This archive report was first published on 13 September 2019.
On September 13, 2019, the Ethics and Anti-Corruption Commission (EACC) opened investigations into claims that officials at the Ministry of Agriculture authorised the payment of Sh1.8 billion without prior approval of the oversight board and contrary to the Public Finance Management Regulations of 2015.
The money was withdrawn from the accounts of the Strategic Food Reserve Trust fund at Central Bank and paid to a private company as a pending bill.
According to preliminary findings, Commodity House Limited, a firm linked to a Mombasa businessman, received the said amount on July 1, 2019, and transferred Sh1.6 billion on July 2, 2019, to Hydery Limited and converted the balance of Sh200 million into US dollars.
Chief accounting officer at the State department of crop development Joyce Mutugi and another official Charles Minjire have already been questioned by EACC detectives.
Agriculture CS Mwangi Kiunjuri and his PS Hamadi Boga, officials at the Treasury's Integrated Financial Management Information System, who authorised the payment and those from the Central Bank, are lined up for questioning anytime, officials aware of the plans said.
Businessman Mohamed Jaffer is also expected to be questioned over the issue.
EACC CEO Twalib Mbarak said they had established that payment was made, yet there was no budget.
So far, it has been established that Sh2 billion was paid to Commodity House on June 25 from CBK Strategic Bank Reserve Account, but the payment was later reversed on June 28, 2019.
Strategic Food Reserve Trust Fund chair Noah Wekesa had complained the agency had been kept in the dark as payments were made.
Some MPs also protested the payment, demanding the resignation of Mr Kiunjuri and Prof Boga for delayed payment of farmers.
