EACC: Only Sh51 million, not Sh1.18b, was lost in Kilifi

Kilifi Governor Amason Kingi has protested the delay in the probe into a multi-million shilling fraud at his administration.

But as Kingi was speaking in Kilifi, the Ethics and Anti-Corruption Commission (EACC) released a statement from Mombasa saying suspects in the Sh51 million electronic banking fraud will be charged in two weeks.

An official of the embattled county government also released a new statement discounting reports that Sh1.18 billion had been lost in recent months.

And yesterday, EACC also concurred with this assessment, indicating that available information shows that only Sh51 million was lost through the manipulation of the Integrated Management Financial Information System (Ifmis) between September 29 and October, with the money being wired into the bank accounts of five Nairobi based companies.

EACC deputy CEO Michael Mubea told a forum in Mombasa yesterday that the probe is nearing conclusion.

“We received a report that Sh 30 million was lost at the county but our probe shows that it is Sh51 million. The probe is at an advanced stage and suspects will be arraigned in court in two weeks,” Mubea said, adding that reports that Sh1.18 billion had been lost are inaccurate.

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Verified payments

Last evening, Kilifi County Finance Chief Officer Ben Kai Chilumo said in a signed statement that Sh51,569,775, not Sh1.18 billion, was stolen.

“We came to learn that the allegations of the loss of Sh1.18 billion were based on a list of payments made by the county government. We have verified these payments and are all genuine transactions made by the county government for goods and services rendered,” said Mr Chilumo.

“Some of the payments are for taxes withheld and paid to the Kenya Revenue Authority (KRA), while some are monies paid to our project retention account held at the Diamond Trust Bank.”

Mr Chilumo also said he has verified that Sh340 million of the Sh1.18 billion were inter-account transfers between Kilifi County bank accounts and Central Bank of Kenya.

Speaking at Vipingo in his county, Kingi said despite the county government efforts to furnish EACC with names of companies and directors whose companies benefited from the funds, no one has been arrested.

Kingi said the county government had informed the EACC, Central Bank of Kenya and Anti-Banking Fraud Unit of the irregular transfer of funds on the October 10, no progress has been made more than a month later.

“We know the names of the five companies who stole our money. We have given them names of the directors, they have their account numbers. But the strange thing is no one has been arrested. We reported this matter to the relevant agencies when we received information that money had been irregularly wired from the county government account on October 10, but since then, the investigations have been dragging,” the governor said.

Governor Kingi has named the six firms Makegra Supplies, Zohali Supplies, Kilingi Investment, Leadership Edge Associates and Daima One Enterprises.

The governor said his administration will not tolerate corrupt officials and stated that any one who will be linked to the loss of money from the county will face the law

He said the county government would be transparent in its affairs and furnish any materials needed to bring to book those who planned to steal public funds.

Suspended officials

Last week, 10 officials were suspended after the discovery that their passwords were used to siphon Sh51 million from the county’s account at the Central Bank of Kenya into the accounts of six firms based in Nairobi.

Among the suspended officials is Dr Owen Baya, the alleged whistle blower who alerted the county secretary.

Early in the week, the 10 testified to the Kilifi County Assembly in camera, but an official who attended the grilling said they claimed they were manipulated by an official within the county government to transfer the money into the accounts of the six Nairobi based firms.
All the investigating agencies –  the CID, Banking Fraud Investigation Department and Ethics and Anti-Corruption Commission – are all involved in the probe.

On Thursday there was widespread demonstration in Mtwapa and Kilifi towns over the scam, with protestors claiming that suspension of the 10 junior officials was a scheme to protect high ranking government employees behind the scam. Yesterday, Mubea said it will carry out a total audit of the Ifmis. He said the audit seeks to identify and seal the loopholes used to siphon public funds.

Meanwhile Deputy Chief Justice Philomena Mwilu said special law courts have been established to hear corruption cases back-to-back without adjournment. Justice Mwilu defended the Judiciary against accusation of issuing lenient sentences to corrupt individuals.

“This year alone EACC filed 21 cases and had 17 convictions. This shows progress in the war and that its doing a good job in terms of gathering enough evidence,” said Mwilu.