City Hall Employees Charged With Sh150Million Asphalt Plant Fraud

L-R Charles Gatheru Mburu , Bernardn Kigori , Allan Muchira , Ephantus Gitonga , Edna Nyaitond and Peter Gitau in the dock at a Milimani Law court where they were accused of committing an economic crime on 20th July 2018

The Ethics and Anti-Corruption Commission today 20th July, 2018 arrested 6 of the 7 suspects and arraigned them in the Milimani Anti-Corruption Court. This follows after a meticulous investigations into allegations of fraud and irregular procurement of tender No NCC/RPW&T/T/196/2016-2017 for supply, delivery and installation of an asphalt plant at Nairobi City County. The ODPP with the investigation findings thus granting the Commission the consent to arrest and charge the suspects.

An asphalt plant is a plant used for the manufacture of asphalt, macadam and other forms of coated road stone, sometimes collectively known as blacktop or asphalt concrete.

The suspects include; Peter Gitau Wanjera-a Procurement officer, Edna Nyaitond Mayiekai, an Electrical Engineer, Nicholas Maina Mwangi-a Procurement officer,    Ephantus Gitonga Njoka- an Engineer,  Allan Muchira Nyaga– a Sub County Engineer,  Bernard Kigori- a Senior Clerical officer, Charles Gatheru Mburu– the Director of M/s Broadways Hardware & General Supplies Ltd and M/s Broadways Hardware & General Supplies Ltd. –the bidder  who was awarded the tender.

Investigations revealed that Nairobi City County officials conspired with the winning bidder (M/s Broadways Hardware & General Supplies Ltd) to substitute the tender form which had a price of 50 million with one containing a higher bid price of 150 million and insert an additional bid security in his tender to his favour. This means that Kshs 100 million was at risk of being siphoned from the County coffers.

The accused persons appeared before Anti-Corruption Magistrate Lawrence Mugambi were charged with the following charges 8 suspects for conspiracy to commit an economic crime contrary to section 47(a)(3) as read with section 48 (1) of the Anti-Corruption And Economic Crimes Act, 2003.  4 suspects for committing a fraudulent act contrary to section 176(1) (i) as read with section 176(2) of The Public Procurement And Asset Disposal Act No. 33 of 2015,   4 suspects for willful failure to comply with the law relating to the procurement contrary to section 45(2) (b) as read together with section 48 (1) of the Anti-Corruption And Economic Crimes Act, 2003.  4 suspects for deceiving principal contrary to section 41(2) as read with section 48(1) and (2) of the Anti-Corruption and Economic Crimes Act, 2003.

Hon. Mugambi released each of the accused persons on a cash bail of Sh400, 000. Alternatively they can pay a deposit of Sh1 million bond and a surety of similar amount to secure their freedom pending trial. Pre-trial conference will be on August 10th for purposes of fixing hearing dates.