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standardmedia · 4 years

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Sh4bn deal that spoilt Covid-19 party at Kemsa

Mr William Willbroad Gachoka, who is also the brother of outspoken television personality Tony Gachoka, registered the company with a Chinese national, Mr Zhu Jinping. They each owned one share in the company.

At registration, the company had 1,000 nominal shares, which left it a lot of headroom to bring on board other shareholders. A few months later, the little-known company would be handpicked by the Kenya Medical Supplies Authority (Kemsa), and handed a Sh4 billion tender to supply 450,000 personal protective equipment (PPE) at Sh9,000 each.

Kilig was not on the list of thousands of pre-qualified companies with a history at Kemsa — it had no financial track record and no single PPE.

This would be the deal that spoilt the procurement party at the drugs agency, which would quickly escalate into a boardroom fight at the firm headquartered on Commercial Street in the capital city.

Indefensible

With this Kilig deal, Kemsa had exposed itself. It had broken all the rules, that even the suspended procurement boss, Charles Juma, said it was indefensible.

After it became apparent that Kilig would never be able to supply the tender, Kemsa cancelled it to save face.

It was too little, too late.

The anti-corruption detectives were already knocking on its doors and everyone would quickly rush into self-preservation mode.

And then names started coming out. Big election fundraisers had got some of the Covid-19 tenders, and had been paid. Connected businessmen fronted by the Health ministry had also received the Covid billions.

That was not all.

Ziwala Ltd, owned by Ms Samantha Ngina Muthama and Ms June Nduta Kinyua, is also among the beneficiaries of the Covid billions. The company is located on Ginge Road in Nairobi’s Westlands area.

Not part of Kemsa deal

Mr Murathe, who has remained in the shadows over his involvement with Kilig even as pressure mounted on him, has finally spoken, but only to deny that he was part of the Kemsa deal.

In an interview with Citizen TV on Tuesday night, Mr Murathe admitted that he knows Mr William Gachoka and Mr Zhu, who were the owners of the company at the time it got the tender.

Mr Tony Gachoka, had on several occasions linked Mr Murathe to the scam, mounting pressure on him to speak out. He has claimed that Mr Murathe will destroy his brother.

“The time for politics will come, but Kenya cannot allow impunity anymore. Stopping a tender does not excuse the illegality surrounding the issuance of several commitment letters by Kemsa to Murathe,” Mr Gachoka had said.

Mr Murathe, a known broker for Chinese companies in Kenya, has denied being a part of the Kemsa deal.

“I have partnered with William on a number of issues but not on this one. We are family friends from childhood. We are consultants. We do a lot of consultancy business.”

No procurement

“I have no connection with Kilig. I enquired from him (William) and he briefed me about their engagement with Kemsa. There was no procurement. Just a commitment to procure,” Mr Murathe said in a text message.

Trouble for Kilig started when it was unable to deliver the kits, despite having been issued with the commitment letters as well as several extension letters.

But when the heat became too much, its shareholding was conveniently changed and the company was handed to Ms Ivy Minyow Onyango, their lawyer. Mr Murathe said Ms Onyango works in William Gachoka’s office.

But in a twist to the saga, Mr Murathe sensationally claimed that some partners of Deputy President William Ruto, who he declined to name, had acquired the company after it bagged the Kemsa tender, but were also unable to raise the money required to fund the Kemsa tender.

“The lady (Ms Onyango) works in William’s (Gachoka’s) office. Actually, the only reason she came into play is because William and his partner had transferred the shareholding to known partners of Deputy President William Ruto and when they did not come through with the financing of the importation of the equipment, it reverted back to the original owners through their lawyer,” said Mr Murathe.

“Where is the theft? The reason for cancellation was inadequate budgetary provision. The reason Kemsa is in the spotlight is issuing commitment letters beyond their budgetary provision. I have never supplied or applied to supply any Covid-related materials or equipment, either directly or through third parties. To link me to Kilig through association with William is unfair,” he added.

Direct procurement

The suspended Kemsa procurement chief observed in an internal memo to his CEO, Dr Jonah Manjari, who is also suspended, that direct procurement for the emergency kits could only be used as a stop-gap measure in getting limited stocks to be used while the agency planned for a competitive procurement tender.

He said Kemsa had breached this by placing an order for kits in bulk that would have lasted a long time.

