Nairobi-Kenya (May 27, 2011) – The British government has announced a crackdown on corrupt Kenyans who looted their country and stashed the money in offshore accounts of hitherto safe havens like Isle of Man and New Jersey.British High Commissioner to Kenya Rob Macaire says his government will institute proceedings to seize the stolen money and return it to Kenya. The same will apply to real estate properties in Britain bought with proceeds from organized crimes such as money laundering, drugs and human trafficking. He called on Kenyan authorities to provide information on individuals, who had looted national coffers or received bribes from international firms in exchange for public procurement contracts and tenders and banked the proceeds offshore, in order to activate action against them.
The High Commissioners disclosure comes on the heels of warrants of arrest issued for Kenya’s former Finance Minister Chris Okemo and former energy mogul Samuel Gichuru, over millions of dollars in bribes that were wired to their accounts in New Jersey by foreign firms to win multi-million-dollar energy contracts in Kenya.
The two are the first Kenyans to be sought by a foreign court to face charges of corruption, which is the undeclared religion in Kenya that costs the economy upwards of $20 billion annually. Six other Kenyans have appeared before the International Criminal Court in The Hague to answer charges of crimes against humanity committed during 2007-2008 post-election violence.
The bribery payments were made to the two Moi-era millionaires between 1999 and 2002 amounting to $3.2 million, £4.4 million and 786,000 Danish Kronner. The money was paid during a period when Kenya was liberalizing the energy sector and awarding lucrative contracts to so-called independent power generators to supplement the hitherto monopolistic Kenya Power and Lighting Company (KPLC). The two must now sleep on the beds they literally made in New Jersey. Going by Macaire announcement, many other Kenyans may join them in the near future.
Gichuru successfully blocked prosecution in Kenya based on a forensic audit report exposing massive corruption within the KPLC. He went to court where judicial officials were reportedly paid a handsome seven-figure sum to block the implementation of the report. The report revealed losses running into millions of dollars that were recklessly incurred by KPLC and millions more squandered to purchase obsolete equipment at inflated prices under Gichuru’s watch. Kenyans continue to pay bloated electricity bills to refund foreign loans supposed to have financed the energy sector. Many foreign investors have closed shop due to the high-energy costs.
The British envoy confirmed the arrest of the proprietor of Triton Petroleum Ltd Yagnesh Devani and proceedings to extradite him to face justice in Kenya had commenced. Devani fled Kenya in 2009 following a $100 million Triton Oil scandal. Triton was allowed by Kenya Pipeline Company (KPC) to collect oil valued at $100 million and sell it without permission from the financiers who paid for its importation. The government sought the help of Interpol to track him down.
Top officials at the Ministry of Energy, in whose docket the oil sector falls, washed their hands from blame. Energy Permanent Secretary Patrick Nyoike says he was kept in the dark over illegal dealings between KPC and Triton Company. He has nonetheless vowed to resign if implicated in the scandal. Energy Minister Kiraitu Murungi has consistently denied any wrongdoing. However, as Minister for Energy, Kiraitu is responsible for overall energy policy, and should morally accept political responsibility for the failures at KPC. KPC as a parastatal also falls under his docket.
Murungi claims that officials of the KPC conspiring with Devani perpetrated the swindle. He has been at pains to explain the steps he took to ensure that those involved in the scam were held accountable and steps taken to forestall such occurrences in future including: ordering a full forensic audit by PriceWaterhouseCoopers; a probe by Kenya Anti-Corruption Commission and suspending the KPC Chairman and Managing Director.
Among the Triton financiers were the Kenya Commercial Bank (KCB), owed $25 million, Glencore $28.75 million, Fortis of France $11.3 million and Emirates National Oil Company $31.25 million. The company owes other service providers $3.7 million. Kenya taxpayers risk losing over $100 million, most of it in foreign loans, as a result of the Triton scandal since the KPC breached an agreement with financiers stipulating that financed stocks would only be released on the financiers’ authority. Fifty witnesses have been lined up to testify in the multi-million-dollar criminal case involving Triton Petroleum Company.
Triton aside, a number of overnight Moi era billionaires are facing sleepless nights as the heat on corruption intensifies. Some individuals, who cannot produce a pay slip from any employer or credentials of professional services they rendered, or indeed, a corporate portfolio of a company they ever managed in their life, own multi-million-dollar properties in European capitals and Asian countries. They also have fat accounts in Swiss banks among other safe havens. Among them is a former prison warder turned former President Daniel arap Moi personal assistant, Joshua Kulei, who owns a residential home in London.
As the international banking, reforms take shape and transparency on transactions widens internationally, exposure of looted fortunes is just a matter of time and ill-gotten wealth will no longer be kept secret. The noose is slowly but surely tightening around the necks of the hitherto untouchable tycoons, who protected their public image by bribing the media, judicial systems and investigative agencies.
Posted by Blamuel Njururi Published on May 27 2011 You can follow any responses to this entry through the RSS 2.0.All email addresses will be validated prior to approval of comment.
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