Former Knec boss Paul Wasanga earned Sh700,000 annually to award printing tender for exam material to British firm

Former Kenya National Examination Council chairman Paul Wasanga is alleged to have received kickbacks amounting to Sh703,785 for every year that he awarded tenders for printing of examination documents to British firm Smith and Ouzman.

The damning allegations surfaced in an ongoing fraud case before the Southwark Crown Court in London, UK where the firm is accused of unduly influencing tendering processes for organisations in foreign countries.

This is in contravention of the European nation’s Prevention of Corruption Act (1906) which bars undue influence on employees of foreign governments to have decisions made in favour of British businesses.

Former KNEC chairman Paul Wasanga

Although the prosecution lawyers and the forensic experts from the Serious Fraud Office who have pressed the charges are yet to establish how many years Wasanga received the kickbacks, they have said that in 2009 and 2010 alone, the Kenya government through the Ministry of Education paid a Sh40 million to Smith and Ouzman for Optical Mark Reader forms used in KCPE examinations, certificates, photo collection forms and mark sheets.

“The corrupt payments were built into Smith and Ouzman’s pricing of the printed materials so that the inflation in the price as a result of that corruption was passed onto those funding the institutions that contracted with Smith and Ouzman,” prosecution lawyers said according to court documents.

In the duration of the dealings between Knec and Smith and Ouzman, the court was also furnished with details of Wasanga’s annual trips to the UK, fully paid for by the printing firm to maintain a work relationship.

The court documents further detail proceedings in which prosecution said that Knec officials Mwai Nyaga the deputy CEO, Geoffrey Gitogo the ICT manager, Ephraim Wanderi and Michael Ndua the principal supplies officer each received Sh90,000 to facilitate the awarding of the tenders.

Smith and Ouzman’s country agent Trevy James Oyombra received authorisation from the firm’s top brass, which was mainly the former chairman Christopher Smith and his son Nick Smith the sales and marketing director, to pay the Knec officials after receiving payment for the examination documents.

The court also heard how Smith and Ouzman extended the gratuity payments and gestures to the family of the Knec officials, a thing which Christopher Smith said was above board as they were gifts given to the families of friends.

“There is nothing wrong in giving gifts to a friend. It was, however, no coincidence that the gifts to Wanderi’s son were made at the time Smith and Ouzman were on a drive to get back the business with Knec which they had lost,” the prosecutor told the court.

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Raila demands resignation and arrest of Hassan, Chirchir and others named in 'Chicken' scam

The Cord coalition has called for the immediate resignation, arrest and trial of IEBC chairman Isaac Hassan, Energy CS Davis Chirchir and others allegedly involved in a Sh50 million electoral material scam.

Cord leader Raila Odinga termed the allegations “very damaging and very shameful", saying “accountability must begin at the top”, during a press conference on Tuesday.

“We demand the immediate arrest of Mr Trevy James Oyombra who is reported to have been the Kenyan making hefty payouts to Kenyan officials to influence the award of printing contracts to the UK firm. He must be sought and held to account," he said.

Raila further demanded the investigation and audit of all commissioners and principal officers of the IEBC.

He said KCB, to which money was allegedly transferred for Oyombra for onward distribution, must help the investigations and disclose how much was transferred to those implicated.

He said that those who worked at the IEBC but have since been deployed elsewhere or sacked must also be investigated.

“We demand answers on what the government knows and when they knew it. We refuse to be party to the conspiracy of silence. What is being adduced in court in London points to a serous, baffling and shameful integrity and credibility gap on the part of these present and former officers and an indictment of the Jubilee regime.

"It cannot be that Jubilee does not know what these officers did. We have an intelligence service that is required to do background checks on people before they are appointed to key public positions like that of Cabinet Secretary,” Raila added.

He said the accused who asked for “chicken” from the printing company took their corrupt ways, integrity questions and credibility gaps into an election, saying the case was similar to what happened just before independence

“We maintain that we cannot let the past and its ghosts rest. We reject the doctrine of “accept and move on” while our nation suffers. We must take charge of the future," Raila stated.

