The Ethics and Anti-Corruption Commission (EACC) has secured court orders freezing two apartments located at Nextgen Park and Fourways Junction in Nairobi county that were allegedly purchased partly using money stolen from Vihiga County Government.
Nathaniel Mavyeve Ahaza, the Head of Procurement at the County Government of Vihiga and his two wives Peris Odari and Elizabeth Masidza, former chief finance officer Wilberforce Ndula his wife Emma Mulongo Kisembe and eight other senior officials of Vihiga County are the main suspects in the fraud purchase of the two apartments totalling to Ksh27.5 million.
The apartment at Nextgen Park, Mombasa Road is valued at Ksh14 million while the one at Fourways Junction in Nairobi is valued at Ksh13.5 million.
The senior Vihiga County officials under probe by EACC are Head of Procurement Mavyeve, former chief finance officer Wilberforce Ndula and his wife Emma Mulongo Kisembe (Revenue Officer), Beatrice Alosa Omukuti (Director Accounting), Johnson Ombaka (Head of Internal Audit), Ernest Ambaka (Head of Treasury-Accounting), Victor Keyo (Accountant at the County Treasury) and three accountants at the Department of Finance Peter Ejimba, Beatrice Makungu and Joseph Chitechi.
Others on the radar of the anti-graft body are Antonina Sangura (a Nairobi businessman) and Elizabeth Masidza, a director of Boyse Venture Limited, the firm at the centre of multi-million fraud at the County Government of Vihiga.
Mavyeve, who is the main suspect in the fraud, is said to have fraudulently obtained millions of shillings through Boyse Venture Limited in which he is registered as a proprietor together with his wife Masidza, a business lady.
The County Government of Vihiga was defrauded over Ksh13,989,450 through fictitious contracts for the provision of services of capacity building, induction and development of risk management policy and toners which were never delivered.
An affidavit filed in court by EACC investigator Caroline Kimathi details how Mavyeve executed the scheme in collusion with colleagues at the county government.
Vihiga scandal
The officer states that preliminary investigations show that the County Government of Vihiga without following any procurement process entered into an agreement with Boyse Venture Limited, a firm associated with Mavyeve for the provision of services of capacity building, induction and development of risk management policy during the period commencing December 19 to December 22, 2014 at a cost of Ksh8,061,000.
The contract was executed by Ombaka who was the Director of the Internal Audit County Government of Vihiga and Godfrey Wanjala, an employee of Boyse Venture Limited.
EACC states that Ndula together with his co-county officials processed irregular and illegal payments totalling Ksh13,989,450 to Mavyeve and Masidza's company purportedly for the supply of toners and capacity-building services.
The commission says that it has established that the contracted firm did not honour the terms of the agreement as the capacity building/training did not take place from December 19 to December 22, 2014, or at all, and no risk management policy was developed.
"EACC established that Boyse Venture Limited did not have the expertise to develop the policy nor conduct the capacity building/training," stated investigator Kimathi.
"Despite the foregoing, an RTGS net payment of Ksh7,657,950 was made to Boyse Venture Limted's Equity Bank account on January 16, 2015, from the Vihiga County Recurrent account," she adds
While seeking the freezing orders, Kimathi further informed the court that with respect to the supply of toners, there was no procurement process and neither were the toners supplied by the said firm
"Nevertheless, on October 23, 2014, Boyse Venture Limited through its Co-operative Bank Account received the sum of Ksh6,331,500 from Vihiga County Government Standing Imprest account held at KCB for the alleged supply of toners," Kimathi informed the court.
She adds investigations reveal that "the said payment was invoiced in the IFMIS system as payment for the supply of uniform contrary to what was purportedly supplied. The RTGS Payment also indicated the purpose as Supply of County Administrative Clothing."
The officer says that the investigations also established that the County Government of Vihiga was defrauded of an amount of Ksh13,989,450 through fictitious contracts secured un-competitively and in blatant disregard of the provisions in the Public Procurement and Disposal Act, 2005 and the Public Procurement and Disposal Regulations, 2006.
EACC says that Mavyeve and Masidza illegally benefited to the tune of Ksh13,989,450 from fraudulent contracts awarded to their firm-Boyse Venture Limited.
Kimathi says that Boyse Venture Limited upon receiving the funds, transferred a sum of Ksh2,060,000 towards the purchase of Apartment No. 7, Residential Tower B, Nextgen Park situated on L.R. No. 209/18648, Mombasa Road.
EACC states that investigations established that the Apartment is owned by Mavyeve and his wife, Peris Odari.
Further, the firm transferred a sum of Ksh8,450,000 in two instalments to Suraya Property Limited being part purchase price for Apartment No. SPG/03/P2/T31/246 Tulip Court 3 erected on LR NO 28223/33 Fourways Junction Nairobi.
The apartment is owned by Mulongo who is the wife to the Ndula, both of whom are county officials; Revenue Officer and Chief Officer of Finance, respectively.
The freezing orders were issued by Lady Justice Esther Maina of the High Court’s Anti-Corruption and Economic Crimes Division on application by EACC.
"Pending hearing and determination of this suit, Mavyeve by himself, his agents, servants and/or employees or any other person interested in the suit property herein be restrained from alienating, selling, charging, further charging, leasing, transferring, wasting, disposing or in any other manner dealing with Apartment No. 7, Residential Tower B, Nextgen Park situated on L.R. No. 209/18648, Mombasa Road other than by way of surrender to the Government of Kenya," Justice Maina ordered.
She further restrained Mulongo, her agents, servants and/or employees or any other person interested in the suit property from alienating, selling, charging, further charging, leasing, transferring, wasting, disposing or in any other manner dealing with Apartment No. SPG/03/P2/T31/246 Tulip Court 3 erected on LR NO 28223/33 Fourways Junction Nairobi other than by way of surrender to the Government of Kenya.
The case will be heard on July 12, 2023.
