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EACC saves Sh2 billion UoN land from grabber

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The Ethics and Anti-Corruption Commission has rescued a Sh2 billion property belonging to the University of Nairobi from a private developer.

The developer, Abardares Engineering Contractors Limited, had laid claim to the 4.97 acres in Kilimani, Nairobi.

The university’s staff estate stands on the parcel, which is located at the junction of Argwings Kodhek and Galana roads.

An investigation conducted by the anti-graft agency after a complaint by the university in 2015 showed that the developer forged documents to claim the property.

According to the investigation report, Alfred Mwangi and his partner, whose name was withheld because he passed on, are listed as the company’s directors.

It states that Mwangi and his partner forged an allotment letter, deed plan and title deed and proceeded to sue the university to vacate the property. 

“A complaint was received by the commission that the parcel belonging to the university has been grabbed and allocated to the company,” says the report.

Related: State officers face lifestyle audit as EACC moves to recover stolen public wealth

Upon completion of the probe, the commission filed a suit on August 8, 2016, for recovery of the property.

Two months later, on October 15 and 24, Abardares Engineering Contractors Limited filed a defence, where it emerged that the firm had in 2011 instituted a suit in the Environment and Land Court, seeking to kick out the university.

The EACC applied for consolidation of the cases and proceedings taken out in ELC No 955 of 2016 before Justice Samson Okong’o.

Before the case could be concluded, and perhaps on realising he was destined to lose the case,  Mwangi, through Munga Kibanga & Co Advocates, wrote to the commission on March 26, 2018, seeking to have the matter settled out of court.

The commission responded on June 27, 2018, requesting for a formal meeting to agree on the terms of the out of court settlement.

On July 16, 2018, the advocate forwarded the proposal to the commission, stating that his client had agreed to drop the civil case against the university and also forfeit the property.

“Taking into account the fact that cases in courts have a tendency of dragging on for an inordinate long period, the commission being cognisant on the spirit of the Constitution of settling disputes by alternative dispute resolution, agreed to the request,” reads the report.

The parties signed a consent before Justice Okong’o on July 17, 2018, and were given two months to settle the matter out of court.

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The parties, together with representatives of the university and two prosecuting officers from ODPP, met on November 13, 2018, and agreed to resolve the matter out of court.

“Following consultative meetings, the commission, DPP, University of Nairobi and Aberdares Engineering Contractors Limited, the matter was resolved and consent recorded in court bestowing the land as the property of University of Nairobi,” reads the investigations report.

See also: We’ve prevented taxpayers from losing Sh207m to graft – EACC

The report, which the commission’s new chief executive Twalib Mbarak will present to the university management and DPP Noordin Haji tomorrow, has been exclusively obtained by the Star.

The company claimed to have been issued with the title of the land in 1998 for a lease term of 99 years by the officials in the Ministry of Lands.

The document, which the Star has seen, was stamped by the department of lands on September 10, 2009 and allegedly signed by register of titles Mburu Ng’ang’a. Commissioner of Lands Zablon Mabea allegedly witnessed the issuance of the title.

Prior to the issuance of the title, Abardares Engineering Contractors Limited, had allegedly obtained an allotment letter on October 25, 1994, from the government and paid Sh1.3 million.

The document is signed by G.K. Somba-Kivalya on behalf of the commissioner of lands. He had been issued with a deed plan, Number 153382, allegedly by director of surveys on January 23, 1991.

But investigations revealed that none of the documents the developer produced to claim the land was genuine.

The number appearing on the deed plan, for instance, was established to be that of a quarter-acre plot in South C, Nairobi. 

The stamps and signatures appearing on the documents were also established to have all been forged.

The report shows that the land is registered in the name of University College Nairobi Council. The institution acquired the property from Kettles-Roy Tysons for Sh200,000 in 1964.

“The parcel was registered vide an indenture as presentation No. 36, volume N32, Folio 18/4 on July 1, 1964,” the report reads.

According to the commission’s annual report of activities and financial statements for 2017-18, the agency recovered Sh352,185,804 worth of illegally acquired assets during the year.

See also: EACC raids NLC bosses’ homes, offices, recovers Sh17m in cash

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Sordid tale of the bank ‘that would bribe God’

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Bank of Credit and Commerce International. August 1991. [File, Standard]