Chirchir, Gladys Shollei and James Oswago are among five former IIEC officials named for colluding with a British printing firm, Smith and Ouzman, to defraud the public coffers of the money in an ongoing case before a British court. Chirchir was then IIEC's senior manager.

Officials serving in the IIEC, that preceded the IEBC, asked for bribes to influence the awarding of a printing tender for electoral documents to Smith and Ouzman, prosecution lawyers working with forensic auditors from the UK’s Serious Fraud Unit told the Southwark Crown Court.

The others implicated in the case are suspended IEBC CEO James Oswago who served in the same capacity at the IIEC, former chief registrar of the judiciary Gladys Boss Shollei who was IIEC's Deputy Chief Electoral Officer, lawyer Kennedy Nyaundi who was a commissioner and senior procurement officer and financial director Kenneth Karani.

Trevy James Oyombra who brokered the deal between the IIEC and the printing firm was also mentioned as one of the beneficiaries of the kickbacks. Hassan is not directly mentioned in the case.

Smith and Ouzman won tenders to print ballot papers used in the 2013 General Election and Knec certificates.

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Charismatic Homa Bay Senator Otieno Kajwang' dies of cardiac arrest at Mater Hospital

Homa Bays senator Otieno Kajwang died late Tuesday night following a heart attack.

The vocal ODM loyalist best known for his rallying Mapambano song mostly sung during election campaigns complained of chest pains while in his Nairobi home.

According to ODM communications officer, Philip Etale, Kajwang died at Mater Hospital at around 11:34PM where he had been rushed for treatment.

Kajwang’ served as the Immigration Minister between 2008 and 2013.

Kajwang’s brother and Ruaraka MP Tom Kajwang’ said his brother’s passing was untimely and sad and expressed gratitude for for the condolences which he said were streaming in.

Senate majority leader Kithure Kindiki said the loss of Kajwang’ was a big blow to the senate. “We have lost a great debator, a great senator and lawyer,” Kindiki said.

Elgeyo-Marakwet senator Kipchumba Murkomen also sent his condolences to the family of Kajwang’ saying the death was a shock to him.

“So shocked that my colleague and friend senator Kajwang’ has passed on. I will remember him as passionate and eloquent debator. A man full of life and humor,” Murkomen posted on his Twitter account.

Makueni senator Mutula Kilonzo Junior also condoled with the family of Kajwang’ following his death.

“Rest in peace my brother, learned friend and senator, Otieno Kajwang. Mapambano mbinguni,” Kilonzo said.

Kajwang’ is the second senator to pass on while in office. On April 27, 2013 Mutula Kilonzo died under unclear circumstances while in his home in Maanzoni lodge. Investigations findings into his death have never been made public.

Kajwang’s body will be moved Wednesday morning to Lee Funeral Home for public viewing.

Source: the star

Homa Bays senator Otieno Kajwang died late Tuesday night following a heart attack.
The vocal ODM loyalist best known for his rallying Mapambano song mostly sung during election campaigns complained of chest pains while in his Nairobi home.
According to ODM communications officer, Philip Etale, Kajwang died at Mater Hospital at around 11:34PM where he had been rushed for treatment.
Kajwang’ served as the Immigration Minister between 2008 and 2013.
Kajwang’s brother and Ruaraka MP Tom Kajwang’ said his brother’s passing was untimely and sad and expressed gratitude for for the condolences which he said were streaming in.
Senate majority leader Kithure Kindiki said the loss of Kajwang’ was a big blow to the senate. “We have lost a great debator, a great senator and lawyer,” Kindiki said.
Elgeyo-Marakwet senator Kipchumba Murkomen also sent his condolences to the family of Kajwang’ saying the death was a shock to him.
“So shocked that my colleague and friend senator Kajwang’ has passed on. I will remember him as passionate and eloquent debator. A man full of life and humor,” Murkomen posted on his Twitter account.
Makueni senator Mutula Kilonzo Junior also condoled with the family of Kajwang’ following his death.
“Rest in peace my brother, learned friend and senator, Otieno Kajwang. Mapambano mbinguni,” Kilonzo said.
Kajwang’ is the second senator to pass on while in office. On April 27, 2013 Mutula Kilonzo died under unclear circumstances while in his home in Maanzoni lodge. Investigations findings into his death have never been made public.
Kajwang’s body will be moved Wednesday morning to Lee Funeral Home for public viewing.
- See more at: http://www.the-star.co.ke/news/charismatic-homa-bay-senator-otieno-kajwang-dies-cardiac-arrest-mater-hospital#sthash.JHBERciP.dpuf

