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'Khusieve' hottest tune is here
Kakamega school closed after 'evil spirits' attack pupils

By Jackline Inyanji, February 25 2015
Eleven pupils of Shiraha Primary School in Kakamega are living in fear after being attacked by alleged ‘evil’ spirits for a second time this year. They were allegedly attacked while at school and the incident disrupted learning the whole day. It is reported that the pupils fell on the ground in what looked like an epileptic fit. They were allegedly calling out names of unknown people and pleading with them to spare them from being strangled. The school headteacher Gilbert Otaro confirmed the morning incident saying one Standard Seven pupil fainted while they were at the parade. “It started with this girl who fainted at the parade. Before we could attend to her, some pupils also started to behave in a weird manner,” said Otaro. He said those affected screamed loudly alerting the whole village as neighbours ran to the school to witness the strange incident. “People were attracted by their screams. I have never witnessed such incident in my entire life,” he said. Otaro said they called in Administration Police (AP) to calm angry parents, who demanded answers from the school administration. Otaro added that that county education officers. He said quality assurance officers came in and accessed the situation and the school was closed to pave way for investigations. More...

Kidero exonerates himself over Mumias financial woes, blames new management

Evans Odhiambo Kidero
Dr Evans Odhiambo Kidero, the Nairobi governor has come out fighting allegations of financial improprieties when he was CEO of Mumias Sugar Company between 2003-2012.

By Felix Olick, February 17 2015
NAIROBI Governor Evans Kidero yesterday blamed the managers of the Mumias Sugar Company for its dwindling fortunes and insisted that his nine years as CEO reversed its “steady loss-making path”. Kidero issued his statement in response to media articles that followed a report by audit company KPMG, and a statement issued at the Nairobi County Assembly last week by Nairobi Senator Mike Sonko. Kidero maintained that he left the company in a sound financial state, having made Sh48 billion as cumulative profits. “The people who have since been charged with running the company should answer questions on the woes betiding MSC. With insignificant changes here and there, the Board of directors remains the same as it was when I joined the company,” Kidero said.

“The present Managing Director (Coutts Ottolo) was a member of the Board and the chairman of the Finance and Audit committee of the Board. It is deceitful for any one of these directors to feign ignorance on the things they approved while I served under them,” said Kidero. Kidero insisted that when he was MD, MSC had clean audits and its operations were aboveboard. He said that if the dubious deals had been the practice, both internal and external auditors would have captured them and raised queries. “While the KMPG draft report remains just that – a draft report – it’s disturbing that it forms the basis for unfounded, highly damaging and actionable allegations,” Kidero maintained. “Allegations of unilateral award of tenders, sale of export sugar on the local market and irregular procurement are entirely devoid of any grain of validity.”

Coutts Otolo earns sh2m per month

Kidero said Mumias was in a management crisis before he took over and made a loss of Sh244,858,000 in 2002. Kidero was the Managing director between October 2003 and June 2012. “In June 2012, I left MSC in a very sound financial state. In my last financial year as MD, the company made a net profit of Sh2.6 billion,” Kidero said, warning that the explanation for the company's floundering fortunes would not be found by pointing fingers at “innocent people”. He revealed that the Board has since increased the chairman's stipend to Sh450,000 per month while the MD pockets Sh2 million monthly. “Board members collect sitting allowances of KSh45,000 per sitting per member. They sit almost every day. It’s not difficult to tell what ails MSC,” he concluded.

Last week, Senator Sonko tabled documents in the county assembly to prove that a network of people who had been involved in irregular deals in Mumias have now camped at City Hall, with their companies taking many tenders. He named the people behind the companies as Kidero's chief of staff George Wainaina, Kula Mato, Yunis Ibrahim Khalif and Peter Hongo. YH Wholesalers had a contract with Mumias to obtain 13,450 tonnes of sugar at a discounted price of Sh1.14 billion. It has since been given various tenders by the Nairobi City County Government. One of the directors of YH Wholesalers is Ibrahim Khalif Mohamed who is also a director at Alpha Grain Millers, which shares the same offices as another company doing business with the county government, Sifa Bins. Sifa Bins, which has a contract to collect garbage in parts of Nairobi, has been managed by Peter Hongo, a former business development manager at Mumias Sugar.

The three directors of Sifa Cleaning and Bins services include Joseph Kula Mato, who is also a director of Quids Enterprises Ltd. Another director of Quids is a company known as Lopiding Transporters Ltd, whose postal address is 69 Lokichogio. This is the same address registered to another company, Loki Merchants Limited, whose directors are George Wainaina and John Njogu. Wainina and a relative, John Wainaina, are also the directors of The Cups Limited, which has also been doing business at the county. Sonko also questioned why lawyer Tom Ojienda, who is Kidero's family lawyer, has been appointed a Nairobi County lawyer. More...