“From the Kilig Ltd commitment letter, the total quantity requested is 450,000 kits at approximate unit price of Sh9,000 bringing the total amount to Sh4,050,000,000. This is a huge and substantial quantity, which will last a long time and does not meet threshold of procurement under direct procurement for emergency,” wrote Mr Juma.

This single deal has now emerged as the last stroke that could break the Jubilee Party, having handed DP Ruto a fighting chance when it comes to corruption.

It has also given him a new weapon to fight Mr Murathe, whom he accuses of being the broker that is destroying the Jubilee marriage.

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africanlive · 4 years

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Sh4bn deal that spoilt Covid-19 party at Kemsa

A close childhood friend of Jubilee Party vice-chairman David Murathe registered Kilig Ltd on January 22 this year.

Kilig was not on the list of thousands of pre-qualified companies with a history at Kemsa — it had no financial track record and no single PPE.

This would be the deal that spoilt the procurement party at the drugs agency, which would quickly escalate into a boardroom fight at the firm headquartered on Commercial Street in the capital city.

Indefensible

With this Kilig deal, Kemsa had exposed itself. It had broken all the rules, that even the suspended procurement boss, Charles Juma, said it was indefensible.

After it became apparent that Kilig would never be able to supply the tender, Kemsa cancelled it to save face.

It was too little, too late.

The anti-corruption detectives were already knocking on its doors and everyone would quickly rush into self-preservation mode.

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24-news-world · 4 years

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Samantha Ngina Uhuru’s Youthful Niece Who Bagged Sh84 Million COVID-19 Tender

As the famous saying goes, One Man’s Meat is Another Man’s Poison.

While the rest of the world battled the unprecedented COVID-19 pandemic and its life-changing effects, a select few local and global entrepreneurs took advantage of the global gloom to turn around their fortunes and enjoy abnormal profits.

Despite businesses being some of the worst-hit victims of the deadly outbreak, some innovators, manufacturers, contractors and e-commerce investors collectively shared some of the biggest chunks of Coronavirus millions which circulated as nations rushed to respond to a virus which, in many ways, somewhat sparked a new world order.

Here in Kenya, a long list of companies that were previously grappling with brutal impacts of the harsh economic conditions suddenly roared back to life thanks to lucrative government tenders which saw them cash in millions.

According to Daily Nation, Uhuru Kenyatta received roughly Sh223 billion from several international players as part of his COVID-19 warchest.

The money was wired to Central Bank within 60 days and as the publication further revealed, Kenya Medical Supplies Authority (KEMSA) was the highest recipient of the funds since the government solely trusted the institution with the procurement of medical equipment.

Once the ‘great’ news hit the streets, some of the country’s biggest tenderpreneurs pitched camp at KEMSA offices yearning for a piece of the gigantic pie.

During the heat of the moment, some even chartered planes to China to physically fly in COVID-19 medical supplies while others prefered to wait for the goods (personal protective gear, ventilators and other medical items) to land in Nairobi, then snap them up in bulk.

A different group chose the strategy of waylaying nations at the airport and diverting them to private warehouses, waiting for the procurement whistle to be blown.

Records show that between the time Ministry of Health announced that the virus had come into the country and June 4, one State agency channelled close to Sh2 billion to nine companies for the government’s response to the pandemic.

This period of rushed resolutions gave some government ministries and county officials the perfect cover to break procurement laws, and order goods worth billions of shillings in bulk from little known companies and briefcase entities, some of which lacked the capacity to deliver.

The supply of PPEs and masks proved to be the most lucrative for companies, with many selling a single PPE kit for Sh9,000 and one KN95 mask for Sh700.

One such incident which stood out is that of one Ivy Minyow Onyango (barely 30 years old), who on January 22 (weeks before the pandemic’s first case was reported in Africa) walked into the companies registry and enrolled an entity named Kilig Limited.

Several weeks later, her company was handpicked and handed a Sh4 billion offer to supply hundreds of thousands of Personal Protective Equipment (PPEs), with each kit set to be delivered at an inflated cost of Sh9,000, from the then market price of Sh4,500, according to recent revelations in Parliament.

In another incident which somehow vindicates former Prime Minister Raila Odinga’s profound declaration during a 2016 press conference, another one of the firms reported to have received the mouth-watering tenders is Ziwala Limited, a firm deeply associated with members of President Uhuru Kenyatta’s family.

