Former EACC chief executive officer Halakhe Waqo on Friday defended his role in a firm that got a Sh347 million tender with Kemsa, saying he only guaranteed the supplier.
The former Ethics and Anti-Corruption Commission CEO was entangled in the Sh8.7 billion Kemsa PPE scandal over his links to the furniture dealer trading as Aszure Commercial Services.
The firm, formed in 2017, got a tender for 50,000 50-pack face masks without a letter of award from the medical supplies authority.null
Members of the National Assembly Public Investments Committee chaired by Mvita MP Abdulswamad Nassir hold that the tender was flawed, citing irregularities in the procurement.
Aszure director Zubeda Nyamlondo told lawmakers in February that Waqo signed a guarantee for financing by the First Community Bank.
The firm got a state contract for Covid-19 emergency equipment despite its limited financial capacity and inexperience in medical supplies.
MPs questioned how the former anti-corruption boss could provide nearly 100 per cent financing and claim the business was not his.
Waqo rebuffed the assertions saying he is not a shareholder or director at the company adding that the firm was introduced to him by an officer at the bank.
He said he was later approached by the directors of the firm whom had secured an order – through a commitment letter – to supply KN95 masks.
Waqo said he was approached to engage in partnership for financial and resource mobilization for Aszure to supply the items.
Adding that their happened to share a bank with the firm, “they (FCB) were comfortable with his guarantee and providing securities.”
He said the bank loan was guaranteed by two properties – a 13-acre parcel in Isiolo, and another in Nairobi – which is not registered in his name.
But MPs questioned him on whether he understood the gravity of the taint in the Kemsa contract, stocks which the medical supplies agency is yet to dispose.
MPs Nassir, Ruaraka’s T.J Kajwang, Wajir North’s Ahmed Ibrahim, Lagdera’s Mohamed Hire, Embakasi East MP Babu Owino, Wajir East MP Rashid Amin, were present. The committee has been conducting a probe on the Kemsa supplies.https://958e8ae41adacaedf3950aa21cdd490e.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html?v=1-0-38
Kajwang called out the former anti-graft boss for not citing a letter of award, yet he’s worked for the government.
“I haven’t seen you cite letter of award…I thought you’d want to see letter of award to question the integrity of the business,” he said.
“I would have expected them to show you letter of award much as you won’t be concerned about the nature of procurement. Did you confirm if there was a letter of award?”
The lawmaker, citing that some people followed the law, sought answers on whether Waqo found out the probity of the contract.
Waqo said he was engaged at the point of looking for finances and committed to support the project.
“I didn’t interact beyond the bank. I assumed an organization as big as Kemsa would not skip processes,” he said.
But Kajwang’ said that so long as the business springs from a tainted process, it taints everyone involved.
“You were going to make an interest; didn’t it disturb you to find out prima facie that you’re working with people who are not satisfying the law?”
“You’re not an ordinary person. First thing to hit you should be about integrity of the process? As state officer, did it hit you to what extent this business was clean?” Kajwang asked.
Waqo defended himself saying he wasn’t a state officer at that time. “ I was a private citizen. I relied on communication between the bank and the entity. I didn’t see any reason to doubt.”
MPs, however, cast doubt on his explanation that he had no knowledge of the company he guaranteed almost to the last cent.
“I was coming to be a signatory. There are minutes of the organization which pulled me to be a signatory,” Waqo explained.
Rashid said that by financing was almost 100 per cent of the value, the former anti-graft boss stood to gain more.
“They (Azsure) were relying on your financial strength to do this business,” the lawmaker said.
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