Ex-Deputy Auditor General arrested

Former Deputy Auditor General Stephen Ndung’u Kinuthia has been arrested on suspicion of being involved in a Ksh64 million graft deal.

Kinuthia was arrested on Friday, October 18, alongside Justus Ongera who is the ICT director at the Auditor General’s Office.

Also apprehended were Annette Mwangi (IT manager at the Auditor General’s Office), Desmond Irungu Kinuthia (director, Enkei Holdings Ltd) and his colleague Nelson Karanja Kinuthia and Charles Mbugua Njuguna, a partner at Njuguna & Partners.

The six are alleged to have inflated the cost of an audit vault software from Ksh18 million to Ksh100.7 million.

The equipment, anti-graft body EACC says, was acquired through single sourcing, contrary to required procurement procedure.

Open Systems Integration (OSI) Kenya was awarded the tender.

EACC says OSI-Kenya lied to the State that it was the only firm accredited by Oracle to supply the software in the country.

The anti-corruption agency says records show that only Ksh36 million of the Ksh100.7 million was wired to Oracle accounts, and the remaining – Ksh64 million – “was paid as kickback to public officials, private persons and their associated companies”.

Besides the six suspects, who are in custody, EACC says it has marked 18 others for arrest and subsequent prosecution.

The 24, the anti-graft commission says, will be charged with conspiracy to commit an economic crime, conflict of interest, unlawful acquisition of public property, dealing with suspect property and money laundering.

Others lined up for arrest are: Charles Githinji Gichobi (Oracles System Kenya Ltd. sales executive), Ephantus Kairu Kahwe (Oracles System Kenya Ltd. non-executive director), among others.

EACC boss, Twalib Mbarak, says investigations into the alleged crimes began a few years ago.