Exclusive, Investigations into Alleged Money Laundering Rock Nairobi County Government
Heads are poised to roll at City Hall’s procurement and finance departments as investigations heat up over alleged money laundering and fraudulent payments.
The Director of Criminal Investigations (DCI) has initiated inquiries into these serious allegations, which have sent shockwaves through the Nairobi County Government.
The developments unfolded just one week after former County Executive Member for Education, Janet Ouko, called for immediate action. Ouko, through her legal representatives at Nasimiyu and Company Advocates, penned a letter to DCI’s Mr. David K. Birech on September 19, 2023. In the letter, she demanded swift action regarding File No. 66/2023, which pertains to suspected fraud in Nairobi County payments.
The urgency of the situation became even more apparent when Mr. Birech issued a stern letter to the County Secretary, Acting Patrick Analo, demanding procurement documents and the names of implicated officers. The letter, dated July 21, 2023 (Ref. DCI/IB/SEC/4/4/16b/VOL.XIV/45), is titled “Re: FIU Inquiry File No.66/23 Suspected fraud in Nairobi County Government.”
The investigation centers around a group of companies that are alleged to have received payments from the Nairobi County Government without rendering any services. The entities under scrutiny include Larsen Investment Company, Bushara General Supplies Ltd., Tweem Ltd., Future Link Limited, Cloud Mobile Technologies Ltd., AR Pharmaceuticals Ltd., Istanbul Investment Ltd., Ramecon Engineering Ltd., and Brigit West Ltd.
The DCI’s office explicitly stated, “This office is investigating a case of money laundering whereby the Nairobi County Government is alleged to have fraudulently made payments to the companies mentioned above where no services were rendered.”
To aid in the investigation, the DCI has requested a range of procurement documents from the County Secretary’s office. These documents include budget approvals for items supplied by the nine companies, requisitions by the user department related to these companies, and tender documents. These tender documents encompass invitations, preparations, submissions, opening, evaluation, and records of tender committee meetings.
Furthermore, the DCI is seeking records related to the awarding of tender contracts, contract preparations, details of deliveries made, inspection reports, documentation of goods receipts, acceptance committee reports, and store inventory.
The investigative team has also requested access to all records of Local Purchase Orders (LPOs) issued to the nine named companies. Additionally, they are seeking payment vouchers with attachments pertaining to the nine companies under investigation.
In a final request, the DCI is urging the County Secretary’s office to assign officers with knowledge of the various processes outlined above to cooperate with the investigation, provide information on their roles, and record statements accordingly