The Ethics and Anti-Corruption Commission (EACC) in Kenya made a significant move against corruption in the country by arresting four individuals, including Najib Balala, a former Cabinet Secretary and Leah Gwiyo, a Permanent Secretary for Tourism. These individuals face accusations of procurement fraud, specifically related to the construction of a hospitality college in the southern region of Coast.
The key charges brought against them include corruption and economic crime, with ten counts relating to the irregular disbursement of KES 8.5 billion from the Tourism Fund for the establishment of the Coastal region’s Ronald Ngala Utalii College.
In a statement, EACC Spokesperson, Eric Ngumbi, emphasized the extent of the investigations conducted by the Commission. They found that approximately Sh4 billion was paid to a consultancy firm under suspicious circumstances. In total, the EACC intends to apprehend and charge 16 individuals.
The EACC’s investigations traced back to a 2007 memo from Balala, which revealed the inflation of the hospitality college’s construction costs from KES 1.95 billion to KES 10.4 billion. Both Balala and Gwiyo are also accused of engaging consultants contrary to a cabinet decision, which led to an irregular payment of Kshs 3.3 billion in consultancy fees.
Following the arraignment at the Chief Magistrate Court in Malindi, Balala, Gwiyo, and another suspect, Joseph Odero, pleaded not guilty. The court has since released them on bail. The EACC is due to arrest an additional 12 suspects, including officials from the Tourism Ministry and Tourism Fund. Their charges include wilful failure to comply with procurement laws, abuse of office, and unlawful acquisition of public property.
The case is set to be mentioned again on December 28, 2023. It serves as a reminder to the legal professionals around the world about the importance of strict adherence to procurement laws and regulations, and the potential consequences that organizations and individuals may face for alleged non-compliance.
For more detailed information, view the full article from JURIST News here.