MYSTERIOUS EACC probes Sh1.2b PLANNING PS SAID STATIONERY ...

INDEPENDENT FRESH AND DIFFERENT

5

OCTOBER 2018 FRIDAY

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WHAT SONKO'S PROPOSAL TO UPGRADE PUMWANI MEANS

PAGES 12-13

MYSTERIOUS PLANNING PS SAID STATIONERY FIRM HAD NOT BEEN CONTRACTED TO SUPPLY ANYTHING

EACC probes Sh1.2b payout to one man

Era Two Thousand received millions from three ministries in eight months of 2016 PG 4-5

SHARON'S MURDER

Carry your own cross, Raila tells suspect Obado

ODM leader Raila Odinga has said he will not support Migori governor Okoth Obado who is charged with murdering Sharon Otieno. He said many people urge him to to stand with Obado, but added, "Justice should take its course." He called murder of a pregnant woman an abomination.

PAGE 6

ANTI-GRAFT FIGHT

Ruto: Do not politicise war on corruption

CHAMPION BULL FETCHES SH650,000 AT NAIROBI SHOW

AUCTION RING President Kenyatta at opening of the ASK Nairobi International Trade Fair at the Jamhuri grounds yesterday /PSCU

NO VIP TREATMENT

Obado still at KNH but transferred to ordinary ward

COUNTY BUDGETS

Taxpayers to foot Sh108 million for MCAs' special kitty

CONSTITUTION

Referendum calls split Jubilee Party in Parliament

The fight against corruption should not be politicised, Deputy President William Ruto has said. He said there are independent institutions empowered financially and staffed-tame graft. He said some politicians were trying to hijack the success in the fight against corruption.

PAGE 7

VOICES

TOSHITSUGU UESAWA

Japan helps to realise Big Four

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FRIDAY, OCTOBER 5, 2018

2

THE-STAR.CO.KE

PHOTO STORY

Chatur Group of Companies lawyer Evans Ondieki at a Nairobi hotel on Wednesday. He dismissed reports that businessman Madatali Chatur has put all his multibillionshilling property in the country on sale. Ondieki said the companies in different parts of the country are intact and generating much revenue to the economy

/COLLINS KWEYU

TRADE FAIR

Kenya tops Africa in science

and technology, Uhuru says

President urges the private sector to support research and innovation

STAR REPORTER

@ eStarKenya

President Uhuru Kenyatta yesterday expressed pride in Kenya's pioneering roles in science and innovation in Africa.

He said 25 per cent of all digital innovation startups in Africa come from and are based in Kenya. e President spoke at the launch of the ASK Show in Nairobi. He urged the private sector to promote support and promote Kenyan technological startups, adding that the government is also implementing policies that support innovations.

Uhuru cited e-registration of farmers and expansion of the statesponsored livestock and crops insurance scheme as some of the policies. e government targets increased fish production to bridge the demand-supply gap estimated to be 314 tonnes annually, he said.

It is also putting in place measures

that encourage the private sector involvement in post-harvest handling and value addition to maximise revenue in the agriculture sector. In this year's budget, agriculture has been Sh57 billion.

Uhuru said the government is promoting consumption of blended maize flour to encourage production of drought-tolerant cereals such as sorghum and millet. He underscored the importance of research and innovation to improve agriculture. Sh5 billion will be spent on research and Sh4 billion on the fertiliser subsidy programme.

e government is also keen to diversify Kenya's export basket to reduce inefficiencies in the value chain by 50 per cent by 2022. He reiterated his focus on the Big 4 agenda -- food security, affordable housing, manufacturing and universal healthcare.

"We have committed to ensure that by 2022 our nation will be food-

secure," he said, calling for prudent use of public funds.

More than 270 local and 56 international firms and institutions are holding exhibitions to showcase innovations and technologies to harness the potential of agriculture.

e trade fair, the biggest highlight of the Agricultural Society of Kenya calendar and the largest in Eastern African, has attracted exhibitors from across the world, including Tanzania, Egypt, Zimbabwe, India, Pakistan, Israel and China.

Uhuru toured many stands at the Jamhuri Show Ground, among them the affordable housing stand where public and private firms are showcasing model houses that can be afforded by Kenyans. He also visited the livestock exhibition and auction stand, and the Kenya Defence Forces exhibition. Agriculture CS Mwangi Kiunjuri, Nairobi governor Mike Sonko and ex-VP Kalonzo Musyoka were present.

