By Blamuel Njururi, Kenya Confidential Editor-in-Chief, Nairobi July 25, 20120
Kenya’s public and private sectors offer some of the best jobs to make one a millionaire overnight. The following article is part of a series of informative revelations of jobs that catapult public servants into millionaire status in a few years.
The best opportunities are for those pursuing accountancy, procurement, legal professions but an opening anywhere on a tendering committee is best chance. The security industry also has openings but risky owing to demands by your seniors to share the loot.
Like in many endeavours in life, there are risks involved but it is ones choice to engage in corruption or not and indeed, no one is born corrupt, its your choice and choices have consequences.
Junior Treasury employee scooped Ksh664 million in six years
Elvine Leware Macager, 38, a former employee at Treasury scooped Ksh664 million in six years without a drop of sweat.
Macager at 38 ran 16 companies that cumulatively robbed Kenya taxpayers Ksh 664 million between 2010 and 2016, mostly through bank transfers.
The junior employee, who earned Ksh16,000 month but made Ksh 664 million in six years was slapped with a Ksh 313 million tax demand by the Kenya Revenue Authority (KRA) early this year. KRA issued Macager, with a notice of assessment in June last year.
The breakdown of the tax demand was as follows: VAT (Ksh h108 million), Income tax (Ksh h199 million), Pay As You Earn (Ksh5 million) and capital gains Ksh700,000 for a piece of land he sold in Ruiru in 2016 for Ksh14 million.
According to KRA, the youthful businessman earned a salary of Ksh16,772 monthly at the National Treasury but investigations showed he did not file tax returns for the multiple companies that did business with government raking in millions of shillings.
The bulk of the payments are for between 2014 and 2017. Macager resigned a multi-millionaire in 2018 after a stint of 14 years at Treasury. No audit queries had been raised at Treasury over the discrepancies of payments, some which were not captures by IFMIS leading to suspicion he was a front for a web of cartels created to raise 2022 presidential funds by specific government institutions.
KRA in documents showed no purchases had been established for the businesses under review. The firms were mostly paid for non-existent consultancy services. Among the areas the firms allegedly provided consultancy service was at the State department of water and regional authorities.
- According to the taxman’s analysis, Macager, in September 2014 trading under Beachetts Services received Ksh27.8 million for non-existent consultancy services he provided for the construction of an abattoir.
- Between April and December 2014, Ksh103.3 million was wired to his bank accounts for consultancy on veterinary and construction his company offered.
Of this, Ksh27 million was not captured in the Integrated Financial Management Information System (IFMIS) electronic procurement system, which is used to pay for services rendered.
- In October 2014, trading with Ndegwil Insights and Services, Macager, was paid Ksh42.5 million for consultancy services on resource utilisation.
This was a second payment, the first one of Ksh19.6 million having been made to his account in July 2014. This payment too was not captured in IFMIS.
- This has also raised questions on effectiveness of IFMIS in government with the investigators probing how many more transactions are not captured.
- Using Endlevel Services, Macager allegedly provided non-existent consultancy services on youth employment at Ksh38 million and Ksh43 million was paid for poverty mitigation consultancy under Vilekat Information in November 2014.
- In March 2015, Endlevel Services received Ksh29.3 million while Vilekat received Ksh43.1 million for consultancy. Officials say the services are not elaborated.
- In November 2014, Macager’s company identified as Waveline Consultancy received Ksh22.9 million for consultancy services on best practices on RDAs and in March 2015 he received a further Ksh33.6 million for consultancy that is not elaborated.
- Investigations show Machira Limited, a company the former Treasury staffer incorporated in September 2014 received Ksh35 million for Kimira – Oluch Smallholder Farm Improvement Project (KOSFIP) in Karachuonyo and Rangwe in Homa Bay County.Some Ksh10.6 million was received in November.
- KOSIFP is a multi-billion project being implemented in Karachuonyo and Rangwe Constituencies with irrigation infrastructure for 1,474 hectares of land for food security and income generation under the Ministry of East African Community and Regional Development.
- Officials say their investigations have shown Macager invoiced a payment of Ksh35.9 million for consultancy services on recycling of non-existent industrial waste in North Eastern Kenya using Inktrauss Global Limited in June 2015. It is not clear if the payment was made.
