Trade Cabinet Secretary Salim Mvurya. Inset is Ms Lucy Anangwe, who was appointed managing director of the Kenya National Trading Corporation (KNTC).
Trade Cabinet Secretary Salim Mvurya is in hot water for allegedly influencing the appointment of an official implicated in the Sh6.5 billion edible oil scandal to a plum post.
Ms Lucy Anangwe was appointed managing director of the Kenya National Trading Corporation (KNTC) despite being implicated in the procurement scandal, which is the subject of ongoing investigations by state authorities.
Ms Anangwe was the General Manager in charge of Strategy, Risk and Compliance at KNTC, a parastatal, and her promotion, according to documents in the Nation's possession, comes despite advice from the Chairman of the KNTC Board, Mr Hussein Debasso.
EACC, DCI probes
Mr Debasso's advice to Mr Mvurya, dated November 6, 2024, was based on ongoing investigations by the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI), as well as an adverse report in a special audit conducted by Auditor-General Nancy Gathungu.
Mr Mvurya was also briefed on the ongoing Senate investigation into Marsabit Senator Mohamed Chute following a request for his testimony.
Senator Chute blew the whistle in the Senate, alleging that Ms Anangwe was among those implicated in the edible oil scandal but is being protected for promotion to thwart the ongoing investigations.
The senator's move came as he questioned why her former colleagues at KNTC, with whom she was involved, had been sent home but she had not.
Documents show that on November 5, 2024, CS Mvurya wrote to Mr Debasso recommending the appointment of Ms Anangwe as KNTC managing director to replace Ms Pamela Mutua, who was sacked and charged in court over the edible oil scandal.
A day later, Mr Debasso responded to CS Mvurya, informing him of an internal disciplinary case against Ms Anangwe, which had already been recommended by the board and was underway.
Mentioned adversely by Auditor-General
Mr Debasso also informed Mr Mvurya that Ms Anangwe had been mentioned adversely by Auditor-General Nancy Gathungu in a special audit on the importation of edible oil dated July 29, 2024, and that the matter was also in the hands of the EACC, the DCI and the Senate.
The special audit recommended the investigation and recovery of the Sh10.72 million irregularly paid to staff, which was disguised as handling fees at the time Ms Anangwe was the head of finance and accounts manager at KNTC.
“Please note that the officer was involved in the execution of the irregular bank payments since she was signatory to the bank accounts,” Mr Debasso told Mr Mvurya.
“I write to seek guidance on whether to proceed and issue the appointment letter or to conclude the ongoing disciplinary process of which the board will present a detailed report on its findings and recommendations.”
However, on the same day that the board chairperson wrote the advice, Mr Mvurya dispatched Trade Principal Secretary Mr Alfred K'Ombudo to KNTC premises to expedite Ms Anangwe's appointment.
Personal visit by PS
Some KNTC board members, who did not want their identities revealed, said that PS K'Ombudo "personally" visited KNTC's premises in Nairobi's industrial area "and hurriedly called an urgent board meeting ostensibly to have Ms Anangwe installed as KNTC managing director".
“The November 6, 2024 notice to all members of the board calling for a special board meeting to install Ms Anangwe as the MD was quickly circulated, at 4pm on the day the PS visited the premises, by the Company Secretary Leackey Illa,” one said.
“Notice is hereby given that a special board of directors meeting shall be held on Wednesday November 6, 2024 at 4pm by both physical and tele/video conferencing means as per the guidelines on the conduct of board business,” read the notice signed by Mr Illa and copied to Inspector-General, State Corporations.
Mr Illa listed five items on the agenda for the day.
These included a quorum, adoption of the agenda for the meeting, attendance including receipt of apologies if any, disclosure of interest -- to declare any conflict of interest by directors in any matter before the board for deliberation.
The last item on the agenda to be discussed by the board was the introduction of the newly appointed managing director "to the board and to conduct or transact incidental business related to the said appointment".
“What is intriguing is that the board chairman was not involved in the hurried arrangement to install Ms Anangwe,” a board member said in confidence.
The board member continued, “This begs the question as to the PS’ legitimacy to call a board meeting of a Semi-Autonomous Government Agency (Saga) at an hour’s notice without the board chairman’s involvement.”
