KEPSA condemns NYS, NCPB scandals, demands firm action on perpetrators

Dozens of lorries queuing with maize at the NCPB depot in Eldoret on April 19, 2018. /MATHEWS NDANYI
Dozens of lorries queuing with maize at the NCPB depot in Eldoret on April 19, 2018. /MATHEWS NDANYI

The Kenya Private Sector Alliance has called for firm action against individuals involved in Kenya’s newest scandals at NYS and National Cereals and Produce Board.

Chief executive Carole Kariuki said the government should demonstrate unquestionable political will and commitment in the crackdown on the perpetrators of the crime.

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She said the media has done its part by highlighting the scandals and that the ball was now in the hands of the government to act on the information.

"This is the one chance to turn the tide on corruption and begin to win this bewildering and seemingly endless war," Kariuki said in a statement on Friday.

She said that the private sector is ready to remain transparent on the issue and that it is committed to remaining firm in the fight against corruption.

"We note, for example, that none of the companies and individuals named so far are members of KEPSA. We also note that the money lost could have been channelled through banks which are our members and we are committed to helping establish the officials in these banks facilitating the vice," she said.

It is alleged that about Sh9 billion shillings were stolen at the National Youth Service through payouts to fictitious companies for goods that were never delivered.

Public Service PS Lilian Mbogo Omollo, who has since stepped aside, has since refuted the claims before the Parliamentary Accounts Committee.

The Principal Secretary told the committee on Friday that the Auditor General’s report cleared the agency of any financial misappropriation during the 2016/2017 financial period when the scandal reportedly took place.

Some 40 officials at the NYS have recorded statements with the Directorate of Criminal Investigations.

Reports say arrests could start by next week after the Director of Public Prosecutions Noordin Haji and DCI George Kinoti finish scrutinising the statements.

In the case of NCPB, unscrupulous traders are said to have pocketed millions of shillings from the entity by disguising themselves as farmers.

An audit report by the Ministry of Agriculture revealed on Thursday that the payout benefited

18 traders at the expense of thousands of genuine farmers who are yet to be paid Sh5 billion for their maize.

The said deliveries by the traders, which run into hundreds of thousands of bags, also meant that some genuine farmers were locked out and could not deliver their maize for lack of storage space at NCPB depots.

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Agriculture PS Richard Lesiyiampe suspended eight senior managers

at the NCPB and place

59 staff working in the five critical silos where malpractices were reported under investigation.

This happened a day after NCPB CEO Newton Terer resigned on May 20.

More on NCPB:

Kariuki noted that the two scandals have the potential of scuttling the ambitious "Big Four" agenda which had begun taking shape with some impressive steps having already been made.

"It is proof that there is still more work to be done and that perhaps there exists a Big One that needs to be tackled with every available weapon even as we work towards the Big Four," Kariuki said.

She said the government needs to move away from PR stunts for the sake of showing that it was doing something and actually go for the culprits and bring them to book.

Kariuki said Kenyans expect conclusive and thorough investigations to be conducted including carrying out lifestyle audits by committed agencies on those mentioned.

"There needs to be a ‘business unusual’ approach, and this goes beyond the usual ransacking of homes, dawn raids and the carting away of files. The public expects to see Government officials in positions of power, influence, and most importantly accountability, convicted and made to pay for the plunder."

She warned members of KEPSA that they should not expect the association to stand in solidarity with them should investigations implicate them in the fraud.

"In this spirit, KEPSA will work with its members and Government to advocate for a stronger and more effective anti-corruption environment."

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