EACC Moves to Recover Sh220 Million from Ex-Sports Officials
EACC is seeking Sh220.4 million from five former senior sports officials including ex-Sports PS Peter Kaberia and former Football Kenya Federation (FKF) president Nick Mwendwa over alleged irregularities in the award of a tender linked to Kenya’s failed bid to host the 2018 African Nations Championship (CHAN).
The anti-graft body has filed a civil suit to recover the money from the officials who are accused of breaching procurement laws in a contract for upgrading sports facilities ahead of the continental tournament. The case follows the withdrawal of a related criminal matter. Other defendants are Sports Kenya engineer and liaison officer John Ruga, Sports Ministry director of administration Haron Komen, Isaac Okoth and French contractor Gregori International.
The dispute revolves around payments made in 2017 to Gregori International for renovations in preparation for the championship which was later shifted to Morocco after Kenya failed to meet CAF requirements. According to EACC, no inspection of the works was done, raising questions on value for money.
Court documents show the disputed amount was part of a Sh1.2 billion (€8.1 million) contract signed in September 2017 for design, mobilisation, soil preparation, grass installation and equipment fitting for five stadiums and 10 training grounds. Investigators say the Ministry went for direct procurement, disregarding advice from Public Procurement Regulatory Authority (PPRA) and failed to report the move within the 14 days required by law.
EACC also noted that critical documents such as bills of quantities, detailed specifications, tender forms and professional opinions were missing while the contractor provided their own specifications and designs. No evaluation committees were formed, no bid bond was secured and no negotiation was done.
Until the hearing, the High Court has stopped the Sports Department from paying Gregori International any more money or proceeding with the contract. EACC has accused the defendants of violating multiple laws including the Anti-Corruption and Economic Crimes Act, Public Procurement and Asset Disposal Act and Public Finance Management Act.
It also noted that Gregori International was not registered with the National Construction Authority (NCA) and therefore was not authorized to operate as a contractor in Kenya. Payments were made without verifiable documents, raising suspicions of corruption, collusion and fraud.
The commission is also seeking a declaration that the procurement process overseen by Mr. Kaberia was unconstitutional and illegal. Investigations found that key opinions from the Attorney General were ignored, no cost estimates or market surveys were done, and due diligence on the company’s technical and financial capacity was not done.
Interestingly, Gregori International got its Kenyan compliance certificate on October 31, 2017, nearly six weeks after signing the contract on September 14, 2017. The terms of the contract were skewed against the ministry, with advance payments tied to contract signing rather than certified work milestones.
The Sh220 million in contention was paid in two installments: Sh158.2 million in December 2017 as advance payment and Sh62 million later. Investigators said no project management, inspection or acceptance committees were in place as required by law, while Public Works officials denied involvement in oversight of the contract.
The suit is now before the High Court for determination.
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EACC Moves to Recover Sh220 Million from Ex-Sports Officials