EACC claims couple milked county Sh1.2b by supplying 'air'

From the case now before the Anti-Corruption High Court, Turkana County could have been bleeding billions from within for years, with its employees allegedly reaping big for allegedly supplying air through briefcase companies and proxies.

Stephen Gole Lowton worked as an accountant with the county until 2017.

Gole, alongside his wife Juliah Kamais Ekran, is now drawn into a court battle by the Ethics and Anti-Corruption Commission (EACC), which claims that a total of Sh1.2 billion from the taxpayers was allegedly siphoned from the county.

The commission further claims other players in this Napeyok Suppliers and Contractors Trabamo Investment Limited, Echwa Leboken, Kanalo Investment Limited, Lopeyok Lodunga Atol, Litman Contractors and Suppliers Limited, Shukry Omar, Kathra Yusuf Ali, Gimly Suppliers Limited and Ahamed Rashid Muhamud.

The transactions in question are alleged to have happened during Joseph Nanok’s and current governor Jeremiah Lomorukai’s reign.

 According to EACC, Gole allegedly hatched a plot to defraud the county. The anti-graft watchdog further claimed that its probe unearthed a total of Sh1.2 billion, which was paid in guise of procurement contracts to Trabamo, Kanalo, Lotiman, and Gimly.

“The plaintiff avers that the 1st Defendant is the mastermind of the scheme devised to defraud the county of colossal amounts of public funds. Investigations established that the first defendant is the beneficial owner of the 3rd, 5th, 7th and 10th defendant companies, which he used as conduits to siphon public funds through funds,” EACC court papers read in part.

 The commission said that first, it went to Gole’s residence and carted away crucial documents, which included delivery booklets, architectural drawings, performance bond, invoices, acceptance letters, notification of awards, agreements between the 3rd defendant and the county, bid bonds, purchase orders, payment vouchers, and general power of attorney, bank statements.

It further stated that, based on an analysis of all the companies’ bank accounts, the flow of funds from the county to the point of receipt revealed that the money would allegedly be systematically wired to Gole’s and Kamais’s fixed deposit bank accounts.

 Court documents exclusively seen by The Standard read that EACC also found unused original Local Purchase orders and unused Local Service Orders.

“Possession of the official and accountable County documents by the Is Defendant, a private individual, clearly demonstrates unlawful access to and control of secure government instruments, further evidencing his central role in orchestrating and facilitating the fraudulent procurement scheme and the siphoning of public funds,” argued EACC, adding that it was a deliberate move to allegedly conceal and illegally benefit from the county.

 EACC says that Gole was Trabamo’s director and shareholder until April 1, 2020. He allegedly transferred his shares and relinquished his position as a director.

Nevertheless, the commission averred that he remained a signatory to the firm’s bank accounts.

 Further, it claimed that Tramabo illegally acquired Sh418 million from the county between 2018 and 2024. According to the commission, the money was paid for allegedly rendering services and supplying goods.

Nevertheless, it argued that the same could not be proved as it allegedly requested supporting procurement documents, but both the county, Trabamo and Lobekan, but the county only gave 18 vouchers for Sh282 million.

According to the vouchers, EACC said the tenders were processed through the IFMIS platform.

However, the commission was of the view that the documents supplied were anchored on falsehoods.

 For example, it claimed that the company's audit documents showed it was transacting two years before it was registered.

“The plaintiff established from the retrieved bid documents that the third defendant did not meet the eligibility criteria set out therein. In particular, the 3rd Defendant submitted forged documents in support of various tenders, including falsified audited financial statements, falsified tax compliance certificates, and falsified recommendations from various institutions,” said EACC.

 The remaining amount of Sh214million, it also said, was paid for supplying air. EACC argued that there was nothing to show either goods or services were delivered or rendered.

The commission said that it traced Sh209 million to Gole.

 On Kanalo Investment, EACC stated that the company was formed on June 16, 2023.  It further said that between July 5, 2023 and February 13, 2025, the company allegedly received Sh357.9 million from the county for the supply of goods and services.

 Curiously, according to the commission, the company received Sh89.1 million on July 5, 2023, which was 19 days after its incorporation.

The commission argued that it was impossible for a company that was 19 days old to legally participate in the public procurement process and deliver for it to be paid the amount.

However, it said that a payment voucher of Sh94.3 million indicated that Kanalo had been successfully evaluated and awarded a tender on the basis that it had demonstrated financial capacity.

“The timing of the incorporation and the immediate receipt of public funds strongly evidences that no lawful tender process was undertaken. and that no goods were supplied nor services rendered,” the agency argued.

However, the commission stated that the financial statements covered the years 2020 and 2021, which were two years before it was incorporated.

In addition, the commission said that Kanalo, between October 11, 2023 and October 30, 2024, also received Sh174 million for allegedly supplying nothing and rendering no service.

In total, it stated that the firm received Sh357.9 million from the county, of which Sh 82 million was allegedly traced back to Gole.

 EACC argued that Lodunga was a proxy for Gole, and Kanalo was the vehicle that allegedly siphoned the money.

The other company, Lotiman, is claimed to have allegedly received Sh259 million between March 7, 2019 and July 7, 2024.

EACC said that it asked for backing documentation from Lotiman, Shukry, and Yusuf, but only got seven payment vouchers, which amounted to a total of Sh111.7 million.

According to EACC, only two were processed through the IFMIS.

Again, the commission argued that the documents indicating that the procurement process had been followed were allegedly falsified.

Lotiman is alleged to have also gotten an extra unexplained Sh154 million. On this, it claimed that it traced back some Sh33 million to Gole and his wife.

“Consequently, the funds totalling Sh259 received by the fifth defendant were fraudulent, unlawful, irregular, and made in blatant violation of the Public Procurement and Asset Disposal laws and public finance management principles,” the commission continued.

The story is similar for Gimly Supplies. The commission claimed that between 20, 2018, and March 10, 2023, it allegedly received Sh124 million. From the amount, some Sh47.9 million was allegedly wired to Gole.

The commission claimed that Gole allegedly got Sh339.5 million, of which he allegedly invested some Sh230 million in an Equity Bank fixed deposit account.  In addition, he and Kamais allegedly had an extra Sh33.3 million in a joint fixed account at Co-operative Bank.

The commission wants the court to order them to forfeit the amount to the government, arguing that they allegedly never participated in any procurement process and allegedly used falsified documents to support tenders.