Meet the faces behind Mumias' Shs1.2b sugar scandal

Benson Sande Ndeta
Benson Sande Ndeta, the former managing director of East African Portland Cement, who hails from Mumias.

By Paul Wafula, February 9 2015
High flying businessman Benson Sande Ndeta was relaxing in the US with his family during his Christmas holiday when the email came. The email hit his inbox on December 14, 2012. It was from Mumias Sugar Company and the contents went straight to business: “We are formally requesting you to quote for the supply of sugar (import) from a Comesa country to the tune of 100,000 tonnes in one year starting from January 2013.” The email author was Mumias Finance Director Chris Chepkoit. What Mr Ndeta did not know then was the missive was the beginning of a Sh1.2 billion importation scandal that would later haunt the millionaire. Upon receiving the email, Ndeta had to cut short his holiday and hopped onto the next flight back to Nairobi.

The millionaire, who is the most significant outside link to the importation scandal, arrived in Nairobi several days later to be handed the controversial contract that left Kenya’s biggest miller bruised and bleeding. Ndeta, the chairman of Savannah Cement comes from Mumias and has a long standing relationship with the sugar company. The land on which Kenya’s biggest sugar miller sits on in Mumias is understood to have belonged to his grandfather. Ndeta who is mentioned and has seen a copy of the top secret forensic report by audit firm KPMG, however, finds it ridiculous that ‘journalists’ would focus on him yet he is mentioned in less than 10 pages in the 338 page report. An architect by profession, Ndeta likes to come out as a man of means. In an interview with The Standard which he conducted via phone after returning our call announced he was overseas but agreed to discuss the dossier. He maintained that he was just helping out Mumias which “was going through a rough spot”. Ndeta said he owns 100 per cent of Dantes Peak, a company that was handed the sugar import deal despite never having imported even a kilogramme of sugar in the country before. His firm, who’s other shareholder is listed as Yvonne Katusime, is registered as a cement and ballast company. He had no sugar importation licence.

The management gave Ndeta’s firm the deal long before going to the board for approval in contravention of procurement procedures. Had the deal gone on as planned, Mumias was to make over Sh300 million to boost its profitability. But everything went south almost as soon as the ink on the contract had dried. According to KPMG, Dantes lacked the financial muscle to deliver on the deal but Mumias executives went ahead to vary the quantities to be imported to the detriment of the miller. Ndeta strongly refuted these allegations. “Mumias approached me to import sugar on their behalf. They gave me a contract of 100,000 metric tonnes of sugar. I brought the first 10,000 metric tonnes with my own money and Mumias was supposed to sell and give me back my money. I am the one who ended up losing money,” Ndeta told The Standard in the telephone interview. Eventually, Mumias was left in a position where it took direct responsibility and all liability for all actions with regard to importation including those it did not initiate. The transaction resulted in Mumias incurring losses of Sh531 million without taking into account contingent costs of Sh233 million.

KPMG says that when these losses crystallise, the total losses in the importation racket alone could balloon to approximately Sh765 million. “This loss was occasioned by paying higher than agreed costs for the imported sugar as well as sales of the same at values that were significantly lower than the cost of the sugar,” KPMG says. “As at the date of the board approval, MSC management had already confirmed to Dantes Peak that they would be the importers of the sugar on MSC’s behalf, the quantity of sugar to be imported and the estimated date of arrival of the first shipment,” the report reads. Ndeta confirmed that he had seen the copy of the report and admits he indeed owned Dantes Peak in full. See Also: Mumias Sugar faces lawsuit over Sh45m security claim However, he dismissed claims that his firm lacked the financial muscle to effect the contract and instead charged that he was in fact “doing Mumias a big favour” in going ahead with the contract in which he ended up losing money. “I am 100 per cent sure that I assisted Mumias and in the process ended up losing Sh80 million when I delivered on my responsibility. Mumias was to pay for the taxes and the rest,” Ndeta said. “I import large quantities of clinker per day. So I may never have imported a kilogramme of sugar but that is a nullity because I delivered the sugar in the time frame agreed,” he charged before threatening to sue The Standard in case his name was maligned. According to the KPMG forensic audit, Dantes was selected by Finance Director Chris Chepkoit without due diligence. More...

