Former deputy A-G, five others arrested over fraudulent purchase software

Saturday, October 19th, 2019 00:00 |
EACC chief executive, Twalib Mbarak.

Former deputy Auditor General Stephen Kinuthia, ICT director Justus Ongera and four others were Friday arrested for fraudulently purchasing Sh100million software for the office of the auditor general.

In a statement to newsroom Friday, Ethics and Anti-Corruption Commission (EACC) said the arrests follow the acquisition of the software known as the Audit Vault that was purchased through direct procurement from Open Systems Integration (OSI) on grounds that it was the only accredited partner of Oracle to supply the software.

EACC chief executive Twalib Mbarak said Kinuthia, Ongera, the four individuals — who include Charles Njuguna, and Enkei Holdings Ltd directors Desmond Kinuthia and Nelson Kinuthia — and 24 others will be charged with various offences as per the provisions of section 35 of the Anti-corruption and Economic Crimes Act after the Director of Public Prosecutions (DPP) granted them the consent to charge the said individuals.

The suspects will be charged with conspiracy to commit an economic crime, conflict of interest, unlawful acquisition of public property, and money laundering.

“Upon completion of the investigations and pursuant to section 35 of the Anti-corruption and Economic Crimes Act, the file was submitted to the DPP who upon review of the file has granted consent to charge 24 individuals and entities,” read the statement.

Consequently, EACC has also summoned 10 other individuals to present themselves to the commission for grilling.

The 10 are Oracle Systems sales executive Charles Gachobi, non-executive directors at OSI Ephantus Kahwae and Sylvester Kiplagat, OSI managing director Patrick Maina, Enkai Holdings director Charmine Kinuthia, Mars Technology Limited directors Charles Mwaduna and Edward Mwachinga, Nanazi Investment Limited directors Jane Kinuthia and Florence Kinuthia as well as a partner at Amolo Gachoka and Co advocates, James Gachoka.

According to EACC, the arrests come after they concluded investigations into the acquisition of the software, which they said had no justification for single sourcing.

The payment for the software, said Mbarak, was grossly exaggerated as out of the Sh100 million paid out only Sh36 million was legitimately paid to Oracle for the software as the balance of the money amounting to Sh64million was paid as kickbacks to public officials, private persons and associated companies.

The arrests come after last year EACC said it received information about the irregularities in the acquisition of the system.

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