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Make or break as Raila tackles fallout

Raila Odinga

The disciplinary Committee set up by ODM leader Raila Odinga to investigate the the violent ejection of Executive Director Magerer Lang’at from a meeting sits on Tuesday as the party enters a defining moment that could determine its future.

Mr Lang’at and Nominated Senator Elizabeth Ongoro are among those summoned to appear before the team which is chaired by lawyer Fred Athuok.

“I really want to allow the committee to do its work so please let me not delve so much into this,” Ms Ongoro said when asked about her summon.

The many events happening in ODM set the stage for a National Governing Council (NGC) planned for the end of the month. The NGC will lay ground for the National Delegates Conference early next year where new party officials will be elected.

Mr Odinga’s spokesman Denis Onyango said there was pressure to streamline things in ODM.

“Various groups have called on Raila to steady the ODM ship as the symbol of the reform movement in Kenya. They include opposition leaning church leaders, civil society Organisations and remnants of the so called second liberation group. Some are pushing for audience with him in the week over concerns about the turbulence” he said.

Mr Odinga is said to be considering meeting two ODM MPs who met with Machakos Governor Alfred Mutua in Mombasa alongside Mr Lang’at and posted a telling picture online on Thursday.

Mr Odinga, who also leads the Opposition Cord, is said to have asked Budalang’i MP Ababu Namwamba and his Kilifi North counterpart Gideon Mung’aro for a private meeting in Nairobi .

NOTHING SINISTER
Mr Odinga and his Cord co-principal Kalonzo Musyoka — leader of the Wiper party — are said to have been unhappy on Thursday after Mr Mutua posted the photo online.

The two party leaders are said to have made frantic phone calls immediately the photos were circulated seeking to know the agenda of the meeting.

Many in Cord believe the meeting was not by chance even though Mr Namwamba says there was nothing sinister .

A Senator allied to Mr Odinga, but who did not want to be quoted for fear of reprisals, said the party leader was particularly keen to find out from Mr Namwamba the motive of the meeting.  

Mr Namwamba could neither confirm nor deny the said phone conversation with Mr Odinga.

“We talk to Mr Odinga very often, perhaps it could be of help if you could specify which day you are referring to. But then again, why would I divulge the content of our conversation even if he called.
That would not be gentlemanly,” said Mr Namwamba.

Mr Odinga and Mr Musyoka are facing a revolt from within their parties.

NAMWAMBA RESTLESS
Governor Mutua is perceived to be working closely the Jubilee government against his party’s wishes while Mr Mung’aro has been leading rebel Cord MPs in Coast and is perceived to be working against the party.

Mr Namwamba is considered to be restless within the party, especially after the botched February 28 elections in which he wanted to be secretary-general.

Critics have labelled him a mole for his perceived closeness with Deputy President William Ruto, but he has consistently rejected the claims.

The Budalang’i MP downplayed the significance of the picture taken at the Coast.

“There is absolutely no reason for hysteria or paranoia when four brothers from the same political divide congregate. All those are Cord birds and they flock together in the Cord house,” he told Sunday Nation.

Prof Morris Mbondenyi of Africa Nazarene University’s School of Law says there is more to the meeting than meets the eye.

“When four birds of the same feather flock together, then know there is something cooking and it is just a matter of time before everything bares itself,” he said.

DISCPLINARY ACTION
Mr Mung’aro has publicly stated that he is no longer interested in the affairs of ODM after he was accused of working with the Jubilee government.

He has since been stripped of Minority Whip post in the National Assembly and replaced with Wundanyi MP Thomas Mwadeghu.

