For at least six years, the National Museums of Kenya (NMK) paid Sh491.4 million in salaries to 105 individuals that did not work at the agency.
This baffling ghost workers scheme is among 22 investigation files filling up the public prosecutions in-tray, as the Ethics and Anti-Corruption Commission (EACC) seeks to have over 50 people charged with graft-related offences that cost taxpayers Sh20 billion.
From alleged bribery and mismanagement of government-funded projects to paying millions to ghost workers, several individuals in the public and private sectors stare at long jail terms and multimillion-shilling refunds, if prosecutors approve charges and secure convictions.
Kakamega governor Fernandes Barasa, former Kisii deputy governor Joash Maangi, former governors Charity Ngilu (Kitui) and Ferdinand Waititu (Kiambu), former National Museums of Kenya Director-General Mzalendo Kibunja and former National Housing Corporation managing director James Wagema Ruitha headline the long list.
The national museum ghost workers were rigged into the system using identities of real people to inflate the NMK payroll. The scheme was so well planned the ghost workers were also earning pension. Most of the salaries paid would be channelled to some senior officials at the NMK.
Jackson Kinoti Gaichu, Peter Muthengi Mwabu, Edward Kiarie Njiru, Beatrice Mbula Kituu, Henry Jillo Kawimbi and Anthony Asige Mugomati are some of the individuals whose accounts would receive monthly salaries ranging from Sh88,000 to Sh95,000, despite never having to step into any NMK premises to work.
They were also asked to apply for loans at a specific KCB branch where they had opened accounts for the salaries. Each successful loan application would come with a token ranging from Sh100,000 to Sh200,000.
By the time EACC detectives latched onto the massive fraud last year, taxpayers had lost Sh491.4 million. On May 5, 2023, the EACC forwarded a complete investigation file to the Office of the Director of Public Prosecutions (ODPP), listing the suspected masterminds and senior NMK officials who should be ordered to refund taxpayers’ money.
The EACC wants Mr Kibunja, human resources boss Stanvas Ongalo and two payroll officers – Oliver Rabuor and Wycliffe Ongata – to be charged with fraud. It also wants to recover the Sh491.4 million, with interest, from the four individuals, who were the most critical NMK officers.
Two firms – Galmalink Ltd and Florab Technical Services Ltd – may have been used to launder the illicit funds from the NMK.
Ghosts of the Lake Turkana wind power plant in Marsabit County have come back to haunt Mr Barasa, for allegedly costing taxpayers Sh18 billion in penalties charged by the electricity generation project developer.
The project was conceptualised by a consortium dubbed Lake Turkana Wind Power (LTWP). A wind farm was set up on land nearly the size of Nairobi. LTWP was to put up the wind farm, while the government was to build an electricity transmission line starting at the wind farm in Loiyangalani, Marsabit County, and terminating at a power substation in Suswa, Narok County.
Mr Barasa was managing director of the Kenya Electricity Transmission Company (Ketraco), which was tasked with building the power line.
The line was initially to be constructed over 24 months starting in 2011. But several delays saw construction end in 2018 – 21 months after LTWP had completed its power plant and was generating electricity.
Kenya had agreed to purchase electricity that would be generated and not used in the event that construction of the line would delay. Eventually, Kenyans had to cough up Sh18.5 billion for electricity LTWP produced but couldn’t be used on account of the incomplete transmission line.
EACC detectives now hold that the project delays and subsequent penalties to taxpayers were a result of corrupt deals aimed at lining the pockets of some individuals.
“Further investigations revealed that public officers were involved in contractual fraud and money laundering,” an EACC report on investigations completed between April and June states.
Part of the project delay was occasioned by the bankruptcy of Spanish contractor Isolux Ingenieria, which was initially hired to construct the Loiyangalani-Suswa transmission line.
Mr Barasa could be charged alongside 17 other individuals and companies, including Nari Group – a consortium of Chinese contractors who eventually completed construction of the transmission line after Isolux Ingenieria went bankrupt.
The governor resigned from Ketraco in February, 2022, hours before he was to face a parliamentary committee that was probing the Lake Turkana wind power project debacle.
His predecessor, Joel Kiilu, has also been recommended for prosecution.
Kenya paid €46 million (Sh7.2 billion) to LTWP before reaching a deal to see the €81.5 million (Sh12.8 billion) balance raised from electricity bills charged to all users. This meant hiking electricity prices, and will continue until May 2024.
The EACC also wants former Energy PS Patrick Nyoike charged. It has also cited Ketraco officials Anthony Wamukota, Peter Njehia and Carol Kiara. Others are Luanda Concrete & Earth Movers Ltd and its officials George Ilala Indakwa, Chrispinus Wamukota and Patrick Simiyu Wasike; Aliceson Investments Ltd and its director Alice Nafula George; Nari Group and its officials Chen Chao, Fan Weicheng, Jia Tang and Yang Jia; and Kenwyne Solutions and its director Huang You.
Former National Housing Corporation boss James Wagema Ruitha and Mr Maangi have also been recommended for prosecution over procurement law violations involving the state agency’s Lang’ata phases IV and V projects.
Mr Maangi’s company Lemna International Inc, registered in the US but with a local presence, was awarded a tender for construction of NHC houses in Lang’ata. But alleged collusion saw the parties irregularly change aspects of the deal, which saw Lemna overpaid by more than Sh1 billion, the EACC holds.
The investigation was sparked by a complaint that the NHC had made double payments of Sh100 million to Lemna. The file was forwarded to the ODPP in June but is still awaiting a response.
For Mr Waititu, the courts have nearly been a second home owing to other graft-related charges. The EACC intends to charge him, his wife and daughter with conflict of interest, abuse of office and unlawful acquisition of public property, all in 2017/2018.
In Kitui, Ms Ngilu allegedly hired three people and unlawfully appointed them to her Manifesto Implementation Unit during the 2017/2018 financial year.
The hiring was done by the County Public Service Board, allegedly under her instructions.
