Sakaja’s ruthless cartel that siphoned development money unmasked
Nairobi residents are still in shock after learning that the county spent zero amount of money in the first quarter on the current financial year while at the same time found it a priority to splash Sh178 million on domestic travel.
The Controller of Budget Margaret Nyakang’o helped Nairobi residents understand why the county has not been experiencing any form of development under the current regime.
The county unforgivingly spent all the Sh3.45 billion during the three months on recurrent expenditure alone. This was mostly on unnecessary workshops aimed at accumulating allowances and payments made to proxy firms indirectly owned by a vicious cartel formed by Governor Johnson Sakaja.
The damning revelations came a few days after an ad hoc committee at the county assembly found out that the Kenya Revenue Authority is still collecting revenue illegaly on behalf of the county.
Our investigations reveal that Finance Executive Charles Kerich, Finance Chief Officer Asha Abdi, County Assembly speaker Ken Ngondi, Head of Procurement Richar Mogoko, former South C MCA Osman Khalif and other senior officials have choreographed a special means through which they can siphon funds.
While Governor Sakaja has appeared in public launching projects and pronouncing allocation of funds to such projects,the reality as reflected in accounts books at City Hall speaks otherwise.
According to the Controller of Budget,the spending was 73.7 per cent of all the funds authorised.
During the period, Governor Sakaja spent 176.8 million on domestic and 11.9 million on foreign travel, she added that the Nairobi boss also spent 51.8 million on fuel alone, and Sh28 million on hospitality while at the same time, nothing was spent on development expenditure despite an allocation of Sh14 billion.
The spending was 73.7 per cent of all the funds the Budget controller authorised alluding to the uncontrolled impunity at the county.
“Analysis of expenditure by economic classification indicates that the County Executive spent Sh2.56 billion on employee compensation and Sh452.81 million on operations and maintenance. Similarly, the County Assembly spent Sh139.82 million on employee compensation and Sh294.98 million on operations and maintenance,” says the report.
The CoB report means city residents citizens have every reason to worry after being subjected to starvation of development initiatives through the three months
While the CoB notes that the county boss prioritised funds they got on paying salaries, allowances and operational expenses of offices,the reality is that most of it was spent of ghost payments and the endless trips the governor is making coupled with the uncontrolled number of workshops being done as captured in domestic travel expenditure,it is evident that there is a deliberate attempt to divert county funds.
It’s clear that Sakaja has violated the law that requires a minimum of 30 percent of the county government’s budget be allocated to development expenditures. Still, Sakaja has very little allocation for growth as he continues to splash on consumption.
This skewed spending implies that poor access to healthcare that sees the sick in some regions walk long distances to access hospitals, impassable roads, and poor access to early childhood development education will persist.
It’s an indictment of the governor who campaigned on the growth platform but has embraced the bad practice of paying lip service to development.
Some lobby groups are already questioning why the county assembly has yet to move an impeachment motion against the governor when their is more than enough reason to impeach him.
The governor, through Asha and Martha Wambugu who is a finance officer opened three accounts at Cooperative Bank without the approval of the Assembly as per the PFM Act where revenue diversion is done.
It is worth nothing that before the end of the 2022/2023 Financial Year, the national fund had released all the funds owed to counties in one batch and even gave counties cash for the first quarter of the 2023/2024 financial year.
Our investigations can reveal that the excessive looting is alresy causing alot of commotion and disagrements at City Hall
It has already emerged that Kerich and Asha Abdi who have collaborated in many irregular tender deals are now in a rare cold war with Kerich strategically trying to pass the mess to Asha Abdi.
Governor Sakaja who has the remote control on the other side is watching from distance.
For starters, Asha has more immense and well oiled cartel machinery within the county and the national government while Kerich still maintains his low profile despite engaging in multi-million cartel deals.
An internal memo in our possession indicates how Kerich uses the gaps in the PFM regulations to evade accountability and instead pass the ball to the next available victim.
In an internal memo referencing management responses to the Auditor General questions, Kerich seems to be passing the ball to Asha and chief officer revenue administration.
The memo dated 8th December,2023 is about the financial malpractices for the 2022/23 financial year with most involving events that happened when the current administration took over in August 2022.
Kerich in the memo highlighted a number gaps in statement answers that had earlier been given to the auditor general
The auditor had mentioned that one accounting officer, Tony Michael Kimani had a letter dated 31st February 2023 and the letter for Ms Maryan Dubow Dahir was not provided for audit review with the two also linked to massive looting and running of proxy companies.
