Senate Committee Calls on EACC and DCI to Take Stern Action Against Rogue Kwale Officers

Kwale Chief Finance Officer Alex Thomas Onduko who is being grilled by senate committee over suspected dubious tender deals could be in for trouble after reports leaked that an oversight committee wants investigative agencies to take serious action against him.

Mr. Onduko appeared before the senate Parliamentary oversight committee to answer to various audit queries revolving around Multi-million tender deals at the county.

The officer who appeared together with other officers was pinned to respond to serious allegations of financial missapropration and audit queries raised by both the Auditor General and the Controller of Budget.

CONTROLLER OF BUDGET
The county was to respond to queries revolving around operation of 63 accounts with commercial banks and procurement deals running estimated to be worth millions of shillings.

The Controller of Budget Margaret Nyakang’o had in April 2024 raised serious concerns on the county’s use of the 63 different bank accounts, which were deemed illegal and contravening Regulations 82(1)(b) of the PFM (County Governments) Regulations.

The regulations 2015, requires that any county government bank accounts be opened and maintained at the Central Bank of Kenya.

The oversight committee also raised queries on the revenue status and suspected diversion of daily collections.

Onduko was at pain and visibly struggled to explain the county’s pending bills which stood at Kshs.173.12 million as of 31st March 2024, and this is expected to have grown to over Ksh 200 million by end of 2024.

In the first nine months of the 2023/25 FY,the Controller of Budget approved withdrawals of Kshs.5.59 billion from the CRF account during the reporting period, which comprised Kshs.1.11 million (19.9 per cent) for development programmes and Kshs.4.48 billion (80.1 per cent) for recurrent programmes. Analysis of the recurrent exchequers released in the first nine months of FY 2023/24 indicated that Kshs.2.55 billion was released towards Employee Compensation and Kshs.1.93 billion for Operations and Maintenance expenditure.

The available cash balance in the County Revenue Fund Account at the end of the frst nine months of FY 2023/24 was Kshs.1.20 billion.

The total amount spent during this period was greater than the amount released by the COB. The county had explained that this was due to invoices that had been validated in the system but not yet paid due to the delay in the disbursement of funds by the National Treasury.

However, a follow on the invoices detected possible fraud which some of the MCAs at the county assembly want probed.

The CoB also put the finance department on the spot over payment of Ksh 67,794,770 for the construction of KSh600 million fruit processing plant in Kubo South ward.This was for the phase one works whose budget was Ksh 8,089,590 million.

ILLEGAL PAYMENTS
This comes a fortnight after it emerged that anti-corruption detectives are following up on suspected illegal payments made to a Kwale County Executive Committee Member (CECM) who was paid Ksh 150,610,711 million through companies run by close associates and family members.

The Social Service and Talent Management CECM Francisca Kilonzo is believed to have benefited from millions of fraudulent payments in total disregard to the Public Procurement and Asset Disposal Act of 2015.

An oversight committee at the Kwale County Assembly had found out that companies used to siphon funds from the county coffers are directly linked to the CECM.

The companies are Diani Occasions, which has banked Ksh 33,70,00 million, Mutanga Investments that has been paid Ksh 266,644,200 million and R Flink which banked Ksh 90,296,011 million.

Mutanga Investments for instance is run by directors who are well known to the CECM. They are Mr. Peter Njagi, Catherine Sonia Wairimu Mahan, Abraham Vinner, Yvonne Murugi Mimano, Rose Mumbi Minamo, Charlotte Wamuyu Mimano and Ian Mbuthia Mimano.

Another company is also linked to the CECM and the third one is R FLINK which has also been paid Ksh 90,29,011 million for unverified works in the department.It is owned by Kilonzo’s sister Fatuma Kilonzo.

Diani Occasions was paid Ksh 33,670,500 under unclear circumstances. It is owned by her late nephew Muema Christopher Kilonzo who is still listed as the proprietor.

TENDERS
Also under probe by the senate is award of tender to Cloemart Company which won the tender for construction of an oxygen plant at Msambweni Hospital during the 2021/2022 Finance Year for a budget of Ksh 16,000,000. The Company was also awarded the contract for construction of Kilolapwa Laboratory where millions went to waste.

Cloemart is also linked to Onduko and is run by a close person to him who is identified as Chloe Kalamesi.

EACC officials have previously apprehended several senior officials who have been on the corruption radar trail.

They include Masoud Shughuli, Chief Officer Roads, Public Works Salim Nzimbu, Water Executive Committee Member Hamedi Mwabudzo and the Finance Executive Committee Member.

Mr Onduko has attracted alot of public attention after several reports linked him to ownership of properties worth millions of shillings.

IFMIS
A comprehensive report exclusively obtained from the Integrated Financial Management Information System (IFMIS) indicates that several companies iwere paid huge amount of money without proper documentation in favor of a few individuals.

It has also been established that several county officials from the finance department, health and procurement are being sort by investigative agencies over corruption allegations.

EACC
Meanwhile there have been reports that some Kwake County Officials have been extorted huge sums of money by imposter EACC officials.

The EACC on Tuesday said that rogue and imposter EACC officials have managed to successfully extort school principals, parastatal heads, county officials and other government officers who have been willing to part with money in fear of facing arrests.

However, the EACC has stated that it could use this to trail corruption considering that some county and national government officers have been willing to bribe the imposter EACC officials.