The Ethics and Anti-Corruption Commission (EACC) has ended investigations into an inflated Sh1.2 billion campus purchase deal between Masinde Muliro University of Science and Technology (MMUST) and Mount Kenya University (MKU), citing the demise of the official accountable for the transaction.
The commission had commenced investigations into the matter following a complaint that MMUST had purchased the MKU Turkana Campus at an exorbitant price of Sh1.2 billion yet the property was valued at Sh600 million.
Investigations established that the acquisition was initiated through a letter dated March 17, 2016, by the Deputy Vice Chancellor of MMUST, Planning, Research and Innovation to the Cabinet Secretary of Education Science and Technology.
MMUST University Council
The letter was accompanied by a proposal requesting the approval of the acquisition that was granted subject to the availability of funds, preparation of a financial outlay for the project, and the concurrence of the Commission of University of Education (CUE).
Investigations by the EACC established that CUE approved the acquisition stating that it had already accredited the campus. The MMUST University Council also deliberated and approved the acquisition on June 17, 2017.
“Investigations revealed that the procurement procedure was not followed. However, the person responsible for ensuring adherence was the accounting officer who was the Vice-Chancellor (VC) at the time Prof Frederick A.O Otieno who is deceased” EACC said.
On July 28, 2022, a report was compiled by the EACC team and forwarded to the Director of Public Prosecution (DPP) with a recommendation for closure of the inquiry file reason being that the officers who had made the payments acted within the law and to fulfil MMUST’s contractual obligations.
The report further held that the VC (Prof Otieno) who would have been culpable for failing to adhere to the procurement law and regulations is deceased.
Audit queries
On October 24, 2022, the DPP returned the inquiry file and concurred with the commission’s closure of the file.
Prof Otieno left office on December 1, 2018, amid a barrage of audit queries. He died in 2019.
At the time of his death, the VC had an ominous dark cloud swirling above his head, including a damning report by the Auditor-General’s office alleging irregular expenditure of funds amounting to Sh362 million in the year to June 2016.
In the Auditor-General’s, the deceased had accused MMUST of having entered into huge illegal contract variations, irregular procurement, failing to present cash books for an audit, and keeping cash unbanked and unaccounted for contrary to proper accounting procedures.
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