Scholarship scam: How top Uasin Gishu officials colluded with bank, agents to fleece parents
According to report tabled at the County Assembly, several senior Uasin Gishu officials are among irregular beneficiaries of funds meant for the students.
What you need to know:
- Protesting parents led by Mr Reuben Chepses Koech told the committee those who applied for the opportunity were required to pay an interview fee of Sh6,500, but were not issued with receipts for the payment.
- The students were then required to pay 8,650 euros — equivalent to Sh1.19 million in school fees, Sh80,000 accommodation fee for three months, Sh30,000 insurance fee, Sh49,000 for a visa, Sh5,000 for Covid test and 100,000 for their flights.
Senior Uasin Gishu County officials colluded with financial institutions and agents to fleece parents of millions in a Finnish scholarship scandal that saw learners airlifted and dumped in Europe, a county assembly committee now reports.
The ad-hoc committee of the Uasin Gishu County Assembly, which was formed in early February to investigate the scandal after affected parents complained, has recommended disciplinary action against officials implicated in the scam. It has further recommended a refund of money paid as fees by parents under the much-hyped Uasin Gishu students airlift programme.
The 12-member committee was formed to establish, among others, the legalities on which the Finland scholarship programme was anchored.
Following its investigation, the team, whose report was endorsed by the county assembly for consideration, now wants the Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and other relevant agencies to move in and investigate the implicated senior county officials for forgery, abuse of office and integrity.
The committee led by Mr Gilbert Chepkonga has endorsed the recovery of the stolen money to support some of the students who are said to be stranded in Finnish universities.
According to the report, the Uasin Gishu County Government, under the stewardship of former Governor Jackson Mandago, now the Uasin Gishu Senator, opened the ‘Uasin Gishu County Government Overseas Trust Fund’ account in Kenya Commercial Bank (KCB) for purposes of receiving tuition fees for the students benefiting from the scholarship programme.
Kept in the dark
Uasin Gishu County Senator Jackson Mandago. On September 14, 2021, Mr Mandago flagged off the first batch of 51 students to travel to Finland to study in a partnership that sought to produce qualified health personnel for the international labour market, while at the same time addressing youth unemployment.
Protesting parents led by Mr Reuben Chepses Koech told the committee those who applied for the opportunity were required to pay an interview fee of Sh6,500, but were not issued with receipts for the payment.
The students were then required to pay 8,650 euros — equivalent to Sh1.19 million in school fees, Sh80,000 accommodation fee for three months, Sh30,000 insurance fee, Sh49,000 for a visa, Sh5,000 for Covid test and 100,000 for their flights.
The eligible candidates were issued with acceptance letters from their respective universities, while the County Government of Uasin Gishu issued them with a certificate of full scholarship.
On September 14, 2021, Mr Mandago flagged off the first batch of 51 students to travel to Tampere to study in various fields, in the partnership that sought to produce qualified health personnel for the international labour market, while at the same time addressing youth unemployment.
However, according to the report by the committee, the implementation of the programme was a highly guarded secret that even then-county head of Education Joseph Kurgat was kept in the dark, despite it being under his docket.
Mr Kurgat told the committee that the programme was not discussed at the county Cabinet level and no policy framework was tabled for Cabinet approval.
He cited numerous frustrations by his juniors on operations of the programme that necessitated him to seek the intervention of Mr Mandago to have the officers provide relevant information so that his office could respond to issues raised by parents.
According to the report, the programme was being managed by Mr Joseph Maritim, the immediate former chief officer in the Department of Youth and Sports and principal trustee, Mr Joel Ruto, director, Uasin Gishu County Education Revolving Fund and Trustee, Mr Meshack Rono-Deputy Director, Uasin Gishu County Revolving Fund and Trustee, among others.
Forgery, abuse of office
The committee has recommended that EACC, DCI, and other relevant agencies investigate the offers for forgery, and abuse of office.
