By PATRICK MAYOYO pmayoyo@ke.nationmedia.com ( email the author)
Posted Monday, February 25 2013 at 20:40
Posted Monday, February 25 2013 at 20:40
In Summary
- Billions of shillings of taxpayers’ cash has been lost through numerous corruption scandals
Although presidential candidates on Monday detailed how they are going to improve the economy if elected, one thing they did not address adequately was corruption which has resulted in the loss of billions of shillings since independence.
Some of the multi-billion-shilling scams to hit the country include Anglo-Leasing, Goldenberg, Ken Ren Chemical and Fertiliser Company, maize scandal, NHIF medical scheme for civil servants, embassy scandals, and the Nairobi City Council cemetery land scandal, among others.
The country has continued to experience one scandal after the other due to lack of stringent measures in the procurement sector where most of them are reported.
Kenya is suspected to have lost more than Sh100 billion through the Goldenberg foreign exchange scheme and Anglo-Leasing security contracts scandals.
The Anglo-Leasing scandal dates back to 2002 when the Kenyan government sought to get new generation passports with advanced security features.
Kenya Navy’s newest Sh4.6 billion warship christened KSN (Kenya Navy Ship) Jasiri is one of the controversial projects of the Anglo-Leasing scandal.
The Department of Defence signed a deal with Euromarine on July 15, 2003 to build the ship at a Spanish shipyard, Astilleros Gondan.
Payments for the contract were stopped in June 2005 after the former Ethics and Governance PS John Githongo blew the whistle on the suspicious financing deals.
The supplier then sued the government for withholding payments for the vessel which was dubbed “Kenya’s Spanish Armada” by former British High Commissioner Edward Clay.
But the government resumed negotiations in September 2006 after the parliamentary Committee on Defence and Foreign Relations gave the contract a clean bill of health.
According to a report of the commission into the Goldenberg scandal, more than Sh158.3 billion was transacted through several companies in the foreign currency scam.
Goldenberg International, associated with controversial businessman Kamlesh Pattni, is said to have received Sh35. 3 billion. The matter is currently pending before court.
Another major scandal to be exposed is the Ken Ren Chemical and Fertiliser Company. Billions of shillings were paid by the government to those behind the project, which never took off.
There is also the Sh90 billion worth of claims lodged in respect of pending bills for development vote works which are “not payable”.
Last year, another scandal hit the National Hospital Insurance Fund involving Sh1.2 billion meant for insurance cover for civil servants.
At least five government agencies, including the Ethics and Anti-Corruption Commission and Criminal Investigations Department, have been conducting investigations into the scam, but they are yet to make their findings public.
At the Foreign Affairs ministry, investigations into the expenditure of Sh1.1 billion in the purchase of embassy land in Japan are yet to be concluded.
At the Ministry of Local Government, investigations are still ongoing into the Sh283 million City Hall cemetery scandal where the taxpayer lost money in land judged to be useless for graves.
At the Education ministry, Sh103 million was lost through fraudulent imprests.
At least 10 officers have been charged in court following investigations by the anti-graft watchdog.
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