The Ethics and Anti-Corruption Commission (EACC) has arrested six former government officials and private sector players over an alleged Sh330 million loss linked to a stadium equipment contract awarded ahead of the 2018 African Nations Championship (CHAN).
Among those arrested on Tuesday is former Principal Secretary for Sports Development Peter Kirimi Kaberia, who is expected to be arraigned alongside five other suspects at the Milimani Anti-Corruption Court in Nairobi.
The case stems from a contract, then valued at about Sh1.5 billion, awarded in 2017 by the State Department for Sports Development to Auditel Kenya.
The Spanish-linked firm had been contracted to supply and install security, access control, communications, audio-visual and pitch-lighting systems at several stadiums as Kenya prepared to host CHAN 2018.
According to EACC, investigators established that the company received an advance payment of USD3.15 million — approximately Sh330 million — despite the procurement allegedly failing to comply with the Public Procurement and Asset Disposal Act, 2015.
“The company subsequently failed to fulfil its contractual obligations, resulting in the loss of KES 330 million in public funds,” EACC said in a statement.
The anti-graft agency further alleges that the money was transferred through several entities in an attempt to disguise its source before being channelled back into Kenya.
Those arrested alongside Kaberia are Stephen Njoroge Muthuma, a Senior Principal Finance Officer at the Ministry of Education; John Kiende Ruga, a Senior Superintendent Engineer at Sports Kenya; Samuel Mbaa Njoroge, a tax adviser and partner at Taxwise Africa Consulting LLP; and former State Department for Sports Development Principal Accountant Enock Ondwari Onditi.
Also arrested is Anthony Mwangi Kimathi, a former employee of Instalaciones Inabensa, S.A.
EACC said its investigation file had been forwarded to the Director of Public Prosecutions, who approved charges against public officials, company directors and other individuals linked to the transaction.
The suspects are expected to face charges including conspiracy to commit an economic crime, unlawful acquisition of public property, money laundering and abuse of office.
EACC has also directed four other suspects to report to Integrity Centre or the nearest commission office for processing.
They are former State Department for Sports Development Director of Administration Harun Komen Chebet; Auditel Ingenieria Y Servicios director Marcos Gonzalez Puente; former Football Kenya Federation Audit Committee member Kitheka Muema; and automobile business consultant Ephraim Muchangi Kinyua.
The commission said it is separately pursuing civil proceedings to recover public funds and assets allegedly acquired through proceeds of crime arising from the deal.
“EACC remains committed to protecting public resources and ensuring that public officers and other persons entrusted with public resources are held accountable when they abuse their positions for private gain,” EACC chief executive Abdi Mohamud said.
Kenya had been scheduled to host the 2018 CHAN tournament before the hosting rights were withdrawn, with Morocco later staging the competition.
Follow our social media pages for breaking news updates, in-depth stories and videos.
news@nairobilens.ke
