Eight deny Sh26m Water Ministry fraud charge

A husband to an assistant minister and a son-in-law to a cabinet minister could each face up to ten years in jail after they were charged with conspiracy to defraud the Ministry of Water and Irrigation.

Dennis Edmond Apaa, husband to Tourism Assistant minister Cecily Mbarire and Billy Indeche, who is Water minister Charity Ngilu’s son-in-law, were among eight directors of a private company and top water ministry officials charged over irregular tender awards.

Section 46 and 48 of the Anti-Corruption and Economic Crimes Act, provides that any person found guilty of the offence is liable for a fine not exceeding Sh1 million or a jail term not exceeding 10 years or both on each count.

The suspects were charged with ten counts of conspiracy to commit an economic crime, willful failure to comply with the applicable procedures and guidelines relating to tendering of contracts, abuse of office, fraudulent acquisition of public property and fraudulently making payments from public property.

Mr Apaa and Mr Indeche were charged before principle magistrate Lucy Nyambura alongside Isaiah Amwanzo Benjamin, Samuel Aluoch Otieno, Robert Mati Musyimi, Joseph Mutuku Nzesya, Mwagambo Mwangombe Nyamawi, Lawrence Nguniko Simitu and Broad Vision Utilities Limited.

Mr Simitu was however not present to take a plea and a warrant was issued for him to present himself in court or face arrest.

In the first count, Mr Apaa, Mr Indeche, Mr Otieno, Mr Amwanzo, Mr Simitu and Broad Vision Utilities Limited allegedly to have jointly conspired to defraud the Ministry of Water and Irrigation a total of Sh26.4 million.

According to the charge sheet, they committed the offence between January 2009 and September 2010 at Maji House by purporting that Broad Vision Utilities was qualified to be awarded a tender to equip five boreholes in Machakos and Makueni districts.

Mr Apaa and Mr Indeche faced another count of fraudulently acquiring Sh17.4 million from the Ministry of Water in the pretext that Broad Vision Utilities had equipped boreholes in Machakos under the Emergency Drought Mitigation Programme.

The two were further accused of obtaining Sh6.1 million from the Ministry of Water on the pretext that the amount was owed to Kenya Power as fees for connection of power to three boreholes in Machakos and Makueni Districts.

Mr Simitu, Mr Amwanzo, Mr Otieno, Mr Nzesya, Mr Mwangombe and Mr Musyimi were charged with four counts of abuse of office.

It was alleged that between May 2009 and July 2010 at the Ministry of Water offices, they used their offices to confer Sh20.1 million to Broad Vision Utilities Limited for services not rendered.

Mr Simitu is the director of water services while Mr Amwanzo is the assistant director in charge of electrical services. Mr Otieno is the deputy director of operations and maintenance. Mr Nzesya and Mr Mwangombe are the chief executive officer and finance manager of Tanathi Water Services respectively.

They all denied the charges, except Mr Simitu who was not present to take a plea.

Principle magistrate Lucy Nyambura released Mr Apaa, Mr Indeche, Mr Otieno and Mr Amwanzo on a Sh2 million bond with  a surety of a similar amount or a cash bail of Sh1 million.

Mr Mati, Mr Mwangombe and Mr Nzesya were released on a Sh1 million bond and a surety of a similar amount. Mr Nzesya was also ordered to report to the CID headquarters on Monday next week to have his fingerprints taken.

The suspects had presented themselves to investigating officers on Wednesday to record statements after which they were summoned to appear in court. The case will be mentioned on October 14.

The Director of Public Prosecution Keriako Tobiko ordered that the eight be prosecuted after recommendations from the Kenya Anti Corruption Commission (KACC).

The commission, which is being replaced by the Ethics and Anti-Corruption Commission, had recommended that the eight be charged alongside Water minister Charity Ngilu for alleged breach of trust and conspiracy to defraud the government.

However, Mr Tobiko absolved the minister from the allegations and directed that further investigations be conducted to determine whether Mrs Ngilu committed an offence when she commissioned an incomplete borehole at Ndovoini, Machakos.

According to the KACC report, the Broad Vision Utilities was registered with a forged letter of recommendation from CiviTech Consultants. The letterhead was also fake and it was dated November 2002, while Broad Visions was registered in 2008.