Statements on County Executive Bankers did not include Chase Bank and HFC as reflected in the financial statement raising more eyebrows.
The auditor also outlined cases of possible impunity where the financial statement reflected cabinet membership, however, the County Assembly approval was not provided for audit review. Further, the Acting County Attorney letter of acting appointment was provided.
The county is said to have give. Wrong statements of receipts to cover up for fraud.
The county has been struggling to meet its revenue targets with key officers among them Finance Executive Charles Kerich and his Chief Officer Asha Abdi on the spot.
The escalating graft situation got worse when it was established that some senior officers were chased away by the bank over an unexplained amount of money they wanted to deposit against banking regulations. The officers failed to prove the source of their money and their efforts to have governor Sakaja who was part of the deal to intervene failed.
Detectives are also pursuing similar cases where huge amounts of money are being wired direct to county officials from suspected corruption dealings.
It also emerged that a contractor by the name Mohammed Ibrahim Siyad who owns rogue and unqualified companies like Buko investments is at the centre of the deal that saw the bank turn away the senior county officers.
Other companies like Milbo Lakes Enterprises owned by Millicent Ndinda Ngumbi are also reaping big from dubious payments at City Hall.
The MCAs who have all the details want the EACC and DPP to quickly act on the matter.
The development comes at a time when the Director of Criminal Investigations(DCI)Mohamed Amin has publicly questioned how nine other companies were paid millions without proper procedure.
The DCI through the then head of investigations Bureau at the DCI headquarters David Birech, wrote to Sakaja demanding a list of tender documents, issued to nine companies suspected to have been used to siphon millions from City Hall.
The nine companies are Brigit West Limited, Future Link Limited, AR Pharmaceuticals Limited, Larsen Investment Company, Burasha General Suppliers Limited, Tweem Limited, Cloud Mobile Technologies Limited, Istanbul Investment Limited and Ramecon Engineering Limited.
The DCI is still investigating requisitions by the user department, award contracts, delivery and inspection reports and all local purchase orders.
The escalating malpractices also include MCAs who are in the mix and working secretly with Kerich while some are siding with Asha.
Among them is budget committee chairman Wilfred Odalo who collude with some county staff and other suppliers on matters hot-air dealings.
The staff include, Kevin Musamia, he was employed as a clerical officer after working for long as an attachee under roads and public works.
Kevin, who is known to be an extravagant spender on women’s life luxuries indirectly owns a company by the name Felista Queen Akosa that is managed by his mother.
Ambrose Musau, Vivian Mavua, Beth Muthoni, Denis Muia, Brian Oyando, one who does work plans for the county, Richard Mogoko the head of procurement who has gained massive from corruption dealings, his main clients are suppliers and contractors from the Somali community and a few Kikuyus, he is currently building state-of-the-art-house.
Others are Stephen Mafura, easy panty remover Mary Maina Wangui girlfriend to former acting county secretary Jairus Musumba, Peter Gitau from procurement, Martha Wambugu among others.
Detectives are also pursuing similar cases where huge amounts of money are being wired direct to county officials from suspected corruption dealings.
It also emerged that a contractor by the name Mohammed Ibrahim Siyad who owns rogue and unqualified companies like Buko investments is at the centre of the deal that saw the bank turn away the senior county officers.
Another contractor Hawa Ibrahim with her accomplice Maria, Milbo Lakes Enterprises owned by Millicent Ndinda Ngumbi are also reaping big from dubious payments at City Hall.
The MCAs who have all the details want the EACC and DPP to quickly act on the matter.
The development comes at a time when the Director of Criminal Investigations(DCI)Mohamed Amin has publicly questioned how nine other companies were paid millions without proper procedure.
The massive corruption at City Hall has become so pronounced and some MCAs are questioning the role of independent institutions that have been investigating officers especially at the Finance and Procurement Departments.
The county executive is also under scrutiny for misuse of bank overdrafts that do not meet merit from the county assembly and as required by the PFM Act.
Those on the spot over this are Charles kerich, some county assembly leadership among others.
The county assembly is now increasingly getting convinced that governor Sakaja has failed to demonstrate capacity to run the city.
They are also accusing him of misusing funds aimed at taming environmental pollution,and the influx of cartels at City Hall.
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