Former Managing Director Ben Chumo has been arrested by DCI officers for committing offences of economic crimes.
Chumo was apprehended alongside a Ms Beartice Meso, General Manager, Corporate Affairs and the Company’s Secretary. Detectives are also looking for Peter Mwicigi, General Manager Regional Co-ordination who has been advised to report to the nearest police station for processing.
The trio will be charged with fraudulent acquisition of public property, aiding commission of a felony, abuse of office, willful failure to comply with the law relating to procurement among others.
Similarly, DPP Noordin Haji has ordered for the arrest and prosecution of the aforementioned people among others following investigations into Kenya Power tenders for supply of transformers and contracts for labour and transport services.
According to the DPP who is keen on eradicating corruption, KPLC management has been in cahoots with private individuals and companies engaging in criminal activities.
He further divulges that the rot in the lighting company is an interwoven scheme involving persons employed by the organization, family members and friends.
The transformers supply tender, he says was by a Muwa Trading Company Limited. Seven suppliers were going to supply Kenya Power with transformers for Sh.4.5 billion. But the DCI received word regarding substandard and faulty transformers lying at the KPLC depot (Nairobi South Main Store – Donholm) and initiated investigations into the matter.
In Muwa Trading Company’s case, the tender was worth Sh.408 million and was entered into on August 3, 2012 but was terminated due to massive failure rate of the transformers supplied and delays in the delivery of the transformers.
This gave rise to a civil suit for breach of contract but the case was later compromised and the matter marked as “settled.”
“Notably the details of the deed of settlement which had been negotiated between KPLC and Muwa Trading Co. Limited were not spelt out in the recording of the consent thereby keeping the court in the dark as to the term of the consent,” Haji said.
Haji also reveals that Kenya Power stopped inspecting goods because it was too costly to have engineers travel to the factory to inspect the transformers.
He has also added to the list of those facing abuse of office charges, Dr. Ken Tarus who was the company’s General Manager, Finance and is now CEO.
Peter Mungai Kinuthia, Joshua Mutua, Abubakar Swaleh, Samuel Ndirangu, Stanley Mutwiri, Benson Murithii and John Ombui who all work at Kenya Power will face charges similar to Chumo’s.
Muwa Trading Company directors; James Njenga Mungai, Grace Wanjira Mungai, John Anthony Mungai and M/s Muwa Trading Co. Limited will also face the same charges.
Haji has called on the Chief Justice, David Maraga and the entire judicial team to always insist on full terms consent being recorded when it comes to matters concerning public funds and contracts.
In regard to the transport and labor contracts, the DPP found that the tendering process of the 525 companies was riddled with irregularities and produced fake documents.
“Further, the allocation of contracts for works was shrouded in mysteries since a select group of companies / firms were found to have been assigned projects severally without a clear indication as to the criteria used to allocate the works,” he said.
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