On September 13, 2021, Burqa Ventures was said to have received an undisclosed amount of money from Marsabit County for services rendered.
Within hours, the company was found to have withdrawn Sh700,000 from its account and sent it to another company, Northern City Coaches Ltd.
Northern City Coaches Ltd is majority-owned by Alamitu Guyo Jattani, one of the wives of Marsabit Governor Mohamud Ali.
In another case, Qoorti Ltd allegedly sent Sh300,000 to the governor's wife after being paid by Marsabit County. Qoorti Ltd is owned by Godana Halake, the governor's personal assistant.
Similar money flows have emerged with several county contractors, prompting the Ethics and Anti-Corruption Commission (EACC) to launch investigations into what it believes could be kickbacks allegedly paid to the governor and his family.
Some of the contractors are owned by county officials. Mr Ali and more than a dozen other county employees have recorded statements with the EACC, which is investigating procurement irregularities in Marsabit County dating back to 2013.
The probe could see several former and current officials charged, with preliminary investigations suggesting taxpayers may have lost at least Sh8 billion to numerous corruption networks in the devolved unit.
“The investigation started in 2023 and is ongoing. The commission cannot share details at this stage,” said EACC spokesperson Eric Ngumbi.
In August, the EACC asked Northern City Coaches Ltd to produce all contracts or other documents that would justify why a county contractor sent money to a company owned by the governor's relatives almost immediately after receiving funds from the same county for work done.
It is unclear whether Northern City Coaches has provided investigators with any supporting documents.
However, Nation.Africa has learnt that conflict of interest and abuse of office top the long list of charges that could be brought against several individuals.
The investigation covers the supply of cereals and other foodstuffs, water trucking and car hire, branded promotional items, building services, catering services, conference packages, medical equipment, office equipment, motor vehicle repair and spare parts, sanitary items and water tanks, among others.
The main persons of interest in the investigation are Governor Ali, his wives – Ms Jattani and Ms Rukia Abdikadir – Mr Halake and his company Qoorti General Contractors Ltd, and Huka Wako Bidhu and his two companies: Burqa Ventures and Ororo Company Ltd.
Governor Ali has not responded to numerous calls, text messages and WhatsApp messages sent by Nation.Africa to his known mobile phone number over the past three weeks.
However, he recorded statements with the anti-graft agency in April following his arrest and in September following a summons by the EACC.
In April, Mr Ali was picked up along with his personal assistant Mr Halake, procurement officer Zaitun Ali Nuro and Burqa Ventures director Huka Wako Bidhu.
His wives, Ms Jattani and Ms Abdikadir, also appeared before the EACC.
Mr Halake is also a shareholder in Umuro Gufu Sharamo, another county contractor. Mr Nuro owns Partone Investments Ltd and Latu Waye Enterprises.
Former governor Ukur Yatani, who also served as Treasury CS in Uhuru Kenyatta's second term, was also arrested at the time.
Detectives raided the homes of Mr Ali, Mr Yatani and his nephew Ibrae Doko Yatani. Officers seized Sh62 million from the younger Mr Yatani's house.
Staff from the departments of Finance, Roads, Health and Sports have also recorded statements with the anti-corruption investigators.
For example, investigators say Al Imran Investments Ltd was awarded 13 contracts for "financial management services" and "county executive services" with a total value of Sh332.6 million.
Al Imran Investments is one of the companies under investigation. It was incorporated on December 9, 2010. Its owners are Hussein Isaak Hassan and Alinoor Dube Hassan, who each hold 500 shares and are also directors.
Another set of tenders under scrutiny involves five companies – Blue Nile EA Ltd, Midroc Water Drilling Company, Qoorti General Contractors, Burqa Ventures Ltd and Ororo Company Ltd – which were awarded a total of 83 contracts by Marsabit County.
Midroc is owned by Marsabit Senator Mohammed Chute, who has become one of Mr Ali's rivals.
In August 2023, Mr Chute wrote to the EACC, attaching a bundle of documents he claimed contained irregular payments by the county to several suppliers, as he asked the agency to investigate procurement fraud in the county.
The five companies have so far been paid Sh365 million for 63 contracts. In various transactions, the companies transferred a total of Sh6.3 million to Governor Ali.
In another set of contracts under investigation, Partone Investments was awarded at least 13 contracts worth Sh41.7 million.
Marsabit is one of the counties that has received several negative Auditor-General's reports in the past, largely due to the failure to provide supporting documents for various expenditures, casting doubt on the accuracy of the devolved unit's true financial position.
The county has also been faulted by the Auditor-General for huge discrepancies between declared cash balances and those listed in the submitted documents, stalled projects, retention of employees beyond retirement age and several other irregularities.
In the 2022-23 financial year, the county was also faulted for not using e-procurement, which is against the law.