STAR SURVEY

TODAY'S QUESTION

Should a referendum on constitutional amendment be held before 2022?

YESTERDAY'S QUESTION

Should DP William Ruto quit Jubilee?

YES 40%

NO 60%

HIT OR MISS

MAIZE FARMERS

Plan protests over unapid dues

PAUL MUCHANGI

Axed as Embu deputy speaker

North Rift maize farmers will protest against delayed payments in Eldoret on Monday. e NCPB owes them Sh3.5 billion for the maize they supplied nine months ago. e farmers yesterday met in Eldoret to demand their dues. Nandi Hills MP Alfred Keter and his Moiben counterpart Sila Tiren will lead the demos. See Page 9

Embu MCAs have removed assembly deputy speaker Paul Muchangi barely six months after he took the oath of office. Muchangi succeeded Steve Munene, who was also purged. is came barely three weeks after majority whip Margaret Kariuki was deposed for allegedly pitting Jubilee MCAs against their counterparts. See Page 26

Friday, October 5, 2018

NO COMMISSIONERS

Cohesion agency operations stifled

LUKE AWICH/ NCIC chief executive officer Hassan Mohamed yesterday expressed concern over the absence of commissioners, saying it is hurting the work of the agency.

He told the Senate National Cohesion committee that the National Cohesion and Integration Commission is unable to prosecute any case since the exit of eight commissioners. He said they have been relying on other government agencies, including the DCI and ODPP, to handle its cases. e term of the eight commissioners ended on August 12. A replacement process has yet to be initiated.

Initially, the team headed by former House Speaker Francis ole Kaparo were to leave office in August last year, having served a three-year term, but had their tenure extended by President Uhuru Kenyatta for one more year.

"Cases which require prosecutions have been hugely affected, as the secretariat alone cannot take people to court," Mohamed said.

He said, however, that they are having the cases prosecuted in courts even though they are not at the forefront. e NCIC accused the executive of deliberately attempting to create parallel agencies that duplicate their functions.

Mohamed singled out the National Steering Committee for Peace Building in the Interior ministry and the Cohesion department in the Office of the President as two bodies giving the commission unnecessary competition.

MOVED TO GENERAL WARD

Obado safe after stomachache scare

PATRICK VIDIJA/ Migori governor Okoth Obado yesterday was moved to the general ward at the Kenyatta National Hospital after being stabilised.

e county chief was rushed to the facility on Wednesday morning after he fell sick at an Industrial Area Police cell. Prisons boss Isaya Osugo had said the governor was not receiving special treatment at the Industrial Area remand.

Police sources said Obado had complained of severe stomachache and backache. He was admitted to the KNH private wing on Wednesday at 10am.

A source at the hospital yesterday said he had stabilised but was not discharged. "Only the personal doctor attending to him can tell if and when he will be discharged," the source said.

Further follow-ups revealed the governor, who is the prime suspect in the murder of Rongo University student Sharon Otieno, had been moved to Ward 6 as doctors monitor his condition.

Sharon was abducted in Rongo alongside Nation journalist Barrack Oduor. On September 4, her body later found dumped in a forest near Oyugis, Homa Bay. Obado was charged with the murder. He has denied involvement but was denied bail. He is to be detained at the remand facility until Monday next week.

Other suspects, among them Obado's personal assistant Michael Oyamo, have also been charged. Oyamo is said to have lured Sharon to her killers. Police are still pursuing the killers.

APOLOGY

Yesterday, we reported about an audit report presented in court, which showed how senior Kenya Power staff received bribes amounting to Sh900,000 each. e audit report was presented in case number 25, which affects former CEO Ken Tarus and eight others. Former MD Ben Chumo is not in any way included in this case, as we reported. Chumo is charged in case number 26 alongside other 15 managers regarding the acquisition of

transformers and award of contracts.

Friday, October 5, 2018

THE-STAR.CO.KE

National Assembly Majority leader Aden Duale and Majority whip Benjamin Washiali /FILE

3

CORRIDORS OF POWER

REDUCE NUMBER OF MCAs

Jubilee lawmakers sharply

split on referendum calls

Duale says party is opposed to push as Washiali, Kindiki and Kamanda back it

JAMES MURIMI

@TheStarKenya

Calls for a referendum to amend the Constitution has split Jubilee lawmakers, with Majority leader Aden Duale sharply disagreeing with Chief Whip Benjamin Washiali.

