The Kalonzo Musyoka Foundation had its operations put to a halt and accounts frozen by the government on Tuesday. The Non-Government Organisations Coordination Board came to the decision, sighting that the foundation has been engaging in money laundering and operating illegal accounts.
The board claimed the foundation could not account for Sh196 million, including Sh50 million from Chinese donor. The board has initiated a legal process to ascertain the criminal culpability of its directors, who include the former Vice President, Kalonzo Musyoka.
Fazul Mohammed,Board Chair has ordered that the entire Board of Directors be dissolved. Fazul alleges that the foundation has over time made false declarations in its financial status, annual returns and audited accounts.
According to a letter in possession of Citizen Digital, “The foundation has failed to disclose its donors. Understating the aggregate amount of donations received contrary o the mandatory requirement that all NGOs reveal their donors, donations received and the intended purpose of the donations.”
The foundation is also said to have received Ksh 50 million from the China Youth Development Foundation for the construction of classrooms in Ukambani, money the board says was not traceable and the Foundation’s bank accounts or annual returns.
The board also alleged the existence of secret, illegal and unauthorized local and foreign accounts further recommending forensic investigations for what was termed as possible cases of money laundering and diversion of donor aid.
The Government says it will deregister the foundation and possibly charge Kalonzo in court. The board yesterday wrote to the foundation about the decision, two months after the Government began investigating it.
The Kalonzo Musyoka Foundation together with Airtel Foundation and Ahadi Trust Kenya were in October 2015 reported to have been non-compliant.