The report revealed that there was no formal public participation by the devolved unit to get public views on the programme and that it did not comply with the Public Finance Management Act, hence funds meant for the scholarship were not classified as public money, and it was instead a community engagement based on mutual trust.
The county assembly wants the county attorney to step aside pending investigations for professional negligence.
“The county attorney failed to advise the county government in his capacity as the principal legal advisor about the programme and its consequences,” the report states.
The assembly also wants the Advocates’ Complaints Commission to investigate Mr Stephen Lel and recommend appropriate action taken against him.
The committee is also demanding a forensic financial audit of the Uasin Gishu Education Overseas Trust Account at the KCB Eldoret East branch, and that county employees mentioned as beneficiaries of the transactions from the account be suspended pending investigations.
According to bank statements tabled before the committee, several individuals, including senior county officials are among the irregular beneficiaries of funds meant for the students.
“The County Executive to engage the services of an independent and reputable external forensic auditor to audit the account and report back to the county assembly within 30 days. The forensic auditor’s term of reference shall be to analyse the financial data to look for evidence of the crime,” said the report.
The CEO of Maxglobal Group, Mr Cornelius Kiplagat, whose firm acted as a link between the University of Tampere and the Uasin Gishu County Government under the programme, is required to refund Sh267,599.50 he received from the overseas account, following the MCAs’ investigation.
Although Mr Kiplagat told the committee that he was promised Sh500,000 as a token of appreciation by Mr Mandago, it was established that Maxglobal was paid 267,599.50 via a cheque no.297 dated July 5, 2022, from the Uasin Gishu Overseas Trust Account.
“The CEO of Maxglobal group to refund the money paid to him out of the overseas education trust and any other money received as a token. The monies be deposited in the same account because it is parents’ money,” stated the report.
The committee further wants KCB to investigate and take necessary action against its staff for professional negligence, by allowing the Uasin Gishu Overseas Education Trust Account to be opened without conducting due diligence.
The report reveals that some trustees heavily benefited financially from withdrawals from the account, although they were not entitled to a monetary benefit.
The committee asked the county administration to suspend any new applications being received by the Department of Education for overseas programmes and continue to facilitate students who have already paid fees and other incidentals to travel to Finland to complete the process.
“Students who paid fees and wish to be refunded, be refunded immediately without unnecessary delays. The programme should also be domiciled in the County Government of Uasin Gishu after appropriate policies and laws have been enacted to guide the programme,” recommended the committee.
It further wants any commitments by the devolved unit and foreign countries on similar programmes put on hold until proper policies and guidelines are put in place.
“The County Assembly is aware that the County Executive has similar engagement with other countries like Canada. We advise that those engagements be suspended until proper policy framework is established,” the report states.
Uasin Gishu Governor Jonathan Bii held talks with officials from Tampere City University late last year with the aim of resolving the matter to facilitate smooth learning of the students.
He admitted that there were a ‘few’ managerial issues, which the county assembly committee would resolve.
“My administration is providing more transparency by entering into a Memorandum of Understanding (MoU) with parents and also ensuring parents are trustee members in education trust so that they have more say in the management of the programme,” said the governor.
Deputy Mayor of Tampere City Pekka Salmi exuded confidence that the challenges can be resolved to facilitate cooperation between the two parties.
“This programme is a win-win for both Uasin Gishu county and Finland. The students are entrepreneurial and in high demand by most employers,” said Mr Salmi.
Dr Caritas Prokui, representing Tampere University, said Finnish universities and colleges are eager to fix teething problems and ensure the sustainability of the programme.
“We want to continue this programme and have more students in Finland. There are many opportunities they will be getting for our mutual benefit,” said Ms Prokui.
Some interviewed parents said they were willing to pay fees directly to the university, however, in the agreement, the Uasin Gishu County was to pay the fees since there was no direct contract with the parents.
They want the arrangement reviewed so that they are issued with accounts by respective universities to pay the fees directly to facilitate the smooth learning of their children.