- The firm further received Ksh15.5 million for Rio Olympics expenses in June 2016 and Ksh8.6 million for air travel expenses for fictitious teams and officials from the State department of sports development.
- An audit of his lifestyle shows Macager bought a block of apartments, luxury vehicles and toured Dubai.
He also bought two trailers and three prime movers, which he currently runs.
“These assets represent less than Ksh100 million of the Ksh600 million he received. It is not clear who received the rest,” states KRA statement. The obvious answer is the bulk of the money was channeled towards the 2022 secret election fund.
Macager was running three bank accounts that were frozen grounding him financially.
An accountant managed to deposit an average of Ksh5 million every month from the Ministry of Interior
Harambee House, which hosts Office of the President and Interior Ministry, is a haven of corruption cartels
Thomas Njogu Gitau an accountant at the Ministry of Interior managed to deposit an average of Ksh5 million every month in his 10 bank accounts despite earning Ksh120,000 as basic salary,.
However, when the law eventually caught up with him, he could not explain how he made the large sums of money.
Gitau, a senior assistant accountant general, also struggled before court to show proof of how he had accumulated property worth Ksh115 million in less than two years without once touching his salary. Gitau is not alone. Many more greedy Kenyans will soon join him.
His huge deposits and the enviable property, the court heard, coincided with his promotion to the position of senior assistant accountant general at the ministry where he was in charge of a floating budget known as “buffer cash”.
The Ethics and Anti-Corruption Commission (EACC), which has been investigating Gitau for months, revealed a business empire that is incongruent with the government official’s known income and pay declarations to the Kenya Revenue Authority (KRA) amid claims that he stole millions of shillings from taxpayers meant for emergency security operations.
Gitau has a posh house in Nairobi’s Thome estate worth Ksh27 million, a Ksh26 million property in Kitengela, Ksh17.5 million apartments in Kabete, another piece of land in Kabete and cash deposits of Ksh89.1 million made in 10 accounts at Family Bank, Equity Bank and Co-operative Bank of Kenya.
In his judgment, Justice John Onyiego ruled that EACC had convinced him that the property should be seized by the government because the couple had failed to give a credible explanation as to how they had acquired the property.
The anti-corruption body told the court that Gitau had illegally accessed office money referred to as “buffer cash” at the ministry, which he appropriated for his personal benefit. The money was deposited in various bank accounts on a daily basis through his wife and some through his lawyer — Kibatia and Company Advocates – clear evidence that lawyers are conduits of looted public funds.
The lawyers are so handsomely enumerated one can easily make Ksh 100 millions in a single transaction of hiding looted millions in a client’s account or much more cash for facilitating stashing of billions in offshore accounts. That is why lawyers scramble to defend the corrupt even when they are Members of Parliament or Senators. No wonder some lawyers in Kenya live like British Wall Street Queen’s Counsels.
All the deposits were in batches of less than Ksh1 million to escape the legal requirements that demand banks report to the Central Bank of Kenya all transactions above Ksh1 million.
“The plaintiff’s claim of Ksh108,678,542.29 translates to an income of Ksh5,775,138.65 per month during the period of interest, which represents an exceedingly steep increment in the first defendant’s revenue over a relatively short period,” said the EACC. “It should not be lost on this Honourable Court that this quantum leap coincided with his appointment to the position of Senior Assistant Accountant General at the State Department for Interior and Co-ordination of National Government.”
Gitau and his wife incorporated a limited liability company, Njegit Investments Limited, on February 2, 2017 and used it to purchase property worth Ksh53.6 million and a motor vehicle worth Ksh624,000. All this had happened within six months, when EACC commenced its investigations in August 2017.
EACC argued that the company was incorporated to launder the proceeds of economic crimes. Before commencing the case, EACC sought search warrants and raided Gitau’s office and homes where millions of shillings in cash were seized. Ksh1.24 million was found in his home while another Ksh7.3 million was found in his office desk. The money was both in Kenya Kshillings and US dollars.
In their defence, Gitau and his wife said some of the deposits were mostly made up of soft loans from two friends, each friend advancing them Ksh20 million. However, no schedules of payment or repayment were produced in court.
However, the loan agreements were scantily drawn and appeared meant to suit their defence, EACC argued. EACC further convinced the court that the two did not offer credible justification on the sources of the amounts.