Among the reasons to amend the Constitution is reduction in the number of MPs to cut the wage bill. Thirdway Alliance leader Ekuru Aukot said the number of MPs and senators should be reduced from 416 to 194.

Opposition leader Raila Odinga said the referendum would be in line with his handshake with President Uhuru Kenyatta. Other possible reasons are introduction of a parliamentary-type system to end the winner-take-all system.

Duale said Jubilee is against a referendum. "We had a referendum in 2010 when Kenyans

proposed all these legislative positions. Somebody can't wake up from his village and try to slash the number of legislators," Duale told the Star on phone yesterday.

But Washiali and nominated MP Maina Kamnda said the Constitution has created too many positions that have become difficult to fund. "That [a referendum] is the way to go if we want to get Kenya back on track. The truth is the Constitution is very expensive to fund," Washiali said.

"As the Leader of Majority in the National Assembly and the official spokesperson of the Jubilee Party in Parliament, I have no brief from my party leader, deputy or the secretary general on any minimum or maximum amendments," Duale said. He was supported by Deputy Majority leader Jimmy Angwenyi.

In the Senate, deputy speaker Kithure Kindiki said a referendum was crucial to shield Kenyans from

heavy taxation to pay salaries. But Senate Majority leader Kip-

chumba Murkomen opposed the calls. "Those pushing to review the Constitution want to change the form of leadership to favour their political ambitions. Perennial losers should stop dragging us into reviewing the Constitution to suit them," Murkomen said.

Soin/Sigowet MP Kipsengeret Koros said the push was not in the best interest of the country. "This is just championed by a few power-hungry individuals. They are lying to Kenyans that we are overrepresented yet they only want to create government m positions in government for the big boys," Kikuyu MP Kimani Ichungwa said.

Supporting a plebiscite are MPs Patrick Mariru, Faith Gitau, Patrick Munene, Moses Kuria, Michael Muchira, Kinuthia Gachobe, Peter Kimari, Kimani Kuria and Joseph Tonui.

OPPONENTS SAY PUSH IS BEING USED TO CREATE POSITIONS FOR POWER HUNGRY POLITICIANS

CARTOON

POLITICAL GOSSIP

Who is doing what and where in the world of politics

IS President Uhuru Kenyatta (pictured) against referendum calls by some leaders, including some from his team? Well, one of the top leaders in the National Assembly was overheard saying the agitation by some leaders from Jubilee to amend the Constitution has not been well-received by the party leader. Instead, Uhuru is said to be pushing MPs to support his Big Four agenda. Could some powerful forces be engineering Constitution change through referendum? Well, only time will tell.

A former legislator in the last parliament who lost in the elections has gone completely broke. The woman has stunned her friends at the rate at which she is disposing her properties barely a year after leaving office. The once flamboyant youthful legislator has in a record two months sold her known, five-top-of-the-range cars at what her close friends call `throw away prices.' The last car, Corridors learnt, was towed away late last month. The travails of politicians can be unlimited.

SPURRING for political supremacy within Nasa parties seems to be spilling into Parliament. ANC's Butere MP Tindi Mwale is reported to have been axed from the powerful Public Accounts Committee and replaced by Homa Bay woman representative Gladys Wanga of ODM. Mwale who is an ardent supporter of Nasa co-principal Musalia Mudavadi was overheard lamenting in the precincts of Parliament why he was replaced in the committee with an ODM instead of ANC lawmaker. Well, a mole confided to Corridors that the whipcracking was choreographed by Minority whip Junet Mohammed (Suna East). This could open a fresh round of wrangles within the alliance led by Raila Odinga as members complain about sharing of slots in committees.

STILL in Parliament, a first time MP from a constituency in Central Kenya is in trouble. Corridors has learned that the legislator battered his wife and left her for dead. Luckily, the woman who was in a critical condition was treated in hospital and discharged. Questions are being raised over the lawmaker's integrity but it remains what caused the Mheshimiwa to resort to such brutality.

