Spouses of public officials could be barred from State tenders

Former Kiambu governor Ferdinand Waititu and his wife Susan Wangari are alleged to have received Sh7 million while having reason to believe the cash was acquired from Kiambu County Government through corrupt conduct.

Migori governor Okoth Obado, his four children and seven other suspects are also facing charges of conspiracy to defraud the county more than Sh300 million.

Tharaka-Nithi Governor Muthomi Njuki and 17 other suspects including his wife Margaret Mugweru are also fighting a Sh34.9 million corruption case.

The BBI report proposes that spouses of a public officer should be left to engage in the private sector to avoid potential conflict of interest.

Ethics law

It directs the full implementation of the Public Officer Ethics Act, the Mwongozo Code, Corporate Governance Regulations under Capital Markets Authority, and the Public Procurement and Asset Disposal Act to enforce this.

“A Public Officer shall not make decisions that affect the financial or other interests of the spouse, child or parent (or even a common-law partner) relating to the public officer’s place of work,” states the report.

It adds: “A Public Officer shall be obliged to submit a written report to the authorized entity about the spouse, child or parent (or even a common-law partner) on any financial or other interest where the public officer works.”

And it spells out stringent measures for government employees to dabble in other business.

“For a Public Officer to engage in business outside their working hours, they shall obtain a written approval from the reporting officer.

“The above approval should document that the work or business is not prohibited by legislation and does not constitute a conflict of interest or infringe the reputation of the public service,” the report states.

Written notification

The report requires that a public officer shall be obliged to submit written notification to the immediate supervisor on any ownership of shares and bonds, or other financial interests, of an entity which is doing business with the agency the officer is working in.

And to expose and break up cartels reported to dominate government tenders, the report recommends “a rigorous intelligence-led review of the hold of cartels in public service.”

It directs that a National Intelligence Service (NIS) process dedicated to smoking out the cartels be established.

“Link it to investigative agencies for evidence to be developed to enable prosecutions,” the report recommends.

And to discourage banks from being used in money laundering, the report recommends that the Central Bank of Kenya (CBK) should withdraw licences and levy heavy penalties for banks and their chief executives engaged in the vice.

“CBK, as the principal regulator of banks and other financial institutions, should ensure that CEOs of banks found to have engaged in corrupt dealings are penalised by paying part or all of the value of assets laundered through their banks. By extension the CBK should withdraw licences from banks that have repeatedly been found to have engaged in corrupt dealings.”

Big data

The report proposes “increased big data analysis on banking transactions to spot suspicious trends and actors.”

In addition to custodial sentences of those found guilty of economic crimes, the report proposes punitive fines with the proceeds being used to assist vulnerable Kenyans.

It tasks the National Council on Administrative Justice and the Judiciary to develop a sentencing policy.