EACC probing ‘absurd’ payment of Sh275m to 9 companies by Nairobi County for goods not delivered

NAIROBI, Kenya, Jun 30- Nine companies that received a whopping Sh275 million from Nairobi County Government as payment for work not delivered are on the spot, with the Ethics and Anti- Corruption Commission (EACC) now setting their sights on them.

Of the 9, investigations have revealed that seven are based in Nairobi’s Eastleigh area.

Already, the Nairobi County Chief Officer in Charge of Finance Halkano Diida has been questioned by the EACC.

“The Commission is undertaking investigation into allegations of irregular award of tenders for the supply and delivery of food and non-food items for disaster emergencies o mitigate the effects of Covid-19 pandemicto 127,500 households in informal settlements in Nairobi,” the summon signed by the Deputy head of Forensic Investigations John Lolkoloi reads.

Shahidi News has established that four of the companies and two directors were linked to a multi-billion procurement fraud at the County in December last year.

The scandal was flagged off by the Financial Reporting Centre (FRC).

EACC initiated the investigations after a letter from the Nairobi County Assembly Minority Chief Peter Imwatok, who also copied the Office of the Director of Public Prosecutions (ODPP).

In his letter, he said the firms in question are owned by some members of the Nairobi County Assembly and staff.

Others, he said are their proxy companies, in an explosive dossier.

He alleged that the payments were for fictitious food and other essential deliveries to mitigate effects of Covid-19 pandemic within the County.

But Imwatok said there is no food that was supplied to the county or distributed to the most vulnerable.

According to the payment vouchers, the firms allegedly supplied among other things rice, sugar, maize and wheat flour, bread, mineral water, sanitary towels, blankets, mattresses and basins.

“It is absurd that the taxpayers’ money amounting to over Sh27million shall be paid to companies belonging to Members of County Assembly or their proxies for either services and or goods that were never supplied,” he said.

All this is alleged to have been done through the help of high ranking members of the Nairobi County Assembly.

Documents seen by Shahidi News indicate that Tsuma Trading Company Limited was paid Sh82.6 million, Flexilease Limited (Sh89 million), Msafiri Feeds Limited (Sh39 million) and Throughout General Supplies Limited (Sh17.7 million).

Also in the list includes Asmara Ventures Limited (Sh27million), Capital Waste Management Limited (Sh10million) and Daasanach Construction Limited (Sh9million).