EACC to arraign suspects in the State Department for Correctional Services’ Kes450 million supply scandal
18:07:2024: EACC has today arrested Eric Kipkirui Mutai, a cleaner at the State Department for Correctional Services and the director of seven of the 18 companies that were paid Kes450,138,000 for goods and services not rendered.
Mr. Mutai, whose seven companies received Kes257,220,500 was arrested alongside Sarah Kemunto Kerandi, Chief Finance Officer; Moses Juma Sirengo, Principal Accountant; and Jack Nyariango Ogao, Accountant all of them officers of the State Department for Correctional Services, and Maureen Ndungwa, a director of one of the companies involved.
The suspects have been processed at EACC, Nairobi Integrity Center offices and will, together with eight others that were yet to be arrested, be arraigned on various charges including abuse of office, fraudulent acquisition of public property, conspiracy to commit an offence of corruption, and money laundering at Milimani Anti-Corruption Court tomorrow, July 19, 2024.
EACC investigations established that officials of the State Department for Correctional Services and proprietors of 18 companies engaged in fraudulent acts, conspiracies and forgeries to defraud the public of Kes450,138,000 paid to them for food and ration that they did not supply.
Eric Kipkirui Mutai, it was discovered, was employed by the State Department of Correctional Services in 2009. From 2017, he was based at Teleposta Towers as a senior support staff member in the procurement section. The Companies Registry also established that he owned the firms listed below, showing the amounts each received from the State Department of Correctional Services’ Central Bank, account No. 1000302054.
| Company Name | Date of Registration | Nature of Business | Amount Received in Kes | |
| 1 | Homex Logistics Enterprises | 24 Feb, 2016 | Groceries, vegetables, and food | 62,560,000 |
| 2 | Hygienic Ventures | 24 Feb, 2016 | Hair products and sanitary | 56,223,000 |
| 3 | Facton Logistics Enterprise | 24 Feb, 2016 | Consulting services on constitutional law | 13,200,000 |
| 4 | Unique Supplies | 19 Feb, 2016 | Grocery | 79,417,500 |
| 5 | Nerimas General Agencies | 11 Nov, 2013 | 22,145,000 | |
| 6 | Trechris Investments | 11 Nov, 2013 | Supply of goods | 13,600,000 |
| 7 | White Unicorn Limited | 11 Feb, 2015 | 10,075,000 | |
| TOTAL | 257,220,500 |
It must be noted that two companies, Nerimas General Agencies and Trechris Investments were registered on the same date, November 11, 2013, and three on the same date, February 24, 2016.
Payment vouchers show that the seven companies supplied various prison facilities, including Nairobi Remand, Kamiti Main Prison, Nairobi West Prison, Lang’ata Women, Kamiti Medium, Kamiti Yctc, and Nairobi Medium. Investigations, however, established that the companies did not supply any of the prisons, and the payment vouchers did not originate from them.
Besides, it was also established that there are no LPOs, inspection and acceptance committee certificates, or payment vouchers, delivery notes do not list receiving officers, and the payments are not charged in the respective vote books of the prisons where deliveries were purported to have been made.
Further analysis of the investigation reports also established that Kes133,934,983 of the Kes257,220,500 received by Mr. Mutai was withdrawn in cash for unspecified purposes. The rest was used to purchase properties for Mr. Mutai and his close associates.
The Commission has asked the remaining suspects, who have since gone into hiding, to surrender at the earliest opportunity possible. They are Benjamin Njoga, Deputy Commissioner General of Prisons; Mageto Omari Mirieri, Assistant Director Supply Chain Management; Joseph Kamau Mwangi, Head of Accounts; and Humphrey Wende Abok, Accountant.
Others are Ochoki Joseph Omaiyo, Prison Warder; Stephen Kisonzo Mulwa, and Joseph Kariuki Mwangi, both directors of private companies that were involved in the fraud.
