NAIROBI, Kenya, Jun 24- Three Kenyan investigative agencies are looking into a gravy train involving a top manager at the Kenya rural roads agency (KERRA).
Investigations have revealed an intricate ploy to defraud the Kenyan taxpayer hundreds of millions of shillings through inflated contracts involving Chinese and local road construction companies that are awarded mouthwatering road construction deals and in exchange provide kickbacks paid in cash or through construction of high-end real estate in various parts of Nairobi.
On June 22, the Asset recovery agency obtained orders from high court freezing the assets of the main suspects Margaret Wanja Muthui who is the deputy supply chain manager at KERRA.
Esther Wagio Njunge who works for Safaricom PLC as a regional sales manager.
The Directorate of Criminal Investigations (DCI) is looking at preferring charges of abuse of office and money laundering against the two through Light House trading company limited.
The Kenya revenue authority (KRA) is also looking at calculating tax arrears on the over Sh1 billion worth of assets laundered by the two and slapping them with a fine.
The investigation has for the first time revealed how proceeds from the lucrative road tenders are laundered through proxies who invest on behalf of corrupt government mandarins. In the case under investigation and as per court documents filed in the anti-corruption economic crime court under certificate of urgency, the documents paint a picture of the intricate theft of public resources through government tenders.
Wanja works for the ministry of transport and infrastructure.
Until her transfer to the ministry of transport in February 2021, she was the deputy director and the acting director procurement at Kenya Rural Roads Authority earning a monthly gross salary of about Sh400,000.
In October 2019, investigations revealed that Wanja had purchased 11 units of luxurious signature apartments in Kileleshwa at the cost of Sh300 million which she paid for in cash.
The payments were made between July and September 2019. The large cash payment was made hurriedly due to the currency demonetization process which Kenya’s central bank was undertaking at the time.
On May 31, 2019, the Kenyan government had effected a major economic change by demonetizing the old Sh1000-shilling bank note.
The government issued a 122-day notice ahead of full withdrawal of its old 1000-shilling bank notes out of circulation by October 1, 2019.
Further investigations revealed that Wanja had enrolled the services of her nieces, Esther Wagio Njunge who works at Safaricom PLC Kenya limited as a regional sales manager and Alice Wacuka Njunge to register a company under the name Light House Trading Company which was used to purchase the houses.
The company had initially been registered by her brother-in-law Joseph Njunge Mathu and her sister Joyce Wanjiku Njunge, who later resigned as directors of the company and passed on its directorship to Alice Wacuka Njunge and Esther Wagio Njunge.
Wanja also enlisted the services of her elder sister Grace Nyambura Nderitu and her two daughters Mercy Wambui Nyambura and Cynthia Wanjiku Nyambura to register for properties on her behalf.
The properties include 3 units at a luxurious apartment in Kileleshwa.
Further investigations revealed that Wanja had used her sister Joyce Njunge Mathu to construct a mixed-use commercial building in Githurai – Ruiru sub county Kiambu County.
Wanja is accused of being involved in high level corruption which involves awarding Chinese road construction companies through favours.
She is also accused of using her position as deputy director procurement to amass wealth during her tenure.
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