Ruto firm linked to Sh20m payout trail in Sonko probe
What you need to know:
The red flag over the garbage collection tender was first raised by the Nairobi County Assembly’s Public Accounts Committee in July 2018.
City Hall’s Environment Department could not account for Sh162 million paid to 11 firms contracted to collect garbage.
Mr Sonko blamed people in his office, whom he did not name, for making the payments behind his back.
An insurance company associated with Deputy President William Ruto has been linked to the City Hall money trail in which Nairobi County Governor Mike Sonko is entangled.
This week, the governor appeared before the Ethics and Anti-Corruption Commission (EACC) to explain how he allegedly received over Sh20 million from some companies that were doing business with the Nairobi County government in the 2017/2018 and 2018/2019 financial years.
RECEIVING BRIBE
Documents seen by the Nation show that Amaco Insurance has had a running contract since 2013 to insure Nairobi County government vehicles. On the other hand, the same company has an ongoing three-year contract with Arbab Auto Care Ltd, a garage located on Kangundo Road, where the county government’s vehicles are taken for repairs. The contract was signed on June 30, 2016.
Arbab is owned by Anthony Otieno Ombok, alias Jamal, who is alleged to have paid the governor Sh3.4 million. Mr Sonko told investigators that two months after he was sworn in as governor in August 2017, the Treasury released Sh100 million to the county through the Integrated Financial Management Information System. The money was meant to pay Amaco for services rendered, he told EACC detectives.
Upon receiving the payment, Amaco wired more than Sh20 million in bank transfers of Sh10.7 million, Sh7.5 million and Sh5.3 million to Arbab.
Our sources say that Governor Sonko told EACC investigators that the money Mr Ombok wired to him was a part-payment for a piece of land in Mavoko, which he sold to him in early 2017 while he was still the Senator of Nairobi. He claimed he had bought the land from former Health Cabinet Secretary Cleopha Mailu.
The embattled governor is also being investigated by the EACC for allegedly receiving a bribe from a garbage collection company called Hardi Enterprises Ltd, which is owned by city businessman Anthony Mwaura.
PERSONAL ACCOUNT
Mr Mwaura is also a director of a construction company, Toddy Civil Engineering Ltd, which was awarded in September 2018 a Sh424 million tender for a waterworks project in Kwale County.
The governor told the investigators that the piping for the water project cut through a piece of land he owns in Kwale and which Toddy acquired from him. Documents presented by the governor at the EACC indicate that Mr Mwaura started depositing money into Mr Sonko’s account at the beginning of April 2017.
On April 7, 2017, through an account at KCB, Toddy deposited Sh500,000 to the governor's account. On April 19 and May 5, 2017 Mr Mwaura deposited Sh1 million on both occasions from his personal account.
Companies awarded the garbage collection tender include Hardi Enterprises, Jackoy Enterprises, Flexilease Ltd, Acacia Equipment (K) Ltd and Aende Group Ltd. Tendering for the garbage collection was marred by irregularities.
The red flag over the garbage collection tender was first raised by the Nairobi County Assembly’s Public Accounts Committee in July 2018, which revealed that City Hall’s Environment Department could not account for Sh162 million paid to 11 firms contracted to collect garbage.
NON-REMITTED TAX
Mr Sonko blamed people in his office, whom he did not name, for making the payments behind his back.
“I blacklisted the companies and blocked their payments after the Environment Committee raised issues,” he said outside EACC offices after he emerged from an eight-hour session with the investigators.
The governor is under investigation over allegations that his administration failed to remit tax deductions to the state, including those arising from payments made to suppliers and contractors, value added tax and income tax on profits.
Mr Sonko claimed that the Sh4.5 billion non-remitted taxes accrued before he came into office and it is a problem he “inherited from the former regime” of former governor, Evans Kidero.
“Yes, we have their debt but currently we don’t have a problem, as we paid our salaries by August 25 and even remitted Pay As You Earn, and what remains is withholding tax of Sh50 million for August. But we are ready to pay,” he said.