IS Central police station in Nairobi understaffed or are officers not performing their duties? Complainants seeking services are forced to queue for more than 30 minutes each waiting to be served or even heard. On Tuesday, a member of the public had to struggle through the numbness of holding on to a thief he had apprehended after stealing a bicycle within the CBD. Not appreciative of the situation, the officers simply told them to wait until it was their turn. There is only one officer receiving complaints and recording incidents in the Occurrence Book (OB) at any given time. Is that excellent customer service, bwana IG?

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THE-STAR.CO.KE

Friday, October 5, 2018

news

MYSTERIOUS PLANNING PS SAID STATIONERY FIRM HAD NOT BEEN CONTRACTED TO SUPPLY ANY

EACC investigates

paid to man in eigh

Era Two ousand received millions from the ministries of Interior, Youth Affairs as well as Planning in eight months of 2016

FELIX OLICK @olickfelix

The Ethics and Anti-corruption Commission has been investigating circumstances under which two companies owned by one businessman was paid Sh1.2 billion by three different ministries over a period of eight months.

EACC says it has uncovered large and unexplained cash transfers from the State departments of Interior, Youth Affairs as well as Planning and Statistics. Most of the money was paid in 2016/17 Financial Year when the country was gearing up for the last General Election.

Court papers obtained by the Star show that EACC has completed investigations into the suspicious payouts that it wants recovered.

e money was wired into the accounts of Era Two ousand Enterprises owned by one Evanson uo Waweru.

Sometimes money was transferred into the account up to five times on a single day.

It was during the same time that the second National Youth Service heist was also engineered. Public and Youth Affairs Principal Secretary Lillian Omollo, NYS Director

DATE

26 26 26 26 26 26 26 26 27 27 27 27 27

JUNE PAYMENTS

(2016)

Department for planning

Department for interior

AMOUNT

820.2 820.2 685.4

K

K

K

11.9 M

13.2 M

1.7 M

3.3 541.6 31.9 390.9 407.7 635.2 737.4

M

K

M

K

K

K

K

Friday, October 5, 2018

THE-STAR.CO.KE

5

YTHING

s Sh1.2bn

the Cabinet Secretary for Interior while Karanja Kibicho was the PS.

e Ministry of Public Service, Youth and Gender Affairs was headed by CS Sicily Kariuki.

EACC says it was alarmed by the

confession of then Planning and

ht months

Statistics Principal Secretary Irungu Nyakera that his department had never given any tenders to Era Two

ousand Enterprises. e anti-graft agency was stunned

by the ministry's response when it sought to be furnished with pay-

ment vouchers and tender docu-

ments regarding dealings with Era

firm Sh27.4 million in five tranches Two ousand Enterprises.

on June 26, 2016. On the same day, "We have exhaustively perused

the Interior ministry paid the firm our records and confirm that M/s

Sh5.5 million.

Era Two ousand Enterprises has

In four days between June 26 and never dealt with the State Depart-

June 30, the firm was paid a total of ment of Planning and Statistics,"

Sh241.7 million from the two State Nyakera told EACC on 31 August

Departments of Interior and Plan- 2017.

ning and Statistics in 32 tranches.

Nyakera was among 12 Principal

"The evidence gathered in the Secretaries dropped when President

preliminary investigations clear- Uhuru Kenyatta formed the current

ly demonstrate a typical case of Cabinet early this year.

corrupt dealing between the re- In his defence, Waweru said his

spondents and officials of the State firm had indeed supplied goods to

Departments of Planning and Sta- the three State departments and

tistics, Youth Affairs and Interior," EACC was conveniently twisting

EACC said in papers filed in court. facts.

EACC said that the huge transfers The EACC obtained orders to

were followed by cheque withdraw- freeze Waweru's two accounts at

als by the suspect and outward re- Barclays Bank, Queensway Branch,

mittances to other companies such with Sh1.2 billion on October 6,

as Blue Urban Limited.

2017. One account was in the name

of Era Two Thousand Enterpris-

REGISTERED

es and the other named Big Sale

Era Two ousand Enterprises was Chemicals.

registered in 1998 as a printing and

e freezing order was again ex-

stationery business.

tended for a further three months

e Star has established that top on April 6, 2018, to allow EACC to

officials from the three ministries, complete its investigations.

especially from procurement and " e amount involved here is pub-

finance, have been grilled by de- lic money and running to millions...

tectives.