“Having lunch together is nothing to raise eyebrows and as brothers and sisters, we will have more breakfasts and dinners in the coming days,” Mr Mung’aro said.

Mr Lang’at, who was violently ejected from an ODM meeting on October 30 and is facing disciplinary proceedings for allegedly criticising the party, said it was wrong to use the mole label against some leaders.

“I am not a mole. In fact, if there is a mole in ODM, then it is Mr Odinga because he talks to the President and his deputy,” said the embattled executive director.

Talk is rife in ODM that those who are not happy with how the party is being run could be working an alternative political vehicle.

A youthful MP, who did not want to be named for personal reasons, told the Sunday Nation that their reasoning was that they were “not stuck with ODM”.

On the planned exit, Mr Namwamba said he has never considered quitting the Orange party.

“We could be having issues, but my continued stay in ODM is not in doubt. I have heavily invested here to quit,” he said.

Mr Musyoka is on record asking Wiper members who are not ready to toe the party line to resign. Governor Mutua is among Wiper leaders opposed to Cord’s Okoa Kenya referendum campaign.

MISLEADING ODINGA
What began as a trickle for Mr Odinga when a team of youthful ODM members— including Mr Namwamba, Kisumu Central MP Ken Obura and Mombasa Governor Hassan Joho— told the party leader early in the year to allow a breath of fresh air into the leadership has now become a torrent.

Ugunja MP Opiyo Wandayi said the “rebels” would soon be held to account. “We are putting party rebels on notice. We are taking the battle to their door steps.”

Sunday Nation has learnt that at least seven MPs from Nyanza, Mr Odinga’s stronghold, could be in trouble for what is understood to be lukewarm support for the party.

Mr Obura who expressed interest in the secretary-general position in February before he dropped his bid could be one of them.

Others are David Ochieng’, Agostino Neto, Ms Millie Odhiambo, Mr Silvance Osele and Mr George Oner.

But they appear undeterred. Mr Ochieng’ said instead, they intended to kick out their colleagues they accuse of misleading Mr Odinga.

Source: Nation Media Additional report by Mwakera Mwajefa and Elisha Otieno.

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I AM IN CONTROL OF ODM - RAILA

ALL IS WELL: Funyula MP Paul Otuoma and Cord leader Raila Odinga at Aga Khan Hospital yesterday where they visited Bungoma Senator Moses Wetang'ula.Photo/Maurice Alal

 

CORD leader Raila Odinga yesterday rebuffed critics questioning his grip of ODM and maintained he is in full command, even as some politicians upped calls for internal elections to fix what they called ruinous mismanagement. 

Polls do appear to be in the offing, perhaps early next year, as the National Governing Council is to meet late this month to set a date.

“May you rest assured that ODM is alive and will not disintegrate,” Raila told thousands of supporters in Kisumu's Kondele grounds.

“I call on you not to panic as I am in control of the party. Nothing will go unresolved. The swelling of frogs cannot deter cows from drinking water.” 

The Orange party leader downplayed mounting assertions that the country's single largest political entity was headed for disintegration, terming them wishful thinking by his opponents.  But several MPs speaking in Mombasa told Raila he needs to clean up the party "mess" and schedule new internal elections.

The last party polls were broken up on February 28 by hired "Men in Black" as a younger generation of leaders appeared poised to take over from the old guard. They have not been rescheduled.  The outspoken MPs includeAbabu Namwamba (Budalangi), Manson Nyamweya (South Mugirango), Ken Obura (Kisumu Central) and Richard Onyonka (Kitutu Chache South).

  They spoke to the press after a meeting of the Parliamentary Accounts Committee, which Namwamba heads.  “ODM is like a beautiful apartment block.

Our duty is to ensure  we clean up this house — we fix roof, fix the floors and make sure that we keep the tenants within and attract even more people,” Namwamba said.  “It is symptomatic of systemic failure and institutional collapse. We have a responsibility as a party to arrest this malaise.
That is why I am calling upon my party leader, whom we all support, to take firm control and lead us on a path to clean up this mess," he said. 

