House team to grill CBK boss on KPCU cash

• Parliament last week passed a report by the committee that indicated that Sh210 billion was suspiciously channelled through KPCU accounts in suspected money laundering syndicates.
• The committee chairman, Mr John Mututho, said those responsible for destruction of mills at Wakulima building — estimated at over Sh500 million — would also be brought to book.
• The receivers, Deloitte Consulting Ltd, are also be summoned to explain issues touching on conflict of interests in transacting business with the farmers union.

Central Bank governor, Njuguna Ndungu will be summoned by the parliamentary committee on agriculture to explain how huge sums of money were channelled through Kenya Planters’ Co-operative Union accounts.

The Director of Public Prosecutions, Mr Keriako Tobiko, will also be summoned to reveal how many people have been taken to court over crimes committed at the once giant farmers union.

The committee chairman, Mr John Mututho, said that past managers and other people had committed crimes at KPCU that needed to be accounted for.

Parliament last week passed a report by the committee that indicated that Sh210 billion was suspiciously channelled through KPCU accounts in suspected money laundering syndicates. (READ: Crooks ‘used KPCU to clean Sh210bn’)

“We shall summon the Central Bank governor to tell us how KCB was given a free hand on these KPCU accounts.” he said. Mr Mututho spoke when he met the newly elected KPCU board members.

He said those responsible for destruction of mills at Wakulima building — estimated at over Sh500 million — would also be brought to book adding that committee members would visit the site on Thursday next week.

“We have information that the mills at Wakulima have been dismantled and sold off as scrap metal. We shall go there, accompanied by other relevant government agencies, to investigate the matter and have those responsible held to account,” he said.

Working from outside

He told the Sergent-at-Arms to inform the Kamukunji officer commanding police station to ensure the new board gets access to the offices by Wednesday, after they complained that they have been working from outside since they were elected on July 20.

Mr Mututho said the receivers, Deloitte Consulting Ltd, would also be summoned to explain issues touching on conflict of interests in transacting business with the farmers union that they have been managing since October 2009.

They will also be required to explain why they did not register officially as receivers. The board vice-chairman, Mr William Gatei, said the directors had appointed Mr Paul Muite and KPMG to help reconcile the accounts.

He told board members to provide their curricular vitae to the committee by next week, accompanied by their business plan. The committee took issue with the lack of women in the board.

The board was allowed to source Sh10 million to enable it to carry basic functions as other matters are dealt with.