Mumias Sugar to sue Kidero-era managers over corruption

Coutts otolo and Dan Ameyo
Coutts Otolo (left) the Mumias Sugar Managing Director and its Chairman, Dan Ameyo during a press conference where they announced that past managers would be prosecuted over corruption. Photo: Collins Oduor - STANDARD

By Moses Michira and Nicholas Waitathu, January 31, 2015
Mumias Sugar will fire and prosecute its management in a decisive twist that could also have current and past managers surcharged to recover stolen funds. Agriculture Secretary Felix Koskei, has told The Standard on Saturday of an elaborate plan to revive the firm, including immediate replacement of top management, months after audit firm KPMG unearthed major scandals that forced the country’s largest miller to its knees. “The legal process has taken its course on each and every individual that has been found culpable in whatever manner on what has brought Mumias to its knees,” Mr Koskei wrote. Already, the firm has announced vacancies to head all departments – almost seven months since chief executive Peter Kebati and commercial director Paul Murgor were fired. Board Chairman Dan Ameyo, told ‘The Standard’ in June last year, that the duo were involved in criminal activities including illegal sugar importation in a scam that cost Mumias more than Sh1.1 billion. No charges have been brought before the two, while we could not determine if any progress had been made on threats of surcharging them.

But yesterday’s decision to sack even more executives was reached after years of investigation into the collapse of the miller by the agriculture committee of the National Assembly. A final report is, however, yet to be tabled amid claims of a split in the committee orchestrated by people who were implicated in the scandal, several committee members have told ‘The Standard’ in separate interviews. In an attempt to show fresh resolve, Mr Koskei added that the State would ‘not watch as they walk free and enjoy ill-gotten wealth’ in his threat. He, however, did not reveal any names, but was specific about a board directive to replace top managers. “The MSC board has already approved the advertisement and recruitment of staff with requisite competences, work ethics and culture to drive the company back to where we would all want to see it.”

Towards turning around the fortunes of the firm, Mr Koskei said that the State had come up with a bouquet of measures that would reverse the miller from the downward spiral it is on. Among them is a Sh500 million bailout that would be released within the week to enable the firm in settling its current overheads. “We intend to engage all Government agencies such as KRA and KPLC to whom Mumias is heavily indebted to support the bail-out process by putting on hold any precipitate action a commitment that has already been demonstrated by other key lenders,” Koskei said of the firm’s saving grace. Mumias is heavily indebted to the power distributor for outstanding electricity expenses, and to the Revenue Authority for unremitted taxes. The firm has sunk to its lowest, turning losses for successive years and losing more than half of its market share locally. In just two years, the miller has reported Sh4.3 billion in cumulative losses – attributing the poor performance to illegal imports of sugar that complicated its marketing. Even with the claims from the management and board, Parliament had evidence that the firm’s bosses were culpable in the very fraud. More...

What Mumias owes

The company currently has borrowings totaling a whopping Sh6.2 billion comprised of Sh 4.6 billion term loans and Sh1.6 billion in working capital facilities that it is currently unable to service. In addition, the company owes approximately Sh5 billion to other creditors including outgrowers (Sh424 million), Kenya Revenue Authority (Sh2 billion). and customers and distributors Sh533 million. Kenya Power is owed Sh47 million but has also claimed Sh953 million as penalties for purported failure to supply power under a power purchase agreement the two parties signed several years ago. More...

Luyia man to head electoral body

Ezra Chiloba Simiyu
Ezra Chiloba Simiyu, the new boss of the Independent Electoral and Boundaries Commission of Kenya. Photo: STANDARD

By Wilfred Ayaga, January 13, 2015
The Independent Electoral and Boundaries Commission ( IEBC) has appointed Mr Ezra Chiloba Simiyu as the Commission Secretary and Chief Executive Officer. A statement by IEBC chairman Ahmed Issack Hassan to all newsrooms yesterday said that Chiloba was “the most successful candidate in the interviews.” The new CEO who will steer the commission through the next General Election in 2017 is currently the Deputy Team Leader, DAI (Drivers of Accountability). He has previously served as Governance Analyst and Project Manager for UNDP Kenya. He holds a Master of Arts degree in Public Policy from the Central European University and a Bachelor of Laws degree from the University of Nairobi, and is a senior fellow at the Policy House and a member of the Law Society of Kenya (LSK). Before the late announcement of Simiyu’s appointment, Hassan and other commissioners were held up in day-long interview sessions with the four candidates, including the current acting CEO Beatrice Sungura Nyabuto. The position fell vacant following the suspension of James Oswago in August last year.

