The anti-corruption watchdog is going after a new set of suspects in the first National Youth Service (NYS) scandal, and Suna East MP Junet Mohamed has been linked to a company at the centre of the probe that has received backing from Director of Public Prosecutions Noordin Haji.
Ethics and Anti-Corruption Commission (EACC) investigators are seeking to establish if the lawmaker might have directly or indirectly benefitted from the proceeds of the Sh1.9 billion scandal that shook President Kenyatta’s administration to the core.
Mr Mohamed in 2015 denied links to two companies that supplied goods worth Sh129 million in questionable NYS tenders, but detectives have zeroed in on Zeigham Enterprises, in which the ODM lawmaker is listed as a director.
Zeigham Enterprises was contracted to supply machine belts, submersible pumps and a centrifugal clutch cut section worth Sh21.8 million.
RECEIVED SH21.8 MILLION
EACC investigations have confirmed claims of a huge conflict of interest in Zeigham’s receipt of the tender, since the other individuals linked to the firm are Mr Mohamed’s relatives. The Suna East MP’s brother, Mr Hussein Mohamed Haji, is the firm’s other director.
After Zeigham received Sh21.8 million from the NYS, some of the funds were wired to accounts operated by Sports Chief Administrative Secretary Hassan Noor Hassan and his wife, Ms Meymuna Sheikh Nuh.
READ: Jubilee MPs claim Junet Mohamed received NYS cash
At that time, Mr Hassan was an administrator in the Devolution ministry, then headed by Ms Ann Waiguru, and was acting as the chairman of the ministerial tender committee that awarded Zeigham the Sh21.8 million tender.
Ms Nuh and the Suna East lawmaker are siblings, which means Mr Hassan is Mr Mohamed’s brother-in-law.
Detectives are probing Mr Hassan because of his failure to reveal that his in-laws were directors in a company that his committee awarded a tender.
A businessman identified only as Mr Gabriel Mwamba Mwarunda is now the final loophole detectives are looking for to seal the wide-ranging investigations, since his Bank of Africa account was the final destination for a little of the NYS funds — Sh2.34 million.
Last Wednesday, the Milimani Chief Magistrate’s Court issued an order granting EACC detectives access to Mr Mwarunda’s account.
Sources revealed to the Nation that the EACC had submitted an investigative report to Mr Haji, the DPP, but the prosecutions boss advised that a few loopholes, like Mr Mwarunda’s involvement, be sealed before anyone is charged.
CONFLICT OF INTEREST
“Mr Hassan was the chairman of the ministerial tender committee that adjudicated and awarded Zeigham Enterprises the tender for supply of equipment and machines,” EACC says in court papers.
“Mr Hassan did not declare conflict of interest when adjudicating and awarding the tender to Zeigham Enterprises.”
While the Chief Magistrate’s Court did not issue freeze orders, it granted anti-corruption detectives access to the bank to enable them to obtain account-opening documents, original cheques, letters approving fund transfers from the account, statements, and any other papers relevant to investigations.
EACC detectives are looking for documents relating to the period between January 1, 2015 and January 1, 2017, as they look to tie up the loose ends.
“The EACC has reasonable and probable cause to believe that information and documents relating to the aforementioned Bank of Africa may lead to further vital leads in the ongoing investigations,” the anti-graft watchdog adds.
The EACC money trail revealed that NYS released Sh21.8 million to Zeigham Enterprises’ account at First Community Bank in 2015. The firm then wired Sh20.67 million to Murhak Enterprises Limited, a firm owned by Mr Hassan and his wife.
Murhak Enterprises then wired Sh11 million to an account owned by Ms Nuh, and Sh731,000 to another one owned by Mr Hassan in their personal capacities.
Ms Nuh wired Sh1.11 million to petroleum dealer Hashi Energy for an undisclosed purpose. She also sent Sh200,000 to an individual identified as Mr Abdi Salat.
ALFALLAH WHOLESALERS
Murhak Enterprises wired another Sh5 million to Alfallah Wholesalers, a company owned by the Suna East legislator.
In 2015, Mr Mohamed and Mr Noor were also linked to the NYS scandal on account of their relations with Fahaza Limited, a company owned by Ms Hafsa Sheikh Nuh and Mr Mohamed Sheikh Nuh, the Suna East MP’s siblings.
Fahaza was awarded a tender to supply grinders and other accessories worth Sh58.3 million.
Mr Noor was in 2016 charged alongside 22 other individuals over the misappropriation of Sh800 million from the NYS.
The case was dismissed in May, 2018, after Chief Magistrate Kennedy Bidali ruled that the evidence before the court proved only one of the 23 suspects, supply chain assistant Selesio Karanja, had a case to answer.
Witnesses in the case testified that a Ms Regina Mungai made the NYS payments and that the password used had been assigned to Mr Adan Gedow Harakhe.
