Detectives to grill Kinisu on NYS tenders

Ethics and Anti-Corruption Commission Chair Philip Kinisu issues a press statement at the Laico Regency on July 19, 2016 in response to allegations of being involved in graft. EACC is still conducting investigations into the NYS scandal. PHOTO | DIANA NGILA | NATION MEDIA GROUP

What you need to know:

  • Among the tenders is the supply of goods to the National Youth Service (NYS) which is under investigation by the anti-corruption agency over questionable supplies deals.
  • Also under investigation for money laundering claims is a non-governmental organisation called African Population and Health Research Centre.
  • As the EACC boss waits for his date with detectives, the Sunday Nation has learnt that Esaki Ltd registered itself as being owned by a youth.

Embattled Ethics and Anti-Corruption Commission Chairman Philip Kinisu is Monday expected to record a statement with the police over his family company’s business dealings with the government. 

Mr Kinisu has been summoned to appear before the Directorate of Criminal Investigations (DCI) at 10 am to shed light on how his family company, Esaki Limited, won lucrative government tenders worth millions of shillings.

Among the tenders is the supply of goods to the National Youth Service (NYS) which is under investigation by the anti-corruption agency over questionable supplies deals.

“We have invited him to come over tomorrow and tell us more about Esaki and its business with various state agencies,” said head of DCI, Mr Ndegwa Muhoro.

Mr Kinisu’s wife Mary, a director of the company, is also expected to have a separate session with investigators.

The DCI is part of a multi-agency team investigating Mr Kinisu family’s business dealings with the NYS and Ministry of Health.

Also under investigation for money laundering claims is a non-governmental organisation called African Population and Health Research Centre.

Other members of the multi-agency team are the Kenya Revenue Authority, the Directorate of Public Prosecution and the Assets Recovery Agency.

Last week, the EACC boss confirmed that Esaki was paid Sh35 million by NYS during the period when it was faced with the Sh791 million scandal that claimed the jobs of top officials at the Ministry of Devolution.

EACC is still conducting investigations into the NYS scandal, but Mr Kinisu defended himself saying that he does not see any possible conflict of interest should the investigations touch his company.

“Is it wrong for any Kenyan to do business with government? My wife has worked hard for these contracts and it bad to demonise her for it,” he said at a press conference last Tuesday.

Mr Kinisu blamed his problems on powerful “crooks” whom he did not name.

He said his agency is investigating 7,000 corruption cases, some of them “high-profile”.

He also blamed internal schemes by officials opposed to his planned vetting of all staff at the agency.

INTERESTING REVELATIONS
As the EACC boss waits for his date with detectives, the Sunday Nation has learnt that Esaki Ltd registered itself as being owned by a youth.

The firm in 2004 registered itself under the Youth Access Government Procurement Opportunities. It was awarded the YAGPO certificate on February 20, 2014. 

The initiative was started in 2012 by the government to help the youth win government tenders.

In 2013, President Uhuru Kenyatta directed that procurement rules be amended to allow 30 per cent of government contracts be given to this group without competition from established firms.

In April 2015, Esaki was awarded a Sh150 million tender by the Ministry of Health to supply insecticides for the malaria control programme.

Though its bid was the lowest of the eight companies that tendered, it also included in its documents a certificate from YAGPO indicating that it is owned by a youth.

The manner in which it was awarded the contract has caught the interest of investigators. 

For example, the invoice, completion certificate, counter receipt book voucher and delivery note were all processed on the same day - August 10, 2015 - a record time for the government departments known for their slow processing of such documentation.

A week later, on August 17, the company was paid the full amount. The EACC chairman is also likely to be grilled on claims that a non-governmental organisation in which he is the chairman of the board has mishandled donor money.

In particular, the sleuths will be seeking to know why African Population and Health Research Centre (APHRC) is registered as an NGO but also has a limited company registered in the same name.

NOT A TEAM PLAYER
APHRC, which has its headquarters in Nairobi, conducts research on population, health, education, urbanisation and related development issues across Africa.

The organisation counts some of the richest charitable foundations in the world among its funders and partners.

They include the Bill and Melinda Gates Foundation, Google, The Rockefeller Foundation, Wellcome Trust, UK Aid, World Bank, among others.

Mr Kinisu owns Esaki Limited together with his wife Mary and their daughter Caroline Neto.

However, Mr Kinisu said he is no longer involved in the day-to-day running of the business which is now fully run by his wife.

Meanwhile, sources at EACC also say that the commissioners at the institution were unhappy with Mr Kinisu’s leadership style which they termed as overbearing.

The sources claim the commissioners accuse their boss of not being a team player.