Documents filed in court showed Ksh115,861,542, the difference between the cash deposits and withdrawals in the couple’s bank accounts over a period of 19 months from January 1, 2016 to August 31, 2017.
The commission argued that the money did not form part of Gitau’s known and legitimate sources of income and could have been acquired through corrupt conduct.
KRA records indicated that Gitau had declared the net income of Ksh120,000 as his sole earnings, setting the ground for his separate prosecution for tax breaches.
And on analysing his tax ledgers from KRA, EACC told the court that he had only declared his PAYE from his employment income while his wife and his associated companies had not declared any earnings since 2014, not even the rental income they claimed they were earning.
The court heard that both were directors of Njegit Investments Ltd, Wangmug Enterprises and Njetsah Enterprises.
- Gitau’s earnings totalled to Ksh1,893,414, within the period that he was being investigated. The commission further told the court that he did not make any withdrawals from his salary account during the investigation period.
- And within the said period, he had made cash deposits of Ksh89,160,542, money that was deposited in different bank accounts at various branches in Kasarani, Harambee Avenue, Kariobangi, Kitengela and Zimmerman among others.
- EACC moved to court after Gitau failed to explain the disproportion between the couple’s legitimate source of income and the assets acquired within the investigation period.
- According to the commission, if the huge deposits in their bank accounts were lawfully acquired, the two would have provided sufficient evidence in support of the source.
- The couple also said some Ksh55 million being questioned was earned after they sold a piece of land in Kaputiei, Kajiado County, but it emerged that they had included it among their assets in the wealth declaration forms and it was worth Ksh26 million.
“The said declaration of income, assets and liabilities was made after investigations had commenced and as such, the alleged income of Ksh55,000,000 is fictitious,” EACC submitted.
Out of the amounts recovered from his office and house, Gitau said he had no objection surrendering $2,000 out of $3,500 to the government. He also confirmed that Ksh6,983,000 seized from his office belonged to the government.
Gitau and his wife Teresia Njeri will now have to forfeit all these properties worth Ksh115.8 million after the EACC proved that they are the proceeds of corruption and theft – easy come, easy go!
Five arrested over misuse of Nandi County’s Ksh19.7m
Nandi County headquarters
Detectives from theEthics and Anti-Corruption Commission (EACC) yesterday arrested five former and current senior officials of Nandi County government over alleged misappropriation of over Ksh19 million.
Among the suspects are Leah Jelegat and Wilson Yebei who are currently working in the county government’s Agriculture department. The other three are former county officials.
According to EACC Chief Executive Officer Twalib Mbarak, former chief officer for Finance and Economic Planning Henry Maritim Koech authorised payments worth Ksh19,781,551 million to M/s Makiki Agencies Limited, a company which belongs to him.
“EACC received reports of misappropriation of Ksh19,781,551 at the county government of Nandi in award of a tender for supply of water dispensers and road construction which was facilitated by the head of procurement and other county officials,” said Mbarak in a statement to newsrooms.
Others who were arrested are MeKshack Oreu Tankoi and Henry Kibii Kirui who, together with Jelagat and Yebeiwere members of the tender committee. The five suspects were taken to Eldoret Central Police Station and will be arraigned today.
They will charged with abuse of office with Koech facing charges of conflict of interest and fraudulent acquisition of public property.
The arrests come at a time when Nandi Governor Stephen Sang is facing an uphill task in fulfilling his campaign pledges due to the bad blood between him, Senator Samson Cherargei and MCAs who have raised the alarm over corruption in the county.
Sang is already a marked man by the county assembly over alleged disappearance of Ksh177 million World Bank funds meant for infrastructure improvement in Kabsabet municipality. MCAs have questioned why there is little development within the municipality yet the donor funds were received two years ago.
The ward reps have accused the county government of doing “almost zero work” in the municipality yet it receives billions of shillings from grants, local revenue and national government disbursements.
EACC boss Twalib Mbarak: Action speaking louder than words
Governor Sang has also been accused of not allowing the municipality to operate independently after its board members were vetted and approved by the county assembly, leading to the resignation of some of them.
This report is part of Kenya Confidential FREE information to inform our readers about Corruption MENACE and dangers therein.
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