Nzoia Sugar Company boss distances himself from tyre scam

Nzoia Sugar Company Managing Director Saul Wasilwa has distanced himself from a scandal in which top officials at the Defence ministry, Roads, military and several State corporations pocketed millions of shillings in bribes to award tenders to American tyre company Goodyear.

This, even as the Ethics and Anti-Corruption Commission (EACC) indicated it would investigate and grill the individuals mentioned in the scandal.

“We have the Mutual Assistance Act between Kenya and the United States of America and we will work with our US counterparts to get more information and finer details of individuals involved in the bribery allegations,” said EACC chairman Mumo Matemu.

“The law will take its course because that is why EACC was formed,” he added.

The scandal broke out on Wednesday after Goodyear was fined Sh1.5 billion over allegations that the global giant’s subsidiaries in Kenya and Angola paid hefty bribes to secure lucrative supply deals with government agencies and private institutions between 2007 and 2011.

(READ: US firm fined for bribing Kenya officials)

Investigations by the US Securities and Exchange Commission (SEC) found out that the company — which operates in Kenya as Treadsetters — had paid out bribes amounting to Sh136 million ($1.5) billion to get tenders.

The revelations put on the spot the officials in charge of the named institutions between 2007 and December 2011.

Officials in charge of Nzoia Sugar Company were Mr Josephat Akoyo, the firm’s former boss, and Mr Saul Wasilwa, who took over in 2009.

NAME INDIVIDUALS INVOLVED

Mr Wasilwa, in his defence, while not disputing the financial impropriety, said: “It will be good if we are furnished with names of the employees involved in order to take necessary action against them.

"It would not augur well for anyone to throw a blanket condemnation on the whole company as having participated in such an illegality because Nzoia has over 8000 employees and hence we can’t all be condemned for a crime maybe committed by one or two of the firm’s employees.

Two executives of the tyre firm were this month sentenced to four and a half years jail terms for paying the bribes.

In Kenya, no one has been charged or arrested in connection with the scandal.

Other companies implicated in the report as having received bribes from Goodyear include Kenya Ports Authority (KPA), Armed Forces Canteen Organisation (AFCO), Nzoia Sugar, Kenya Air Force, Ministry of Roads, Ministry of State for Defence, East African Portland Cement Company (EAPCC) and Telkom Kenya.

Additionally, the US detectives also established Sh1.3 million ($14,457) was dished out to lure Kenya Police and City Hall officials to award the Ohio-based tyre maker multi-million shilling deals.

Top government officials who were in charge of the implicated institutions during the period under review in which the well-orchestrated bribery ring occurred include Garrisa Senator Yusuf Haji who was in charge of the Defence ministry.

Also required to explain their roles in the scandal are former EAPCC bosses Ndegwa Kaggio and his successor John Nyambok (2008 to 2010) as well as current MD Kephar Tande.

Those at the helm of Telkom Kenya include former MDs Dominique Saint Jean (2007 to 2009) and his successor Mickael Ghossein who retired in 2014.

Current ODM Nairobi Chairman George Aladwa and those who served as town clerks — Philip Kisia (2009 to 2012) and his predecessor John Gakuo will also be required to explain their role in the tyre scandal.

The revelations come just weeks after a UK court exposed the “chicken” scandal in which Smith & Ouzman directors were found guilty of paying more than Sh50 million to election officials over a two year period.

Two executives of the UK Company were sentenced to four and a half years jail terms for paying the bribes.

Although the matter is currently under investigation by the Ethics and Anti-Corruption Commission, no one has been charged or arrested in connection with the scandal.