Panic has gripped Kenya Airways after the Directorate of Criminal Investigations (DCI) started probe into procurement and Finance offices.
In procurement, the investigations, has to do the award of maintenance, repair and overhaul of the engineers.
In a letter dated September 2, 2019, Head of the DCI’s Banking Fraud Investigations Unit Abdullah Komesha requests KQ Managing director Sebastian Mikoz to avail various documents to help probe in the mutli-billion shilling fraud.
With Mikoz set to retire at the end of the year, infighting has rocked KQ as top managers openly fight with some even becoming whistle blowers to avoid arrest and play it safe.
Already a dossier on the current KQ subsidiary CEO and MD Jumbojet Allan Kilavuka including sexual exploits with air hostess are being exposed.He took over from Willem Hondius.Kilavuka boasts as already set to replace Mikoz.
Komesha requests KQ Managing director Sebastian Mikoz to avail various documents to help probe in the multi-billion shillings fraud.
Komesha wants documents in relation to the airline procurement Guidelines since the year 2015 and the financial payments.
DCI want list of all pre-qualified suppliers between 2015 and 2018 including tender documents by potential bidders.
Document in our possession by anti-banking fraud to KQ MD, indicates also required is information of the procurement and tender committee and that of the technical and commercial evaluation committees for the financial years 2017/18 and 2018/2019.
Insiders say, DCI are more concerned with reports of the airline technical evaluation and financial sourcing reports that have seen those in charge mint millions.
Probe wants also to establish the current composition of KQ board members, management structure and its members.
Those on the DCI radar include current and former top managers.
Former CEO Titus Naikuni, Ex- Finance Director Alex Wainaina Mbugua.Others are Brian Mbuti former in charge of in-flight and Jet fuel procurement.
Mbuti,together with Christopher Oanda then running airlines supply and chain department for nine years were among the cartel that looted the airline.Ex- finance Chief Dick Muriani and the face that replaced him Hellen Mwariri are cornered.Also on the list are Cathrine Miran ex-head of Internal audit, Lucy Muhiu who served as head of employees relations and Kelvin Kinyanjui who was information systems director.
Judith Ochieng who took over from Mbuti is also marked.
Mbugua through corrupt deals meant to bring down KQ to its knees is said to have bought 14 very high end properties in Johannesburg with 6 of the properties being located in the affluent Sandton area.
Four offshore companies, Twiga, Amboseli, Jetspace and Samburu were used.They pushed KQ to approach Boeing and Embraer to deliver the same after the players without investing a single cent got KQ LPOs and managed to use the same to get loans from Afro-Exim Services.
By then KQ fleet, the Embraer E170 series were being phased and replaced by the E190s. Key playersin the deal were powerful faces in Uhuru Kenyatta Office of the President said to own the 5Y-KYR, KYS and KYT. Another 10 aircrafts with registrations 5Y-FFA to FFJ are said to be owned by the Kenyatta family which earns them more than $500,000.
Illegal withdrawals in KQ reserve accounts in London have also been experienced.
Some of the areas which have been used to get money out of KQ include the outsourcing of various services like training, hotel and catering as well as importation of everything including toothpicks. Take the renovation of the IOCC building which is next to the Presidential Lounge at JKIA. Renovation work were so expensive and KQ ended up importing even pens, water dispensers and seats to spruce up the Engineer’s working area while what was imported could have been acquired cheaply locally.
Staff using the IOCC (International Operations Control Centre) wondered why KQ had to import water dispensers from Germany while they could get the same locally.
There was a time KQ spent an average of Ksh 1.5million on each and every staff member on useless trainings which did not benefit the said staff members in any way. The training was compulsory and those who failed to attend were sent on compulsory leave until they took up the training at the KQ Pride Centre.
One company which benefited most from the uncontrolled KQ outsourcing is the STOIC tracking. The company installed vehicle tracking and fleet management system in KQ vehicles being used on the tarmac to control speed. The speed limit is 25 Km/h. The company was being paid Ksh 4 million per month from 2005/2006 financial year to Dec 2014 when KQ decided to stop the service having realized that it didn’t prevent the staff from exceeding the speed limit on the airport tarmac