BY SAM ALFAN.
An Anti-Corruption High court has restrained four companies and ten individuals linked to Afya house Mega scandal from withdrawing and transferring millions of shilling held in three different bank accounts.
In her 24 page ruling presiding Judge Hedwig Ong’undi ordered that there were issues surrounding the procurement of the contract to supply the portable clinics must be resolved before making further directions for disposal of the preserved money.
“The defendants by the themselves, agents, servants ,employees or any other person whosoever be restrained from withdrawing funds, transferring , disposing or in any other way dealing with funds held in in three bank accounts Business Capital Access Limited,” ruled Ong’undi.
Among those restrained from withdrawing or transferring Sh 94 Million are lands PS Nicholas Muranguri, Head of supply chain management (procurement) Ephantus Maina Thiga, Njange makanga a director to Estama Investment Limited, Business Capital Access Limited, Medafrica Limited and a manager to Diversity Distributors Limited and from transferring money from Equity Bank and Kenya Commercial.
Others included Benn Khadlagala, Mamo Umuro,Peter Ngathenge, Elkana Ong’uti, Susan Otieno, Dr Ombacho Kepha Mungere who is the current director of medical services and Kariuki Ireri Njagi .
The learned judge further ordered that Sh 997,964,00 held in the account of Edmar Enterprises Limited at Equity Bank belonging to be deposited in the account of EACC at KCB Milimani Branch.
The court further said that that it will make a determination on Sh 5 million deposited by Kenya Goodland Investment Limited in the EACC account during the final determination of the case.
The orders where issued after EACC instituted proceeding to recover Sh 800 million against the several companies and 10 others including PS Muranguri then director of Medical services at MOH.
In an affidavit filed in court by Paul Mugwe, EACC urged court to issue an order stopping the withdrawal and transfer of the money since the agency is investigating allegations of illegal award of an overvalued tender awarded to Estama Investment Ltd which they claim was a scheme to defraud the Ministry of Health by unlawfully failing to follow procurement procedure.
Mugwe said that investigations so far conducted disclosed that Estama Investment Ltd was awarded a tender No. MOH/HQS/ RT/019/2014-2015 to supply the Ministry of health with 100 portable medical clinics at a cost of Sh 10 million per to a total cost of Sh 1 billion.
They informed the court that Estama contracted a Chinese company Guangzhou Money Box Steel Structure engineering Company limited to pre-fabricate the 100 portable Medial clinics.
The officer said that Njange Makanga who is a director of Estama investment Ltd, Business capital Access Capital and Meda Africa Ltd and a manager of Diversity Distributors Ltd which was awarded the contract and paid the monies.
According to EACC court documents Estama investment limited was paid Sh 800 million by the Ministry of health out of the contract total amount of Sh 1 billion as per the tender.
It is said that the payments were done despite the Ministry having a Budget, a procurement plan for the 100 portable mobile clinics and having insufficient funds for teh said procurement.
Mugwe further averred that investigations revealed that procurement procedures were faulted by the Ministerial Tender Committee.
He also informed the court that the MTC failed to consider the funds available and went ahead to approve a restricted tender procedure without adhering to procurement laws.
The investigator faulted the tender committee for coming up with a list of supplies not selected from the Ministry of health pre-qualified list of supplies for the financial year 2014 to 2015 contrary to the Public and Procurement Disposal act.
The court heard that out of Sh 800 Million paid to Estama Investment limited by the Ministry of Health Sh 776 million was transfered to the Business Capital Access limited in account held at Family Bank.
Further another Sh 420 Million was transferred from Business Capital Access limited account to it’s other account held at co-operative Bank and later the monies were transferred to different entities.
Mugwe said that Sh 489,580.693 were transferred to Guangzhou Money Box Steel Structure engineering Company limited, Sh 178,720,520.25 was transferred from Business Capital Access limited bank account to several companies and individuals in Kenya including Edmar Enter[prices, Kenya Goodland Investment Ombkeru limited, Oyster Properties, Ephantus Maina Thiga and Serochemis Investment.
On January 5,2017 EACC had obtained preservation order of six months for Sh 88.1 million held in two Equity bank accounts belonging to Business Capital Access limited and also Makanga the director of the said companies.
the anti-grant agency further obtained preservation order of Sh 997,964.00 and Sh 5 million held at Equity bank for a period of six months.
The Estama Investment Ltd through its director Makanga had opposed the EACC application on grounds that they had honored the contract and supplied the 100 portable clinics as per the agreement.
Makanga also said that they had notified the Ministry in a letter dated January 12,2016 and June 6,2016 and were directed to store the clinics at National Youth Service base at Maritini, Mombasa.
He further admitted that he was paid Sh 800 Million by MOH out of a contract Sh 1 billion in respect to the tender.
The company director further said after receiving the monies they contracted the Chinese company which he claimed it had specialized skills in the pre-fabrication of contains and house to fabricate the medial clinics.
Makanga further informed the court that the monies in question were loaned by Business Capital Access limited which is a registered micro finance company.
According to the court papers, the Chinese company, Guangzhou Moneybox Steel Structure Engineering Limited, received only Sh525,298,193.46 through Business Capital Access limited.
The court heard that Kenya Goodland Investment company through it’s director Chen Quanfu is a real estate business company which put up residential and commercial to willing buyers.
Quanfu said that the Sh 5 million that was preserved was a deposit payment made by a client who bought a house worth Sh 15 million along Turbo Road in Kilimani.
The company has since been expunged from the case proceedings.