As the 2017 general elections approach, President Uhuru Kenyatta faces significant challenges in addressing corruption within key governance institutions, including the judiciary and civil service.
An annual audit of government accounts by Auditor General Edward Ouko revealed widespread mismanagement of public funds, with only 1.2% of the 2013-14 budget correctly accounted for and approximately $600 million unaccounted for.
Emergence of Dealmakers ¶
A group of businessmen and dealmakers, some of whom attended school with President Kenyatta at St Mary's School, have re-emerged, seeking to secure lucrative tenders in various government departments.
This cartel is linked to a diplomatic feud between Japan and Kenya over a tender for an international company to manage the second container terminal at the Port of Mombasa.
Hideo Uguchi, the chief representative of the Japan International Corporation, protested against Treasury's interference in the tender, warning that changes at this stage could impact future assistance to Kenya.
Procurement Process Controversy ¶
The Treasury ordered the Kenya Ports Authority to introduce new rules in the bidding documents, allowing the winning firm to negotiate the financing process for future phases of the project.
This move favors Chinese companies, which the cartel is reportedly fronting, and raises concerns about transparency and accountability.
Response from Government Officials ¶
Nzioka Waita, the director of delivery, has held meetings with officials from both Kenya and Japan to address the issue.
Public Accounts Committee chairman Nicholas Gumbo has threatened to institute a special audit to ensure the public receives value for its money.
Background of Key Figures ¶
Former permanent secretary Dave Mwangi, businessman Jimmy Wanjigi, and former personal assistant to President Kibaki, Alfred Gitonga, were prominent figures in security deals during the Kibaki era.
John Githongo, the former Governance and Ethics permanent secretary, exposed mega-corruption deals executed at the Office of the President, leading to a US travel ban for Wanjigi and Gitonga in 2006.
According to a WikiLeaks cable, the US Embassy in Nairobi sought to bar Wanjigi, Gitonga, and their associates from entering the US due to their alleged involvement in corrupt government contracts.
Current Activities of Dealmakers ¶
Jimmy Wanjigi has embedded himself in government by planting informants who disclose tender information, allowing him to quote favorable figures and secure lucrative deals.
Wanjigi has connections with high-ranking officials, including Maluki Mwendwa, the chairman of the Nema board of management, and has been involved in various infrastructure projects, including the construction of the Greenfield Terminal.
