Anti-graft detectives have unearthed a complex money trail showing Migori Governor Okoth Obado received millions in kickbacks from county suppliers that is likely to cause him a nightmare in court.
Obado surrendered to the Ethics and Anti-Corruption Commission in Kisii on Wednesday and is set to be arraigned Thursday alongside his four children, dealing a serious blow to his political career.
Little-known Deputy Governor Nelson Mahanga from the minority Kuria community will take over county affairs as Obado will not be allowed to set foot in the county premises.
Director of Public Prosecutions Noordin Haji said on Tuesday investigations revealed the cash was used to pay school fees, upkeep, maintenance and medical bills for the governor’s children studying in Australia, Scotland and the United Kingdom.
“Some of the said monies were traced to have bought two motor vehicles of make, Toyota Land Cruiser V8,” the DPP said.
A dossier from the EACC, obtained exclusively by the Star, details how Sh38.9 million of county cash was wired directly to Obado’s children from major suppliers said to be the governor’s proxies.
The same suppliers bankrolled the purchase of a Sh34.5 million house in Nairobi’s upmarket Loresho Estate where Obado’s daughter, Evelyne Adhiambo Zachary, is collecting rent.
The architect of the alleged theft is said to be Jared Oluoch Kwaga — a mysterious man unknown to many — who used five members of his family, including his wife and mother.
All the five, alongside their 12 companies that are said to have received tenders worth more than Sh2 billion from the Migori county government, will be prosecuted.
Documents in the Star’s possession show that at one point, Kwaga was paid Sh139.9 million through his various firms. He then wired it to his personal Cooperative Bank Account from where he sent Sh15.6 million directly to Obado’s three children.
Achola Dan Okoth received Sh11.3 million, Susan Scarlet Akoth Sh1.9 million and Jerry Zachary Okoth Sh2.3 million.
The three will be charged alongside their father and sister Evelyne Zachary.
Deltrack ICT Services owned by Joram Opala, Kwaga’s brother, was paid Sh30.6 million. He then wired Sh10.8 million to Achola.
Three of the firms associated with the Kwaga family were also paid Sh163.5 million by the Migori government.
They are Pesulus Supplies and Kajulu Business Ltd owned by Kwaga’s mother Peninah Auma, and Atinus Services owned by Kwaga’s wife Christine Akinyi Ochola.
After receipt of the cash, Sh20 million was wired to Misoft Company Ltd co-owned by Kwaga and his wife Akinyi.
From the accounts of this firm, Sh9.9 was transferred directly to Obado’s children, the EACC dossier indicates.
Susan was paid Sh5.9, Achola, Sh1.8 million and Jerry Sh2.2 million.
Tarchdog Printers Ltd owned by Kwaga’s brother Joram Opala Otieno was also separately paid Sh37.4 million by the county.
Of the cash, Sh2.5 million was wired to Achola and Jerry.
Kickbacks allegedly wired by suppliers felled former Kiambu Governor Waititu and led to the arrest of his Nairobi counterpart Sonko.
The money trail also shows the firms associated with the Kwaga family pooled resources after being paid by the Migori government to buy a house in Loresho Estate.
The house was registered in Kwaga’s name.
However, the EACC discovered that rental income from the property is wired into the bank accounts of Obado’s daughter, indicating he is simply holding the property in trust.
The property was acquired in 2014 from the trustees of the Kenya Power Staff Retirement Benefits Scheme.
“Investigations have also established the recipient of rent accruing from the property Loresho Ridge House No. C1 on LR No. 21080/38 is one Evelyne Zacharia Okoth who is a daughter to Zacharia Okoth Obado,Governor Migori county,” the EACC said.
The documents show that Dankeys Press owned by Kwaga’s wife contributed Sh9 million and Swyfcom Engineering owned by Kwaga’s brother Patroba Ochanda Otieno contributed Sh8.5 million.
Mactabac contractors owned by Joram Opala Otieno, also Kwaga’s brother, paid Sh4 million, while Misoft paid Sh6.9 million.
Kwaga separately paid Sh8.9 million from his Cooperative Bank account for the house after receiving payments from several other firms associated with him.
Kwaga has remained a mysterious character unknown to many and having few traces on the internet. Media houses do not have his pictures.
At one point, he was appointed to the Kenya Institute of Mass Communication (KIMC) board by ICT Cabinet Secretary Joe Mucheru. The appointment was promptly revoked after a media outcry.
The EACC said in court documents that firms owned by Kwaga’s mother — Kajulu Business and Pesulas Supplies — purportedly rendered high-value specialised services, which the commission established she has no knowledge of or expertise in.
Detectives also established that Ochanda, who is a director of Swyfcon Engineering Ltd and Dolphus Software Ltd, was an employee of the Migori county government, working as a pharmacist at Uriri subcounty hospital.
The law prohibits government employees from entering into procurement contracts with the entity for which they work.
According to the EACC dossier, the seven family members registered many firms which were special purpose vehicles for fraudulently securing tenders from the county government of Migori.
Most of the firms, according to court documents, were registered between 2014 and 2016 immediately after the first county governments were established.
In November 2018, the High Court issued orders barring the suspects from selling or transferring 65 properties — including maisonettes, apartments and land — all valued at more than Sh382 million.
The EACC said the suspects should be forced to refund Sh1,971,179,180 obtained from Migori county and forfeit to the government the 65 properties frozen by the court.
Of the 65 properties, the High Court put a caveat on 42 belonging to Kwaga, excluding 17 he transferred after detectives raided his home in early 2018.
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