EACC targets Sports Ministry officials over Sh746m air travel tender

Sports Ministry officials allegedly illegally pocketed millions of shillings from travel agencies as kickbacks for a tender to procure air tickets for Kenyan sportsmen and women, the High Court has been told.

This damning claim is contained in a case filed before the Anti-Corruption High Court by the Ethics and Anti-Corruption Commission (EACC), alleging that the saga was ongoing for more than four years, with part of the money ending up in the Central Bank of Kenya as an investment in government securities, while another chunk was wired back to the officials.

At the heart of the case are the Head of Supply Chain at the Sports, Arts and Social Development Fund (SASD), Veronicah Kanini; Senior Accountant at the same institution, David Musau; Deputy Director Sports, Caroline Muthoni; Deputy Director Accounting, Otis Mutwiri; and Kimner International Ventures.

EACC, in its case, stated that between 2019 and 2023, SASDF initiated a tender for air ticketing. Among those who bid were Afromerch Travel Kenya Limited, Smart Flows Travel Limited, and Turkenya Tours and Safaris Limited.

According to the anti-graft watchdog, one of the requirements was that the firms be registered with the International Air Transport Association (IATA). Afromerch and Smart Flows were allegedly found to be non-responsive after evaluation.

 However, EACC alleged that Kanini caused the two companies to be listed as pre-qualified suppliers for the years 2020-2022.

It accused her of failing to prepare a professional opinion prior to the generation of the pre-qualified list of suppliers.

On the other hand, it stated that Afromerch listed one Martin Mungai as its director, while in essence he was allegedly not part of the company.

EACC further alleged that Musau authorized payments to Afromerch and Smart Flows. In total, the commission the two firms illegally acquired was at least Sh 402 million from the taxpayers.

It claimed that Afromerch was paid Sh 35 million before it was incorporated, as it submitted an IATA letter dated July 27, 2018, while it was established on August 22, 2019.

According to EACC, Smart Flows did not attach the crucial document. It laid blame on the SASDF’s senior supply chain management officer, Peter Ngugi, for allegedly failing to ensure that it had all documents in place before giving a greenlight for a go-ahead.

The commission alleged that between 2019 and January 2024, the two travel companies allegedly acquired at least Sh 320 million.

“The plaintiff avers that by submitting false, inaccurate and/or incomplete information, the first and second defendants were not eligible under Section 55(5) of the PPAFA to be prequalified as suppliers, ought not to be placed on the pre-qualified list or otherwise awarded contracts,” argued EACC.

The Abdi Ahmed Mohamud-led agency claimed that the two companies allegedly unlawfully acquired a total Sh746.5 million.

From the amount, the commission claimed that the two allegedly transferred Sh503 million to Turkenya, out of which Sh215 million was subsequently allegedly used in the purchase of government securities.

Turkenya then allegedly wired USD 3750 (Sh 485,791.50) into Kanini’s account. At the same time, Musau allegedly received more than Sh20.3 million from the same company through his M-Pesa and bank accounts.

Further, the commission claimed that Muthoni allegedly received Sh4.3 million from Dickson Kibunyi, Sh1.05 million from Turkenya, Sh322,000 from Kibunyi, and Sh190,000 from Kibunyi again.

It then alleged that Mutwiri received Sh 71.1 million, which it argued were allegedly kickbacks.

EACC insisted that the contracts worth Sh565 million and Sh180 million were made contrary to the law, and the civil servants allegedly ended up being beneficiaries.

“The plaintiff’s claim against the defendants is that the contracts awarded to the first and second defendants were procured through illegal conduct. The said defendants were ineligible and used falsified documents; and the procurement process was unlawfully manipulated to include the said defendants in the prequalified list of defendants awarded contracts,” argued EACC.

It now wants the court to find that the Sh746 million payment to the two firms was unlawfully paid and was tainted by illegality and violation of the procurement law. It wants the court to force Afromerch, Smart Flows, Turkenya and Kibunyi to pay Sh274 million. It is also seeking Sh291 million from Afromerch, Kibunyi, Maureen Wangui, Ngugi and Mutwiri.

EACC is further seeking Sh 139 million compensation from Smart Flows, Kibunyi, Wangui, Ngugi and Mutwiri. It also wants the four to pay Sh 41.4 million.

It is also seeking an order for forfeiture of more than Sh 230 million held in Equity Bank’s separate accounts in the names of Turkenya, Afromerch, Smart Flows and Muthoni.

The commission also seeks restitution against Afromerch, Smart Flows, and Wangui amounting to Sh565 million and a further Sh180 million against Smart Flows, Kibunyi and Wangui.

It also wants the court to order Kanini to pay USD 3750, Musau Sh20 million, Sh4 million against Muthoni and Sh71 million against Mutwiri and Kimner.

The alleged sports tender kickbacks

Sh746.5m: Total amount EACC alleges was unlawfully acquired by two travel firms.

Sh503m: Allegedly transferred by the two firms to Turkenya.

Sh215m: Portion allegedly invested in government securities.

Sh20.3m: Alleged payments received by Senior Accountant David Musau.

Sh71.1m: Alleged kickbacks received by Deputy Director Accounting Otis Mutwiri.

Sh4.3m: Alleged payment received by Deputy Director Sports Caroline Muthoni.

US$3,750: Alleged payment wired to Head of Supply Chain Veronicah Kanini.

Sh230m+: Funds EACC seeks to have forfeited from Equity Bank accounts.

Sh565m + Sh180m: Restitution EACC is seeking in two separate claims.

2019–2023: Period covered by the alleged tender irregularities; payments allegedly continued into January 2024.