Two PSs not cleared by KACC

By Ben Agina News Editor

Two Permanent Secretaries reinstated by President Kibaki this past week were not cleared by a high-profile Kenya Anti-Corruption Commission investigation, we can reveal.

Kiome

The document, titled "Report on the Importation and Distribution of SGR (Strategic Grain Reserve) Maize" and labelled "Confidential" has fingered Agriculture PS Romano Kiome and his immediate former Special Programmes colleague Ali Mohammed — who were suspended in the wake of a damning PwC report. The report also picks out Finance PS Joseph Kinyua for blame.

On satu, questions were being raised as to why President Kibaki, who received a copy of the report earlier, chose to quietly reinstate Kiome and move Ali to the Ministry of Environment, without making known the report’s findings.

Kiome, Ali, Office of the Prime Minister PS Mohammed Isahakia and Administration Secretary Caroli Omondi were among those suspended three months ago pending investigations on the alleged maize scandal.

Isahakia and Omondi have since resumed their duties.

Even as KACC absolved Isahakia and Omondi, it called for ‘administrative’ disciplinary action against Kiome, Mohammed and Kinyua on account of ‘negligence’.

However, KACC notes, there is no evidence to sustain criminal charges against the perpetrators of the irregular sale of the subsidised maize.

KACC observed that the three PSs had failed to communicate their reservations about the viability of subsidised maize scheme (SMS), thus abdicating their responsibility to offer technical and professional advice on the scheme’s implementation.

Kiome, Ali and Kinyua — who are the three trustees of the SGR by virtue of their positions — are accused of failing to take action even after receiving complaints on the scheme’s mismanagement from the chairman of the Cereals Millers Association.

Isahakia

KACC notes that the Agriculture, Finance and Special Programmes PSs had primary responsibility for the scheme but failed to monitor its implementation.

"Specifically, the Special Programmes PS kept authorising the release of SGR stocks as per the National Cereals and Produce Board (NCPB) requests without considering or assessing the impact/success of the earlier releases in achieving the Government objectives," the report says.

Further, the Finance and Agriculture PSs had serious reservations on the viability of the scheme but took "a back seat" on its implementation.

A study of reports from the Agriculture ministry reveals that some staff there (Dr Wilson Songa, Dr Kiome and Mr Duncan Marigi) were involved in issuance of letters to NCPB seeking favours for allocation of the subsidised maize.

KACC also observed that a major loophole was created in which unscrupulous traders connived with NCPB managers (Prof Misoi, Mr Boit, Mr Langat) to allocate SGR subsidised maize.

For instance Mr Jackson Kibor, through his firm, Mafuta Ltd, which is not in the business of milling was allocated maize which was later transferred to Mombasa Maize millers.

Eldoret grains

Equally, former MP Barre Shill, a director with Interglobal Logistics Company, a transport company, was allocated maize that he later transferred to Eldoret Grains Ltd.

The report notes that although Dr Isahakia was a founder member of Interglobal, he was not involved in the distribution of maize since he was not a SGR trustee.

"There is no evidence to show that Dr Isahakia influenced the allocation of maize to Interglobal. Further, there is no evidence to show Dr Isahakia benefited from the facilitation fee paid to Mr Barre Shill," noted the report. KACC thus recommended the removal of Shill from the NCPB Board. On the procurement process of the imported maize, KACC observed that at first there was confusion on the procurement method to apply.

The report noted that all the maize was imported through direct procurement method and prices were negotiated by the negotiation committee constituted by the procuring entity.

"In our view, the importation of maize was done above board and in the best interests of the country," said KACC. However, the distribution of both the imported and SGR maize was marred with irregularities.

Public Accounts Committee (PAC) chairman Dr Bonny Khalwale told The Standard On Sunday that he was shocked that the two PSs were reinstated even when the KACC report had not cleared them.

Kirui

"They can run but they cannot hide... for justice to be seen to have been done. The President must now act on Higher Education Minister William Ruto, PS Ali and former NCPB Managing Director Gideon Misoi," said Khalwale.

The Kenya National Commission on Human Rights (KNCHR) said it was unfortunate that the two PSs facing corruption allegations had been reinstated yet the report had not cleared them. "The two should not only have remained on suspension but also prosecuted," said commission’s Chairperson Florence Jaoko.

"Investigation reports on the corruption allegations have not been made public or tabled in Parliament and we demand that this be done," said Mars Group Chief Executive Officer (CEO) Mwalimu Mati. Nairobi lawyer Haroun Ndubi said there was no harm in making the investigations public, unless they were simply meant to hoodwink the public.

Prof Karega Mutahi, who had been suspended over misappropriation of Free Primary Education cash was moved from Ministry of Education to Local Government while Sammy Kirui who was suspended over the Sh300 million cemetery scandal was fired.

Although similar investigation reports on the Free Primary Education and the Sh300 million scandal were handed to the President, details of their contents remain under wraps.

—Additional reporting by Stephen Makabila