The four were picked by PriceWaterHouse Coopers from a short-list of nine candidates who had applied for the position. The post of CEO was advertised in August following the suspension of the former CEO who was hauled to court on charges of abuse of office and irregular procurement of electoral kits by the IEBC. Oswago, together with four other former officials, is accused of presiding over an opaque procurement process that resulted in the malfunctioning of electoral kits in the last general election. All five accused have denied the charges. The interviews lasted late into the evening. The current acting CEO later spoke to The Standard and said she was waiting for the results of the interviews. “I have been interviewed and we are waiting for the outcome,” said Nyabuto. The first task of the new CEO will be to preside over the Homa Bay County and Kajiado Central constituency by-elections to be held next month.
Read more at: https://www.standardmedia.co.ke/article/2000147658/ezra-chiloba-simiyu-appointed-new-iebc-chief-executive-officer

Why the Wanga have not tasted power since Nabongo Mumia

nabongo Peter Mumia II
Nabongo Peter Mumia II, the regnant sovereign of Wanga Kingdom. Photo: STANDARD

By Grace Wekesa, January 2 2015
The proud and mighty Wanga people of Mumias once called the shots, dominating and riding roughshod over smaller communities in Western Kenya during the dynasty of Nabongo Mumia. But they seem to have faded into political oblivion and are today ‘led’ by the Luo, Maragoli, Bukusu and the Samia they once lorded over.

Such is the reversal in their fortunes that they have never been ‘rewarded’ with a full cabinet position since independence. Neither have their sons or daughters held even remotely powerful positions in government, perhaps since retired Justice Benna Lutta - Nabongo‘s grandson - was appointed Solicitor General and Judge of the defunct East African Court of Appeal.

More telling is that the Wanga, who privately consider themselves ‘superior‘ to other Luhya sub-tribes, have never organised themselves into a political party since independence. As a result, their weight of numbers across the three constituencies of Mumias East, Mumias West and Matungu has never been felt either on the political or economic fronts.

Martin Oloo, a lawyer and political analyst, attributes this state of affairs to, clanism within the Wanga community, that prevents them from forming a recognisable politcal outfit. “It is impossible for leaders or locals to speak in one voice. Unity cannot be achieved where clanism is fronted,” observed the analyst.

Oloo, who hails from Mumias, notes that although Mumias Sugar Company (MSC), which is the economic backbone of Mumias and the wider western region, is in their backyard, and the fact that they have highly qualified people, the Wanga have not been able to assume leadership of the company because their leaders are preoccupied by petty squabbles and the quest for self aggrandisement.

The giant sugar miller has thus been managed by people from other communities since inception, a thing that would not be taken kindly in other parts of Kenya.

Nabongo Mumia Shiundu
Nabongo Mumia Shiundu (1849-1949), the most powerful Wanga king ever.

Nabongo Peter Mumia ll, who is the current leader of the Wanga ‚kingdom, however dismisses those calling for a local to be appointed MD of the ailing sugar company, saying it is a private entity and that anyone competent can head it. “No one has barred a Wanga from heading Mumias company. The shareholders expect good results and anyone qualified is at liberty to be at the helm,” says Peter, a former accountant.

But Prof Amukoa Anangwe, a political scientist, one time Butere MP and lecturer at Dodoma University, Tanzania, observed that the Wanga culture of welcoming and accommodating other communities within their ranks, has made them less aggressive in demanding their stake in key leadership positions in politics and the economy of the region.

“Lack of aggression in demanding for positions sets them aside from other Luhya sub-tribes who will always make noise and even demand that their children be placed in key positions,” noted Prof Anangwe.

Justin Mutobera, a political advisor in the office of Governor Wycliffe Oparanya, said the lack of political initiative among the Wanga has also caused them to be overlooked in discussions surrounding the unity of the larger Luhya tribe, which Anangwe separately dismissed as a mirage.

Mutobera noted that many of the leaders pushing for Luhya unity hail from sub-tribes that have traditionally showed aggressiveness in the political arena.

“We have been overlooked yet we are an important voting bloc in the region. Current leaders in the political arena are not interested in true unity because they don‘t extend invitations to other Luhya sub-tribes,” stated Mutobera.

He also claimed that previous leaders in the area kept to themselves, never reaching out to neighbouring communities in Bungoma, Vihiga and Busia counties, adding that this is one reason MSC is suffering.

“Our leaders have been selfish and unable to mobilise the western Kenya community to fight for the sugar company or agitate for a Wanga managing director. Those who raise their voices do it for personal gain. It is high time someone from the community is appointed to the helm, but we know there are cartels locking out potential individuals from the community,” he stressed.

But Prof Anangwe ‘warns’ that the Wanga vote is critical in Western region, despite their slow and cautious approach to political issues.

“The people of Mumias determine what happens in Luhya politics and cannot be wished away in the area‘s political structures. Wanga people tend to take a common political stand whenever the need arises and many a times, they will take a collective decision that is good for the clan when required to rise to the occasion,” he says.

Why do they then seem unable to assume their historical place as leaders of the wider Luhya community? Oloo observes that this could be because Wanga leaders shy away from firebrand politics. He said the Wanga people must borrow a leaf from other Luhya clans such as the Bukusu and Maragoli who are not only aggressive, but will always support and rally behind their leaders.


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