Former Nairobi Governor Evans Odhiambo Kidero will spend his weekend in police custody.
This follows his arrest in connection with a Sh68 million irregular payout to a law firm during his reign as city boss.
Ethics and Anti-Corruption Commission sleuths nabbed Kidero on Friday morning. He was held with others for the better of part the day at EACC police station at Integrity Centre before they were transferred to Kilimani police station.
This is the third time Kidero has been arrested by detectives over graft accusations.
Those arrested with him include his former chief of staff and co-director Cups Limited George Wainaina and former councillor Paul Mutunga Mutungi.
Former mayor John Ndirangu Kariuki is under arrest in a city hospital where he is receiving treatment.
The EACC has asked 13 other suspects who are at large, including Nyakach MP Aduma Joshua Owuor, to present themselves to detectives at Integrity Centre.
The arrests come as the commission tightens its nose on six counties whose officials are believed to have been running similar syndicates to empty county coffers through fictitious claims.
“EACC has been investigating an allegation of irregular payment of Sh68 million made by Nairobi City County to M/S Wachira Mburu and Company advocates purporting that it was legal fees,” Twalib Mbarak, the EACC boss, said in a statement on Friday.
“Investigations established that one Steven Kariuki from the firm of M/S Wachira, Mburu, Mwangi and Company Advocates was given instructions by Aduma Joshua Owuor - former acting director of legal affairs then Nairobi City Council and now MP Nyakach - to act on behalf of NCC in HCC No 875 of 2010 Kyavee Holdings Limited versus City Council of Nairobi without following laid down procedure,” he said.
EACC said their investigations established that Kyavee Holdings, despite being said to have sued, had no legal capacity to sue the Nairobi City Council as it did not exist.
“The property in dispute L.R No. 209/8254 is Mariakani Primary School's playground and the same has never been reallocated and therefore Kyavee Holdings had no claim on the land,” EACC said. The advocate said to have represented Kyavee Holdings Limited did not possess a valid practising certificate at the time when the case was on.
The alleged irregular payment of Sh68 million was done in two instalments of Sh10 million on June 13, 2010, and Sh58 million on January 7, 2014.
“Investigations establishment that no services were rendered to the Nairobi City County Government and the entire amount of Sh68 million was embezzled by several people including Kidero, Wainana, Mutunga, Ndirangu and Hannah Muthoni Kariuki, a spouse to Steven Kariuki,” EACC said.
According to EACC, Hannah received Sh11 million which was deposited in her account.
Hannah and eight accountants of Nairobi City County are still being sought by EACC officers and have been asked to present themselves.
The others are Alice Njeri Mundia, Elizabeth Wanjiru Nderitu, James Mimi Mbugua, Ekaya Alumasi, Peterson Andrew Njiru, Charity Muringo Ndiritu, Ng'ang'a Mungai Ng'ang'a and Philomena Kavinya Nzuki
Others are John Ngari Wainana, a co-director Cups Limited, Manasseh Karanja Kepha acting deputy director internal audit Nairobi City Council and previously department accountant, legal affairs department in the county.
DPP Noordin Haji acknowledged receiving the file from EACC, saying he found sufficient evidence to support criminal charges against Kidero, Wainaina, Aduma Joshua Owuor and former mayor Ndirangu.
He further directed that the suspects be arraigned and prosecuted for conspiracy to commit a corruption offence, abuse of office, unlawful acquisition of public property, dealing with suspect property and money laundering.
The sixteen are expected to be arraigned on Monday.
The anti-graft agency has in recent months shifted focus on county chiefs as it seeks to eliminate plundering in the counties with arrests.
Samburu Governor Moses Lenolkulal was the latest this year to be nabbed. EACC detectives have accused him of involvement in a Sh84 million fraud. He was freed on April 4 on a Sh10 million bail after it was reduced from Sh100 million.
The EACC is identifying assets believed to have been bought using cash stolen from the counties. They include houses, land and high-end cars.
During the just-ended fourth Legislative Summit in Kisumu, EACC director of preventive services Vincent Okong’o said the commission has over the past six years averted a possible loss of Sh21.3 billion through disruption of corruption networks at both the county and national government levels.
He said the commission has secured 111 convictions in various courts since 2013. During the same period, the EACC managed to recover Sh6.5 billion from corrupt individuals.
“Of the 227 cases involving MCAs – some who have left office – we unearthed unethical behaviour like conflict of interest, abuse of office and falsification of documents. Some are doing business with the county governments,” Okong’o said.
He said the EACC has observed that most counties are operating on weak accountability systems which create corruption loopholes. This makes it difficult to combat graft in the counties.
Okong'o said the commission has conducted accountability system analysis in 17 county assemblies. From the analysis, it emerged that most counties do not maintain assets registers and lack of controls and audit of programmes.
There is blatant abuse of procurement systems which in most cases is clouded by conflict of interest by MCAs charged with over sighting governors, he said.
“Many institutions still have very weak accountability systems of use of public funds,” Okong’o said.
He called for an automated declaration of wealth system to aid the fight against corruption especially in the counties. Okong'o said the current manual declaration is too cumbersome for sleuths to analyse all the documents.
The commission has proposed to the National Assembly to come up with a law that will see automation of wealth declaration.
“The current manual system is tiresome since one must obtain a court order and also seek permission of the person to open the sealed forms,” he said.
