The Ethics and Anti-Corruption Commission (EACC) has arrested Pyrethrum Board of Kenya boss Paul Lolwerikoi over economic crimes and other procurement irregularities.
EACC Spokesperson Yasin Amaro has confirmed. "The PPCK acting MD is in police custody. He was arrested over economic crimes and other procurement irregularities," he said.
His arrest comes in the wake of widespread corruption claims at the agency, hindering efforts to revive the crop.
A shop steward at the Nakuru factory told Nation that detectives had been camping at the factory for the better part of Friday afternoon.
A recent Auditor–General report for 2017/2018 financial year indicates that PPCK paid Sh20 million to casual workers for work not done.
The acting MD was also embroiled in a controversial award of a tender to a private estate agent to collect rent from houses owned by the agency.
PPCK has property worth Sh4 billion spread in all 18 pyrethrum growing counties.
Pyrethrum Board of Kenya Staff Superannuation Scheme has on a number of occasion petitioned the government to investigate the MD.
The MD has also been at the centre of controversy for after PPCK approved sale of trees at the PPCK-owned farm in Oljoroorok in Nyandarua County.
The Pyrethrum Growers Association (PGA) has also raised a red flag after the government failed to appoint a board of directors to run the company, leaving the acting MD to be the sole decision maker.
“This company has gone under because one man has the powers to decide on behalf of farmers and this has delayed the revival process,” said PGA national chairman Justus Monda in a past interview.
The EACC first raided the MD’s home and offices in March last year and carted away documents that were suspected to be related to corrupt activities at the cash strapped State firm.