Mwenda Njoka
17 August 2004
Nairobi — Investigations have been opened into graft allegations against the man chosen to become deputy head of Kenya's anti-corruption commission.
The CID are looking into audit findings, revealed exclusively by the Nation last week, that Dr Julius Rotich was involved in irregular sale of maize when he was chief executive of the National Cereals and Produce Board.
Agriculture minister Kipruto arap Kirwa said yesterday the findings of a 70-page report by the Inspectorate of State Corporations, which accused Dr Rotich of "management and financial improprieties" had been passed on to CID for investigations and possible prosecution.
"Those found to have committed offences of a criminal nature will definitely face the full wrath of the law and no one will be any special treatment," said Mr Kirwa, under whose ministry the NCPB falls.
Dr Rotich was recently appointed deputy director for finance and administration at the anti-corruption body, only a year after leaving the NCPB.
It has since emerged that two years ago he oversaw the the sale of 200,000 metric tones of maize (about two million bags) from the country's strategic reserves, which was not replenished quickly enough, undermining the country's ability to fight the current famine.
The report found that the maize was sold at less than the prevailing market price to companies without being tendered, causing a loss of about Sh4 billion.
Auditors have recommended that Dr Rotich, a former board General Manager, Mr Kiprono Kittony, and several other former and current employees be made to repay the Sh4 billion lost through their negligence.
Yesterday Mr Kirwa said there would be no sacred cows his ministry or the firms supervised by his office.
Like the cereals board report, he said, another report on the the Kenya Seed Company had also been given to CID for further action.
The seed firm probe dwells on the tenure of Mr Nathaniel Tum during as managing director and also suggests that he be surcharged for losses arising from decisions he made.
"I have directed that where cases of surcharge were recommended by the Inspectorate of State Corporations, if proven, the new board of directors at NCPB should take action together with the relevant government bodies," Mr Kirwa said.
The sale of about two million bags by board two years ago to Zimbabwe was cast by auditors as irregular.
The revelations raised questions about Dr Rotich's suitability for leadership of the body charged with fighting corruption.
Dr Rotich's appointment to KACC was ratified by Parliament about a fortnight ago together with that of Mr Justice Aaron Ringera, who will be heading the anti-corruption body.
However, in an interview with the Nation last week, Dr Rotich defended himself against accusations contained in the investigations report of the Inspectorate of State Corporations.
"Everything I did during the period I was the managing director and secretary to the board of directors of NCPB was above board. I obtained the relevant approvals from either the Office of the President or our parent ministry," he said.
Efforts to get comments from Mr Kittony were fruitless.
He explained that before the maize was sold, a Food Security Committee meeting had recommended that NCPB off-load the maize in the international market to raise money to pay farmers.
The committee comprised of the then Head of Public Service, Dr Sally Kosgei, Dr Rotich, the then Agriculture Minister Bonaya Godana and his then PS Prof Shem Migoti Adhala, the then Finance Minister Mr Chris Obure and his then PS Mr Mwaghazi Mwachofi.
Yesterday Dr Rotich claimed that when he became the MD of the parastatal, it was teetering on the verge of financial collapse.
"Me and my team we managed to turn around NCPB from a perpetual overdraft of over a billion shillings to situation where we were able to pay our bills and meet some of our financial obligations," said Dr Rotich.
Asked why the Inspectorate of State Corporations would come up with a report that accuses him and his team of 'serious managerial improprieties', the former MD said: "I have no idea. What I can tell you, and God is my witness, is that I never engaged in any malpractices at all!"
Dr Rotich had previously served in the same position in the defunct Kenya Anti-Corruption Authority (KACA).
When KACA was dissolved by a court order, Dr Rotich was appointed managing director of the board in February 2002, replacing Major (Rtd) Wilson Koitaba.
Mr Kirwa suspended him together with Mr Kittony from the board in August last year. Mr Kosgey Tirop replaced Dr Rotich.
Meanwhile, Mr Kirwa has defended his ministry against claims that favouritism may have played a key role in the award of tender for importation of famine relief maize.
He said that the tender committee strictly adhered to government procurement rules.
The six companies that won in the tenders to import 2 million bags of maize were: Hala General Trading (incorporated in Dubai), Unitrade Limited and Versatrade International (both registered in South Africa) and Euroworld Commodities Limited (registered in the United Kingdom).
The Kenyan firms were Erad Supplies and General Contracts Limited (registered in June 1998), Purma Holdings Limited (registered February 1996) and Freba Investments a sole proprietorship registered in August 1997).
The minister explained that anyone could import grains so long as they were willing to pay the requisite duty.
"Why we went into tendering on this particular case is because the government had made a decision to waive duty so as to make the maize cheaper because of the famine situation," said Mr Kirwa.
The duty waiver would expire at the end of September or when the 4 million bags of maize have been delivered.
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