For a quick refresh of the mind, in October 2016, the then NASA Leader Raila Odinga called a press conference at his Capitol Hill Office where he sensationally accused President Uhuru Kenyatta’s extended family of being involved in the alleged Sh5.2 billion scandal at the Ministry of Health which was then under investigation (and has never been resolved to this day).

In front of the glaring cameras, Raila cited internal audit reports of the Ministry of Health (MOH) to show that Sandales International Ltd, which had been paid Sh41 million by Ministry of Health was owned by President Uhuru’s sister Ms Nyokabi Muthama, cousin Ms Kathleen Kihanya and Mr Samson Kamiri as directors.

“This scandal is President Kenyatta’s. He must deal with it as such. He must tell the country what he knows when he knew it and what he did when he knew it!” thundered an angry Odinga.

His words from four years ago are now once again as relevant.

According to the companies registry, Ziwala Limited is owned by Samantha Ngina Muthama (daughter to the President’s younger sister Nyokabi Muthama) and June Nduta Kinyua.

The firm was awarded a Sh84million tender to supply 120,000 pieces of KN95 masks, with KEMSA procuring the masks at an inflated price of about Sh700 per piece.

The retail price at the time was Ksh 500 per piece.

Samantha Ngina and June Nduta Kinyua Besides being cousins, Kathleen Kihanya and her cousin Nyokabi Muthama are also closely linked to the Kenyatta Trust. At the organisation, Nyokabi is a director while Kathleen is a mentor with President Uhuru as a Patron.

June Nduta Kinyua is Kathleen Kihanya’s daughter while Samantha Ngina Muthama is Nyokabi Muthama’s daughter.

On its official company website, ziwala.co.ke notes that the company is privately owned and managed.

Its directors are listed as June Kinyua and Njau Muriuki, both of whom are cousins as their mothers Mumbi (Muriuki’s mother) and Kathleen (June Kinyua’s mother) are siblings.

June and Njau are, therefore, niece and nephew to President Uhuru Kenyatta.

However, according to official search at the Company Registry dated 16th July 2020, the current directors and shareholders of Ziwala Limited are Samantha Ngina Muthama with 400 Shares and June Nduta Kinyua with 600 Shares.

Both also interestingly share a common address: P.O. Box 19495 GPO Nairobi.

How the daughters June Nduta Kinyua (Kathleen’s daughter) and Samantha Ngina Muthama (Nyokabi’s Daughter) bagged such a lucrative deal in a state agency has set tongues wagging, with many Kenyans worried that the critical Health sector might indeed be the first family’s preferred cash cow.

Also worth noting is that this fresh scandal involving Uhuru’s nieces and nephews comes barely a month after another family member Peter Kihanya suddenly increased his shareholding in betting firm SportPesa just days after the gambling industry giant regained its license and sports betting taxes were waived by Treasury Cabinet Secretary Ukuru Yattani.

Peter Kihanya is an uncle to both June Nduta Kinyua and Njau Muriuki being the elder brother to their mothers Kathleen and Mumbi Kihanya.

June is named after their late grandmother Grace Nduta, mother to Josphat Muiruri Kihanya, their patriarch, who passed on in 2016.

On the father’s side, June Kinyua is the daughter of Ernest Kinyua Kamau (Director of Tea Holdings Ltd based in Limuru) whose father is former nominated MP Jackson Kamau Chege as per court documents filed in 2007.

June Kinyua, a University of Buckingham graduate, appears to be the eldest of the three cousins who are linked to Zimala Limited.

From photos which have been circulating online, its rather evident she has already started a family.

Njau Muriuki also went to United Kingdom for further studies and graduated around 2015.

Samantha Ngina Muthama’s social media accounts reveal she is barely past her mid-twenties.

Both also interestingly share a common address: P.O. Box 19495 GPO Nairobi.

Peter Kihanya is an uncle to both June Nduta Kinyua and Njau Muriuki being the elder brother to their mothers Kathleen and Mumbi Kihanya.

June is named after their late grandmother Grace Nduta, mother to Josphat Muiruri Kihanya, their patriarch, who passed on in 2016.

June Kinyua, a University of Buckingham graduate, appears to be the eldest of the three cousins who are linked to Zimala Limited.

From photos which have been circulating online, its rather evident she has already started a family.

Njau Muriuki also went to United Kingdom for further studies and graduated around 2015.

Samantha Ngina Muthama’s social media accounts reveal she is barely past her mid-twenties.

