The Nation (Nairobi)

Kenya: Musalia Says He Was Kept in the Dark over Sh283 Million Deal

10 March 2010


Nairobi — Deputy Prime Minister Musalia Mudavadi said he was kept in the dark throughout the transaction of the Sh283 million cemetery land scandal.

During a four-hour interview at his Jogoo House offices with Kenya Anti-Corruption Commission detectives on Wednesday, Mr Mudavadi accused suspended Local Government permanent secretary Sammy Kirui of withholding information regarding the fraudulent transaction.

The detectives arrived at the deputy PM's office at 10am and left shortly after 2pm after recording a five page statement from Mr Mudavadi.

Present during the interview was Mr Mudavadi's lawyer, Mr Fred Ojiambo, and the communications director in his office, Mr Kibisu Kabatesi.

In the statement, a copy of which was seen by the Nation, Mr Mudavadi denied any dealings with a Mr Newton Osiemo, the man a KACC report claims represented Mr Mudavadi and Mr Kirui's interests in the land deal and pocketed Sh59 million of the total amount on their behalf.

Mr Mudavadi told the detectives that whereas he had previously met Mr Osiemo at political-cum-social functions, he had never had any business dealings with him.

"As to my knowledge of one Newton Osiemo, I wish to state that yes, I know him but he has never been my business partner and neither have I associated with him in any matter. I have never asked him to represent me or my interests anywhere," Mr Mudavadi said.

He further denied having any joint business investments with Mr Osiemo, saying his last contact with him was sometime early last year when he (Mr Osiemo) called to convey his condolences upon the demise of Mr Mudavadi's sister.

Scanty summary

He accused Mr Kirui and some officers at the Local Government ministry of deliberately withholding information regarding the cemetery land transaction from him.

"In the course of their appearances before the departmental committee, the permanent secretary would provide me with a scanty verbal summary of the proceedings on an ad hoc basis. However, the permanent secretary has never to date provided me with any written brief," the minister stated.

He was referring to the several meetings held between top ministry and City Hall officials with the parliamentary committee on local government to discuss the cemetery transaction.

"I got a distinct impression that there was a deliberate concealment of information by the permanent secretary and other officers within my ministry in not providing any formal or written brief," he added.

"In every instance, such briefings were at my insistence. This was quite frustrating in my effort to try to understand the full extent of the matter," the deputy PM further wrote.

Mr Mudavadi detailed the steps he took when he received the audit report on the cemetery scandal from the Controller and Auditor General, including writing to Mr Kirui on February 17, asking him to respond to specific concerns against him.

He also wrote to the Prime Minister, telling him that he had forwarded the report to KACC and asked them to expedite investigations.

He said he received Mr Kirui's reply last Tuesday, although it was dated March 5. In his response, Mr Kirui maintained that he had briefed Mr Mudavadi at all times.

Mr Mudavadi also denied any links with a company the anti-graft report alleges bought property in Nairobi's Karen area.

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