the Sh175 million tender to construct administrative offices in all the county’s 35 wards.
Mr Anyonga claims those behind the company are fighting back after it was disqualified from bidding.
The company raised eyebrows after its directors claimed it was an affiliate of a South African Company that MCAs had visited.
But the South African firm has since denied having any affiliate in Kenya and was not aware of any bid for the tender. In a response to inquiries by The Standard On Sunday, one of the company’s executives, Camalynne Botes, confirmed a delegation of seven from the Kisumu County Assembly visited the firm in South Africa on November 12, 2015, but denied having struck any deal for the tender.
“We have no affiliated company or partner in Kenya. Any additional information you could provide regarding this matter would be most welcome as it is of great concern to us,” said Botes.
Botes said they had not discussed with the delegation any deal concerning the tender to construct the ward offices.
She added: “Unfortunately none of our records shed any light on the matter as no party indicated any intention to set up an operation in Kisumu.”
Yesterday, Anyonga said he ran into trouble with the assembly after the newly-registered firm was disqualified after it failed to comply with the tender regulations.
