NYS paid my firm Sh35m, says Kinisu

Ethics and Anti-Corruption Commission chairman Philip Kinisu issues a press statement on July 19, 2016. Anti-graft boss on Wednesday confirmed that his company received Sh35.4 million from the National Youth Service over the past three and a half years. PHOTO | DIANA NGILA | NATION MEDIA GROUP

What you need to know:

  • Philip Kinisu said Esaki Ltd received the rest of its revenue, amounting to Sh277.5 million, from “other customers” over the period.
  • Through his lawyer Wanyonyi Chebukati, Mr Kinisu said the company has not received money either from NYS or the Devolution ministry this year.
  • Esaki’s dealings with NYS are being investigated by the Directorate of Criminal Investigations, Assets Recovery Agency and Kenya Revenue Authority.
  • African Population and Health Research Centre, a non-governmental organisation whose board Mr Kinisu chairs, is also being investigated.

Anti-graft boss Philip Kinisu on Wednesday confirmed that his company received Sh35.4 million from the National Youth Service (NYS) over the past three and a half years.

The Ethics and Anti-Corruption Commission (EACC) chairman said Esaki Ltd received the rest of its revenue, amounting to Sh277.5 million, from “other customers” over the period.

The infamous NYS scandal, in which Sh791 million of taxpayers’ money was allegedly lost through fraudulent payments, is being investigated by the EACC, raising concerns of conflict of interest.

Through his lawyer Wanyonyi Chebukati, Mr Kinisu said the company has not received money either from NYS or the Devolution ministry this year. The ministry, which oversees the NYS, paid Esaki Sh32,360,400 in 2014 and Sh3,085,900 in 2015.

Mr Chebukati said in a statement: “The accounts for past years have been audited and filed with authorities as required by law. We also analyse the main sources of that income showing what came from Devolution Ministry/NYS.”

Esaki’s dealings with NYS, and by extension the ministry, are being investigated by the Directorate of Criminal Investigations (DCI), Assets Recovery Agency and Kenya Revenue Authority.

African Population and Health Research Centre, a non-governmental organisation whose board Mr Kinisu chairs, is also being investigated.

This was triggered by NGO Coordination Board Executive Director Fazul Mohamed’s letter to National Intelligence Service (NIS) Director Philip Kameru saying preliminary investigations revealed possible acts of money laundering, diversion of donor aid and regulatory mischief.

The NGO received in excess of Sh5 billion in the past three years, according to Mr Mohamed.

On Tuesday, Mr Kinisu blamed his problems on powerful cartels that want to frustrate the war against corruption. He revealed that his agency is investigating more than 7,000 corruption cases, some of them “high-profile”.

Although he declined to mention the specific cases, Mr Kinisu defended the dealings with the NYS, saying he will not resign.

SETTING TERRIBLE PRECEDENT

“Resigning would be setting a terrible precedent because any person can fabricate a claim against a public official,” said Mr Kinisu. “All contracts between the company (Esaki) and NYS were won and performed prior to my appointment as EACC chairman.

“The allegations are unsubstantiated and yet we have been tried and convicted in the court of public opinion.”

Besides, the anti-graft chief said, he stopped being a director at Esaki on April 19 “on account of my commitment to EACC”.

Mr Kinisu added: “I’m convinced I am targeted for intimidation, malice and harassment for fighting against corruption.”

He did not rule out involvement of EACC staff in the alleged scheme, saying plans to vet them, and weed out those found unfit for service, had stalled.

“Corruption is complex and powerful. I knew this job would be difficult. I see these events as evidence our work is beginning to have an impact. I remain committed to this fight.”

The EACC boss said he will cooperate with investigating agencies.

Mr Kinisu also did not rule out involvement of EACC employees in the efforts to oust him, saying plans to vet them, and weed out those found unfit for service, had stalled.