EACC arrests NG-CDF fund managers over Sh4.8mn transformer project

• The EACC has arrested three suspects over the alleged theft of Sh4.8 million from the NG-CDF.
• The funds were intended to procure and install six electricity transformers, but no transformers were ever procured or installed.
• A fourth suspect remains at large and has been directed to report to the EACC's Upper Eastern Regional Office in Isiolo for processing and arraignment.

No transformers were procured or installed at any of the identified project sites, said EACC Secretary and Chief Executive Officer Abdi Mohamud.

The Ethics and Anti-Corruption Commission (EACC) has made significant progress in its efforts to combat corruption by arresting three suspects over the alleged theft of Sh4.8 million earmarked for rural electrification projects in Igembe North Constituency. The funds, allocated under the National Government Constituencies Development Fund (NG-CDF), were intended to procure and install six electricity transformers to connect rural communities to the national grid. However, investigators found that the money was siphoned through project bank accounts and withdrawn in full on the same day it was disbursed, with no transformers ever procured or installed.

The arrested suspects include former Igembe North NG-CDF Fund Manager Pauline Waruguru Mwangi and account signatories James Muroki Eusebio and James Ntonjira Ntongai. A fourth suspect, Joshua MMaroo, remains at large and has been directed to report to the EACC's Upper Eastern Regional Office in Isiolo for processing and arraignment.

The alleged theft of Sh4.8 million from the NG-CDF highlights the need for strict adherence to procurement processes and regular audits to prevent similar cases of corruption. The EACC has established that the funds were transferred into six project bank accounts before being withdrawn on the same day by the account signatories with the authority of the then NG-CDF fund manager. This raises concerns about the lack of oversight and accountability in the management of public resources.

The Rural Electrification Authority (now the Rural Electrification and Renewable Energy Corporation) and Kenya Power have confirmed that they neither received any payment nor any communication regarding the procurement of transformers for the identified project sites. The EACC's investigation has found that no transformers were procured or installed at any of the identified project sites, further highlighting the extent of the alleged corruption.

The arrest of three suspects over the alleged theft of Sh4.8 million from the NG-CDF is a significant step towards holding those involved in corruption accountable. The case highlights the need for lawyers advising on CDF projects to ensure that procurement processes are transparent, with regular audits and oversight to prevent similar cases of theft.

The EACC's commitment to safeguarding public resources and ensuring accountability is commendable. However, more needs to be done to prevent corruption in the management of public funds. The case serves as a reminder of the importance of transparency and accountability in the use of public resources.

Lawyers advising on CDF projects should be aware of the potential for corruption and ensure that procurement processes are transparent, with regular audits and oversight to prevent similar cases of theft.

Source: Original reporting via The Star