Director of Criminal Investigations George Kinoti's team is intensifying efforts to trace financial flows linked to the dams scandal, with a focus on unexplained expenditures and potential money laundering networks.
The multi-agency task force, including the Financial Reporting Centre and Kenya Revenue Authority, has expanded investigative capabilities to track illicit funds through national payment systems and identify hidden assets. Investigators are examining procurement records for items like floor tiles, towels, and whisky, which may indicate diversion of public funds.
Experts are urging a review of suspicious transaction reporting protocols, arguing that non-bank entities such as lawyer-client accounts and numbered bank accounts should be included in monitoring. Current regulations only mandate commercial banks to report such activities to the FRC.
National Treasury Cabinet Secretary Henry Rotich has defended advance payments to contractors as standard practice, but critics highlight historical patterns where such arrangements facilitate bribery. The investigation is scrutinizing why Sh20 billion was released to an Italian firm facing bankruptcy proceedings, despite unresolved land acquisition issues.
Questions persist about the urgency of payments to the contractor, with officials questioning whether commercial obligations outweigh public interest. The probe is also examining the role of bid bonds from financially distressed entities and their validity as payment guarantees.