In Kisumu, Raila tried to reassure his ODM supporters at a time of crisis following the physical assault and ejection of  executive director Magerer Lang'at from office last week and claims that party rebels are plotting a breakaway party  Raila was accompanied by Senators Moses Wetang’ula (Bungoma) and Bonny Khalwale (Kakamega). Wetang'ula had been discharged from hospital in Kisumu where he was treated after collapsing. He said it was caused by fatigue. 

Raila addressed the crowd as it emerged he could have given the nod for fresh polls, overruling hardliners supposedly opposed to leadership change in ODM.  In the clearest indication that repeat polls could be held soon, the National Governing Council will met on November 28 to set the date for elections. It brings together governors, senators, MPs, women and youth leaders.

"The National Executive Committee agreed that the governing council be convened to plan elections, so these matters can be put behind us and we can  focus on strengthening the party,"  an NEC member told the Star on the phone. 

Speaking on condition of anonymity because of the sensitivity of the subject, he said elections are likely to be held early next year though people surrounding Raila want them delayed to mid-2015. 
The Star has independently established that supporters of the status quo were behind the hounding out of Magerer Lang'at to take control of the delegates register because they fear elections. 

The position of chief executive officers is powerful because he is the custodian of crucial party documents, including contentious lists of delegates ad members. 

MP Obura (Kisumu Central) told the Star in an interview: "A small clique of individuals who fear internal elections are hell-bent in scuttling party polls as long as they are the ones in charge.”  “Anybody who opposes them is branded a mole. That is dangerous for the party. Only proper elections will salvage the party,” he said.

  MP Nyamweya said:    “I urge the party leader to spend much more time in ODM than dealing with Cord affairs, unless the coalition will be transformed into a political party."  MP Onyonka said it is high time Raila took charge and called for elections to rebrand and reposition ODM as a party for the future.

Otherwise, the party is "doomed," he said.  “We are aware that the process of ousting Magerer in that uncouth manner is a precursor for the elections to be rigged. The party is getting finished because some people don't want to listen to divergent opinions,” he told the Star on phone. 

Meanwhile, Magerer has told the Star he will probably not honour the party summons to appear on Tuesday before tuesday before a disciplinary committee looking into the troubles at Orange House, the ODM headquarters.  “I am not aware of the summons. I will make up my mind after reading it, but from the way things are going, I might not honour it."

Source: the star

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ANGLO LEASING: THE REAL STORY

Anglo Leasing’ is a generic term which refers to 20 irregular national security sector contracts awarded by the Kenyan Government for acquisition of ‘security related’ goods and services. In 2006, the Auditor General told Parliament that the total value of the scam was Ksh56 billion (USD 777 million).

Initiated in 1997, the contracts were two-pronged: a contract for supply or installation of security equipment or accessories; with a simultaneous financing contract by which the Government ‘borrowed’ funds sourced by the suppliers to pay for the goods being bought under the first contract. Because the contracts involved external credit, parliamentary authority should have been obtained, but this was circumvented on the grounds of national security secrecy.

BENEFICIARY?: Naivasha maximum securuty prison

When the details of the contracts were made public by an opposition Member of Parliament in 2004, it was quickly discovered that the various suppliers and financiers were really inter-related parties traceable to Deepak Kamani and Anura Perera, both businessmen with strong political links. The credit finance agreements were found to be fraudulent by the Auditor General and two Parliamentary investigations; in 2004 and 2006. No credit was received by Kenya under any of the credit agreements, yet Kenya continues up to this day to repay purported Anglo Leasing debts.

In May 2014, Kenya paid off two claims to the tune of Ksh 1.43 billion (US$16.8 million) to First Mercantile Securities Corporation and Universal Satspace Corporation which had managed to obtain judgement on the Anglo Leasing promissory notes in London and Geneva. Within days another claimant Ciara Systems was reported to have lodged its own demand. During the last years of the Grand Coalition Government other out of court settlements paid outstanding balances of contracts with the suppliers and financiers of a Navy ship and a defence command centre.