Let the applicant be given time to

By April, about 17 people had been properly wind up its investigations

questioned at Integrity Centre.

and conclusion of this matter," ruled

eir accounts have also been co- Judge Hedwin Ong'undi on April 18.

vertly searched as EACC suspects the On June 20, 2018, EACC and the

officials received huge kickbacks. disputants recorded an agreement

Among those who were ques- by consent allowing the KRA to

tioned include the heads of Finance take Sh60 million from the frozen

and Procurement in the Ministry of accounts.

Interior.

e freeze orders were however

Also grilled was a Mr Maina, Chief lifted on July 9, 2018, as EACC said

Finance Officer in the ministry of it had concluded investigations

Special Programmes, and Samuel and was ready to forward the file

Chimoto, Senior Finance Officer in to Director of Public Prosecutions

the State Department of Statistics. Noordin Haji.

The Star could not establish "We have completed our investi-

General Richard Ndumbai among EACC Chair Eliud whether EACC has targeted to net gations. We shall be forwarding the

other top government officials and Wabukala and

any big fish.

report to the DPP in accordance

businessmen have been charged CEO Halakhe

At the time of the suspect transac- with Section 35 of the Economic

with economic crimes related to Waqo. Above,

tions, the late Joseph Nkaissery was Crimes Act," EACC told the court.

the scandals.

former Planning

According to EACC, Sh1.2 bil- PS Irungu lion was paid out in a record eight Nyakera / FILE

EACC SAYS IT WAS ALARMED BY THE CONFESSION OF THEN

months between January 1, 2016, and 31 August 31,2016.

PLANNING AND STATISTICS PRINCIPAL SECRETARY IRUNGU

e detectives were puzzled by how, for instance, the Department of Planning and Statistics paid the

NYAKERA THAT HIS DEPARTMENT HAD NEVER GIVEN ANY TENDERS TO ERA TWO THOUSAND ENTERPRISES

For more news on our website. Scan this quick response code using your smartphone.

27 28 28 28 28 28 28 28 28 28 28 29 29 29 29 29 30 30

1.2 3.6 4.1 636.5 15.8 26.4 7.9 7.1 25.8 15.9 17.5 245.6 611.8 611.6 2.1 2.3 7.9 35

MMM

K M M MM M MM K

K

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IN DEFENCE

EVANSON WAWERU

Lift freeze on my bank accounts, EACC has no case

I, Evanson Waweru, do hereby make an oath and state as follows: I am a businessman of sound mind working in Nairobi and internationally and I'm owner of Era Two ousand enterprises and big superstores registered in 1998

I would like my accounts at Barclay's Bank of Kenya Limited unfrozen. EACC by an application on October 5,2017, sought to have my accounts frozen for the first time in July 2017 for three months. When the period expired they came back and asked for a threemonth extension, which was granted. It expired in December last year.

I have been advised by my counsel... that under Section 56 ) of the Anti-Corruption and Economic crimes Act, Cap 65 Laws of Kenya, the duty is borne on the Respondent to move this Honourable Court in good time before the expiry of the said orders so as to seek for their extension.

e EACC in this case have not moved this Honourable Court seeking to have the orders granted on the 14th day of September 2017 extended at all.

It's now more than six months since the EACC commenced investigations on the subject bank accounts and the Respondent has never been able and/or willing to inform this Honourable Court or the Applicants the status of the investigations. I aver that the time granted to the Respondent to conduct investigations regarding the subject bank accounts is sufficient and as such I should now be allowed unrestricted access to my bank accounts.

Investigations need to come to an end, hence, the freezing orders should not be in place at the convenience of the Respondent.

e EACC in obtaining the orders on September 14, 2017, had indicated to the Court that the Applicants had irregularly and suspiciously acquired a sum of Sh1,173,234,004 from the said State Department of Planning and Statistics, Youth Affairs and Interior during the period between January 1, 2016, and August 31, 2016. is is not true.

EACC based on its suspicion on a letter dated on the 31st day of August 2017 from the Principal Secretary, State Department of Planning and Statistics which unequivocally stated that the State Department of Planning and Statistics had never dealt with my company.

I therefore ask the court to unfreeze my accounts because EACC has no case with me.

Excerpts from Waweru's affidavit

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