In May, Health CS Mutahi Kagwe vowed to crush cartels in the Ministry of Health, but some very senior employees of the government who were perceived to be part of the cartels refused to be transferred. Seemingly, they enjoy protection from higher authorities, and Kagwe seems to have given up.

Despite the Ethics and Anti-corruption Commission (EACC) launching investigations into the Covid-19 billions, the investigations might not see the light of the day, like we have seen previously in scandals involving the first family.

It remains to be seen how the State House will react to this latest alleged scandal involving members of the first family.

In 2018, President Uhuru promised Kenyans that he will spare no one in the fight against graft.

“You can be my brother or my sister or my closest political ally but if you are corrupt we will fight you,” he then sensationally pledged.

But if the handling of the scandal involving Kathleen Kihanya and Nyokabi Muthama and their company Limited is any precedent, nothing will be done to Ngina Muthama, June Kinyua and Njau Muriuki or their company Zamala Limited.

Other firms that have landed multi-million-shilling contracts at KEMSA include Accenture Kenya Limited, whose ownership we could not verify with certainty as we could not find any company registered by that exact name at the company registry.

The mystery firm is among those that were awarded contracts, whose budgets were not covered by the Kemsa budget, putting them at the centre of the ongoing fraud investigations.

Abyssinia Group of Industries (AGI), like others, was awarded a contract to supply 30,000 pieces of N95 face masks at a cost of Sh900 each which saw the company make Sh27 million.

The name of the firm’s directors could not be found since its record does not exist on the online public portal of the registrar of companies.

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theboxtales · 4 years

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CORRUPTION DURING COVID-19 IN AFRICA

Yes, we all know – Africa has a serious problem with corruption. A 2002 African Union study estimated that corruption costs the continent roughly US$ 150 billion a year. Amid the COVID-19 pandemic – corruption continues to hemorrhage the continent. There are over 753 000 confirmed COVID-19 cases in Africa (as of 21 July). Corruption in the procurement of Personal Protective Equipment (PPE) can lead to the death of frontline health workers due to substandard PPE or delays in delivery to health facilities. Here are stories of corruption during COVID-19 in Africa.

Kenya

Ziwala Limited was awarded a Ksh 84 million (approximately US$ 775 000) tender to supply 120,000 pieces of KN95 masks. Kenya Medical Supplies Authority (Kemsa) is in hot water for procuring the masks at an inflated price of Ksh 700 (approximately US$ 6.5) per piece. The retail price was Ksh 500 (approximately US$ 4.6) at the time. Furthermore according to the companies registry, Ziwala is owned by Samantha Ngina Muthama and June Nduta Kinyua. Samantha Ngina Muthama is the niece of President Uhuru Kenyatta.

South Africa

Social development, headed by MEC Nonhlanhla Khoza, purchased 48 000 blankets, sanitisers, soap and other hygiene equipment, for distribution to Kwazulu Natal’s 12 districts. None of the purchases were made directly from manufacturers, but instead from a number of middlemen, who added their mark-up after purchasing the blankets, sanitisers, soap, face cloths and hand pumps from manufacturers. The contract was awarded without a tender, using emergency powers in terms of treasury regulations.

Royal Bhaca Projects was awarded a tender from the Gauteng Department of Health for personal protective equipment (PPE) amounting to R125-million (approximately US$ 7.4 million). The company is owned by the disputed amaBhaca King, Thandisizwe Diko. He is the husband of the President’s Spokesperson Khusela Diko. The Diko family is close family friends with Gauteng Health MEC Dr Bandile Masuku.

Uganda

The government initiated a program to provide food relief for vulnerable citizens amid the coronavirus pandemic. Four government officials connected to the project inflated the relief food prices. Losses are estimated to exceed US$ 528 000.

Zimbabwe

Zimbabwean Health Minister Obadiah Moyo awarded a US$60 million tender to shelf company Drax International LLC to procure COVID-19 test kits and medical equipment. Drax International invoiced the government an inflated price of US$ 28 for disposable masks whose wholesale price is under US$ 4 from reputable local suppliers. The company Drax International’s director Delish Nguwaya is linked to the president’s son, Colin Mnangagwa.

Corruption cripples governments’ capacity to fight COVID-19. Cronyism, overpricing, mismanagement and corruption of public funds during the pandemic is unconscionable and deadly.

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