EACC on the spot over Integrity Centre cost

Integrity Centre in Nairobi, the headquarters of the Ethics and Anti-Corruption Commission. PHOTO | FILE | NATION MEDIA GROUP.

By  DAVID MWERE

What you need to know:

  • The commission admitted that it was charged by the owner of Integrity Centre for renovations that were, in fact, done by the agency using public funds.

  • It also emerged that the National Land Commission (NLC), then headed by Muhammad Swazuri, valued the property, yet it was the acquiring entity, a potential conflict of interest.

  • PAC indicated that it will summon former NLC bosses and former EACC boss Halakhe Waqo during whose tenure the deal was transacted.

In a case of the hunter becoming the hunted, a parliamentary committee has questioned the anti-graft agency’s decision to acquire Integrity Centre, where it is housed, for Sh1.5 billion when the building was valued at Sh400 million just three years ago.

PROPER VALUE

Appearing before the National Assembly’s Public Accounts Committee (PAC) yesterday, Ethics and Anti-Corruption Commission (EACC) boss Twalib Mubarak was hard-pressed to explain the decision, as it emerged that taxpayers might have not got value for their money.

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This came after the commission admitted that it was charged by the owner of Integrity Centre for renovations that were, in fact, done by the agency using public funds.

It also emerged that the National Land Commission (NLC), then headed by Muhammad Swazuri, valued the property, yet it was the acquiring entity, a potential conflict of interest.

The panel also heard that NLC did the valuation without the building’s structural and architectural design, key components in determining a building’s value. Moreover, the Ministry of Lands was not involved.

“I just want to be told why it was not necessary to engage the Ministry of Lands as required by law for the proper value of the building and so that the public does not lose money,” said Ugunja MP and PAC chairman Opiyo Wandayi.

BANK LOAN

Information shared with the committee shows that the owner, Tegus Ltd, bought Integrity Centre from Revack Ltd for Sh400 million in 2013. Revack had acquired the building from the Kenya Deposit Insurance Corporation (KDIC), which manages collapsed banks’ assets.

The building was taken over by KDIC from the collapsed Trust Bank after it failed to repay a bank loan for which the building had been charged.

Mr Mbarak, vice-chairperson Sophia Lepuchirit, and commissioner Mwaniki Gachoka were at pains to explain why the agency did not involve the Lands ministry to carry out another valuation.

The NLC report shows that the 1.2-acre tract was valued at Sh691.7 million while the building and improvements were valued at Sh650 million, bringing the cost to Sh1.3 billion, plus Sh201 million (15 per cent) as statutory allowance, bringing the total cost to Sh1.5 billion.

PAC indicated that it will summon former NLC bosses and former EACC boss Halakhe Waqo during whose tenure the deal was transacted.

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