Panic Grips City Hall As DCI Investigate Allegations Of Money Laundering

Heads are expected to roll at City Hall’s procurement and finance departments after investigations were initiated by the Director of Criminal Investigations over allegations of money laundering, a week after former County Executive Member for Education at the Nairobi City County Janet Ouko called for action to be taken. The DCI is also investigating allegations of fraudulent payments to City Hall; sources say the officers involved in the alleged deals are not sitting pretty.

Janet Ouko had, through her lawyers Nasimiyu and Company Advocates, written to DCI’s Mr David K. Birech in a letter dated September 19, 2023, demanding action be taken on File No. 66/2023 (Suspected Fraud in Nairobi County Payments). The rate at which the events are unfolding has caused panic following a tough letter by Mr Birech to the county secretary demanding procurement documents and the names of officers involved.

In a letter dated July 21, 2023 (Ref. DCI/IB/SEC/4/4/16b/VOL.XIV/45) addressed to the County Secretary acting Patrick Analo “Re:FIU Inquiry File No.66/23 Suspected fraud in Nairobi County Government”, the DCI demanded to be furnished with several procurement documents to help him in the investigation of the alleged fraud. The companies under investigation are Larsen Investment Company, Bushara General Supplies Ltd., Tweem Ltd., Future Link Limited, Cloud Mobile Technologies Ltd., AR Pharmaceuticals Ltd., Istanbul Investment Ltd., Ramecon Engineering Ltd., and Brigit West Ltd. 

The letter reads in part “This office is investigating a case of money laundering whereby the Nairobi County Government is alleged to have fraudulently made payments to the companies mentioned above where no services were rendered.”. The DCI is now demanding from the office of the County Secretary several documents to help in the investigations. One of the documents demanded is budget approval for the items that were supplied by the nine companies and requisitions by the user department relating to the mentioned companies.

The county secretary has also been ordered to furnish the DCI with tender documents, including but not limited to tender invitations, preparations and submissions, opening and evaluation, and tender committee meetings. Also required are documents related to the awarding of tender contracts, including contract preparations, details of deliveries made, and inspections, as well as documentation of receipts of goods, acceptance committee reports, and store inventory.

The detectives are also demanding to see all records of LPOs issued to the named nine companies, as well as all payment vouchers with all attachments in respect of the nine companies under investigation. The letter further reads, “In addition to provision of above quoted documents, we further request you to assign officers who have knowledge of the various processes listed above to assist us with information on their roles and also record statements to that effect.”