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Kenya: KPA Officials Face Graft Charges Over Sh137m Bottled Water Bill

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The Kenya Ports Authority spent Sh137 million on bottled office water without following procurement procedures, attracting the attention of the Ethics and Anti-Corruption Commission (EACC) officers who want directors of six firms involved in the scam charged in court.

EACC has completed investigations into the alleged irregular and fraudulent payments and forwarded the report to the Director of Public Prosecution (DPP) for action.

“On 7th September 2021, a report was compiled and forwarded to the DPP with recommendations to charge officials of KPA, Mombasa fresh water supply Company, Pincho Traders, Smech Enterprises, Nyavu Traders, Aquisana Limited and all their Directors,” reads the EACC 3rd Quarterly Report Covering the Period from 1st July, 2021 to 30th September this year.

The EACC says that the inquiry proved the allegations of irregular and fraudulent payments made by KPA to the six firms in the 20I7/20I8 Financial Year, leading to a loss of Sh137.6 million.

The Commission initiated investigations following a complaint received on 19th September, 2018 indicating that during the financial year, KPA had unlawfully procured fresh water from six firms without following the procurement procedures.

Further investigations established that some of the suppliers were paid for goods not delivered.

Fraudulent payments

On 7th September 2021, a report was compiled and forwarded to the DPP with recommendations to charge KPA officials and directors of the six companies with different counts.

Some of the offences EACC has recommended include six counts of deceiving principal contrary to section 41(2), 12 counts of abuse of office and 10 counts of willful failure to comply with the applicable law, regulations and guidelines relating to procurement.

The directors and officials also face four counts of fraudulent acquisition of public property and one count of willful failure to perform official duty.

The EACC report is dated November 23 2021 and signed by Archbishop Eliud Wabukala and CEO Twalib Mbarak. It was gazette on December 3rd.

The Commission also approved the prosecution of M/S Alootek System Limited for inflating the cost of two Copco compressors it procured on behalf of KPA, leading to the loss of Sh8.4 million.

EACC faults KPA in respect to the award of tender for the supply and maintenance of two Copco Compressors to Alootek Systems Limited at a cost of Sh8.4 million, which was beyond the allocated Sh8 million budget.