All Anglo Leasing contracts shared certain features. All were awarded to ghost companies, that could not be traced to where they claimed to be incorporated via conventional searches; further the Government officials they dealt with all denied knowledge of who the principals or agents of the companies were. The preferred security procurement method (single-sourcing) was exploited in all the contracts to circumvent procurement procedures and remove competition, publicity of the tender and other legal requirements.
The contracts were grossly overpriced., and the credit finance did not materialise even though Kenya issued irrevocable promissory notes binding the country to repay the fictitious debts in full. Each contract was given additional consideration by a legal opinion from the Attorney General declaring that the contracts were in conformity with all legal requirements and bound Kenya to pay.

These legal opinions prejudiced Kenya’s defence of legal claims filed against her by suppliers and contractors in foreign courts. Despite overwhelming evidence that Kenya was defrauded, our collective legal interests have been compromised by impunity. Significant individuals in Kenya’s political elite under 3 Governments are too implicated either as beneficiaries of the scandal or because they were involved in the cover-up. The Anti Corruption Commission has been investigating this scandal since 2004 with no successful prosecution of the main players who are actually well known. The Anti Corruption Commission is hamstrung because there is no political will to unravel those behind the scandal and even less appetite for the political sacrifices that would have to be made to enforce culpability against those who committed Kenya and those behind the companies that received Anglo Leasing payments.

Ten years after the Anglo Leasing scandal was first exposed no serious domestic effort has been made to halt the contracts and payments, nor to defend the country against lawsuits by creditors holding the Anglo Leasing debts; neither to punish the Government officials who entered into the contracts. Despite the domestic log-jam, there is a glimmer of hope that there may yet be accountability for the Anglo Leasing fraud. Some foreign authorities have approached the Kenyan Government seeking Mutual Legal Assistance (provided for under the United Nations Convention Against Corruption) with a view to obtaining evidence to support prosecutions against entities within their jurisdiction connected to the Anglo Leasing scandal.

On 30 October 2014, in the case of Chamanlal Kamani, Deepak Kamani & Rashmi Kamani v Attorney General, Justice Lenaola of the Constitutional Court dismissed an attempt by 3 suspects facing prosecution in Switzerland who wanted the court to block the Attorney General from supplying Swiss authorities with information on the scandal ; which the Swiss want to use to mount prosecutions against Swiss based persons and corporations. Until Kenyan footdragging ended prospects of Mutual Legal Assistance in 2009, the UK Serious Fraud Office said it was investigating several UK entities that received funds from the Government of Kenya and were signatories to Anglo Leasing type contracts.

The Serious Fraud Office Director at the time said that he would consider reopening the investigation if evidence was received from Kenya in the future. Now that the Ethics and Anti Corruption Commission and the Attorney General have given Mutual Legal Assistance to the Swiss authorities and handed over detailed evidence dockets, it is hoped the same would apply to the UK investigation, which had already obtained evidence from France, Spain and Switzerland.

In May 2014, President Kenyatta, in order to salvage Kenya’s US$2 billion Sovereign Bond offering, ordered payment; he did say though that other avenues for accountability were still to be pursued against the well known Anglo Leasing suspects. This is what Kenyans want action on. Below is a table indicating the details of the Anglo Leasing contracts and those involved:.

BENEFICIARY?: Naivasha maximum securuty prison. The Kenya Prisons Security and Telecommunications Project is on the long list of Anglo Leasing Security Related Contracts.

PRIME SUSPECT: Deepak Kamani. In the case of Chamanlal Kamani, Deepak Kamani & Rashmi Kamani v Attorney General, Justice Lenaola of the Constitutional Court dismissed an attempt by three suspects facing prosecution in Switzerland.

STORIED WHISTLE-BLOWER: John Githongo. For his role in exposing the Anglo-leasing scandal from right within the Kibaki political establishment, the former PS Ethics and Governance had to flee into exile in the UK to escape the threat of assasination.

KEY PLAYERS IN THE CURRENT INTERNATIONAL DRAMA:Attorney-General Githu Muigai

KEY PLAYERS IN THE CURRENT INTERNATIONAL DRAMA:Swiss ambassador Jacques Pitteloud

KEY PLAYERS IN THE CURRENT INTERNATIONAL DRAMA:Cabinet Secretary for the Treasury Henry Rotich

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