PS K'Ombudo went on to complete the task of installing Ms Anangwe as head of KNTC even before the EACC, DCI and Senate investigations were completed, and by the evening of the same day a memo was circulated to all staff announcing her appointment as MD.
“We wish to inform you that the CS Ministry of Investments, Trade and Industry has appointed Ms Lucy Mugadukha Anangwe as the Managing Director, KNTC, effective November 6, 2024,” read a memo from Ms Maureen Dwallo, KNTC acting General Manager Corporate Services, dated November 6, 2024.
“This memo is therefore to congratulate our new Managing Director and request you to accord her full support and corporation (sic) during this transition,” added Ms Dwallo.
She added that all staff members at the KNTC headquarters “are advised to assemble in the boardroom at 8am without fail.”
CS Mvurya did not respond to our multiple inquiries sent to his phone number.
The PS and Ms Anangwe also failed to respond to our requests.
Among the issues we wanted the CS to clarify were whether he was aware of PS K'Ombudo's visit to the KNTC premises and whether he was aware of Mr Debasso's advice on Ms Anangwe's suitability.
Another question was whether Ms Anangwe's appointment was rushed, whether it was a plot to cover up the ongoing investigations, whether the chairman of KNTC was involved in the appointment and whether she was the only person interviewed for the job.
Nevertheless, Ms Anangwe's "hurried" appointment came as Mr Mvurya and KNTC board chairperson Debasso were summoned by the Senate over the questionable importation of edible oils and their involvement in the sale of the imported commodities, as well as the internal disciplinary process that the board had recommended for them.
Internal disciplinary proceedings
It remains unclear how the committee will deal with Ms Anangwe, given that it must conclude its internal disciplinary proceedings against her and submit a detailed report of findings and recommendations to Mr Mvurya for action.
The board's findings could also be crucial to the EACC's ongoing investigations.
In his letter to Mr Mvurya, Mr Debasso informed him that the board had shortlisted and interviewed Ms Anangwe on October 30, 2024 while investigations into the edible oil scandal "where Sh6 billion was lost to corruption" were ongoing.
Mr Debasso says the KNTC board was slow to act after the revelations of the Auditor-General's special audit.
The KNTC board chairman also told the CS that several senior officials have been dismissed and others are still being investigated by the board's ad hoc disciplinary committee and the ongoing Senate investigations.
On November 1, 2024, Senator Chute asked the EACC and the DCI to fast-track investigations into the importation of cooking oil by KNTC and the irregular withdrawal of cash by KNTC staff while "Ms Anangwe was the Finance and Accounts manager".
The senator also wants staff implicated in the scandal, including Ms Anangwe, to step aside while investigations continue, even as he questioned why she was retained at KNTC while others were sent home.
“I am reliably informed of the ongoing tampering with evidence and process in this investigation. This is improper and continues to raise eyebrows on the retention of staff involved in the fraudulent loss of Sh6.5 billion at the KNTC,” Senator Chute said in his request for a statement in the House.
The Marsabit senator wants the Justice, Legal Affairs and Human Rights Committee of the Senate to investigate why staff members -- Ms Anangwe, Mr Edward Wachira (senior accountant) and Ms Lydia Karue (finance officer) -- who may have been involved in the scandal, are still in office.
“It is fundamentally important that the committee directs the members of staff mentioned to step aside to allow investigations to be done,” said Senator Chute.
Senator Chute wants Mr Debasso to provide a report on the findings of the involvement of KNTC staff in improprieties relating to the importation of cooking oil and to explain the action taken against them.
The minutes of the board meetings relating to the implicated officials are also requested.
The committee will also seek answers from Mr Debasso on the role of Environpro Kenya Limited in the importation of cooking oil.
The Chairman of KNTC has been asked to produce the agreement between KNTC and Environpro Kenya Limited and three other companies that had the largest consignment.
The committee wants evidence of any exemptions granted to Environpro Kenya by the Kenya Revenue Authority (KRA), as well as evidence of payments made by KNTC to the company and the collection of the imported consignment.
KNTC was also asked to provide the contact details of the other companies that signed the agreement.