“This bank would bribe God.” These words of a former employee of the disgraced Bank of Credit and Commerce International (BCCI) sum up one of the most rotten global financial institutions.
BCCI pitched itself as a top bank for the Third World, but its spectacular collapse would reveal a web of transnational corruption and a playground for dictators, drug lords and terrorists.
It was one of the largest banks cutting across 69 countries and its aftermath would cause despair to innocent depositors, including Kenyans.
BCCI, which had $20 billion (Sh2.1 trillion in today’s exchange rate) assets globally, was revealed to have lost more than its entire capital.
The bank was founded in 1972 by the crafty Pakistani banker Agha Hasan Abedi.
He was loved in his homeland for his charitable acts but would go on to break every rule known to God and man.
In 1991, the Bank of England (BoE) froze its assets, citing large-scale fraud running for several years. This would see the bank cease operations in multiple countries. The Luxembourg-based BCCI was 77 per cent owned by the Gulf Emirate of Abu Dhabi.  
BoE investigations had unearthed laundering of drugs money, terrorism financing and the bank boasted of having high-profile customers such as Panama’s former strongman Manual Noriega as customers.
The Standard, quoting “highly placed” sources reported that Abu Dhabi ruler Sheikh Zayed Sultan would act as guarantor to protect the savings of Kenyan depositors.
The bank had five branches countrywide and panic had gripped depositors on the state of their money.
Central Bank of Kenya (CBK) would then move to appoint a manager to oversee the operations of the BCCI operations in Kenya.
It sent statements assuring depositors that their money was safe.
The Standard reported that the Sheikh would be approaching the Kenyan and other regional subsidiaries of the bank to urge them to maintain operations and assure them of his personal support.
It was said that contact between CBK and Abu Dhabi was “likely.”
This came as the British Ambassador to the UAE Graham Burton implored the gulf state to help compensate Britons, and the Indian government also took similar steps.
The collapse of BCCI was, however, not expect to badly hit the Kenyan banking system. This was during the sleazy 1990s when Kenya’s banking system was badly tested. It was the era of high graft and “political banks,” where the institutions fraudulently lent to firms belonging or connected to politicians, who were sometimes also shareholders.
And even though the impact was expected to be minimal, it was projected that a significant number of depositors would transfer funds from Asian and Arab banks to other local institutions.
“Confidence in Arab banking has taken a serious knock,” the “highly placed” source told The Standard.
BCCI didn’t go down without a fight. It accused the British government of a conspiracy to bring down the Pakistani-run bank.  The Sheikh was said to be furious and would later engage in a protracted legal battle with the British.
“It looks to us like a Western plot to eliminate a successful Muslim-run Third World Bank. We know that it often acted unethically. But that is no excuse for putting it out of business, especially as the Sultan of Abu Dhabi had agreed to a restructuring plan,” said a spokesperson for British Asians.
A CBK statement signed by then-Deputy Governor Wanjohi Murithi said it was keenly monitoring affairs of the mother bank and would go to lengths to protect Kenyan depositors.
“In this respect, the CBK has sought and obtained the assurance of the branch’s management that the interests of depositors are not put at risk by the difficulties facing the parent company and that the bank will meet any withdrawal instructions by depositors in the normal course of business,” said Mr Murithi.
CBK added that it had maintained surveillance of the local branch and was satisfied with its solvency and liquidity.
This was meant to stop Kenyans from making panic withdrawals.
For instance, armed policemen would be deployed at the bank’s Nairobi branch on Koinange Street after the bank had announced it would shut its Kenyan operations.
In Britain, thousands of businesses owned by British Asians were on the verge of financial ruin following the closure of BCCI.
Their firms held almost half of the 120,000 bank accounts registered with BCCI in Britain. 
The African Development Bank was also not spared from this mess, with the bulk of its funds deposited and BCCI and stood to lose every coin.
Criminal culture
In Britain, local authorities from Scotland to the Channel Islands are said to have lost over £100 million (Sh15.2 billion in today’s exchange rate).
The biggest puzzle remained how BCCI was allowed by BoE and other monetary regulation authorities globally to reach such levels of fraudulence.
This was despite the bank being under tight watch owing to the conviction of some of its executives on narcotics laundering charges in the US.
Coast politician, the late Shariff Nassir, would claim that five primary schools in Mombasa lost nearly Sh1 million and appealed to then Education Minister George Saitoti to help recover the savings. Then BoE Governor Robin Leigh-Pemberton condemned it as so deeply immersed in fraud that rescue or recovery – at least in Britain – was out of the question.
“The culture of the bank is criminal,” he said. The bank was revealed to have targeted the Third World and had created several “institutional devices” to promote its operations in developing countries.
These included the Third World Foundation for Social and Economic Studies, a British-registered charity.
“It allowed it to cultivate high-level contacts among international statesmen,” reported The Observer, a British newspaper.
BCCI also arranged an annual Third World lecture and a Third World prize endowment fund of about $10 million (Sh1 billion in today’s exchange rate).
Winners of the annual prize had included Nelson Mandela (1985), sir Bob Geldof (1986) and Archbishop Desmond Tutu (1989).
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Tracking and monitoring motor vehicles is not new to Kenyans. Competition to install affordable tracking devices is fierce but essential for fleet managers who receive reports online and track vehicles from the comfort of their desk.

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Agricultural Development Corporation Chief Accountant Gerald Karuga on the Spot Over Fraud –

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Gerald Karuga, the acting chief accountant at the Agricultural Development Corporation (ADC), is on the spot over fraud in land dealings.

ADC was established in 1965 through an Act of Parliament Cap 346 to facilitate the land transfer programme from European settlers to locals after Kenya gained independence.

Karuga is under fire for allegedly aiding a former powerful permanent secretary in the KANU era Benjamin Kipkulei to deprive ADC beneficiaries of their land in Naivasha.

Kahawa Tungu understands that the aggrieved parties continue to protest the injustice and are now asking the Ethics and Anti-corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) to probe Karuga.

A source who spoke to Weekly Citizen publication revealed that Managing Director Mohammed Dulle is also involved in the mess at ADC.

Read: Ministry of Agriculture Apologizes After Sending Out Tweets Portraying the President in bad light

Dulle is accused of sidelining a section of staffers in the parastatal.

The sources at ADC intimated that Karuga has been placed strategically at ADC to safeguard interests of many people who acquired the corporations’ land as “donations” from former President Daniel Arap Moi.

Despite working at ADC for many years Karuga has never been transferred, a trend that has raised eyebrows.

“Karuga has worked here for more than 30 years and unlike other senior officers in other parastatals who are transferred after promotion or moved to different ministries, for him, he has stuck here for all these years and we highly suspect that he is aiding people who were dished out with big chunks of land belonging to the corporation in different parts of the country,” said the source.

In the case of Karuga safeguarding Kipkulei’s interests, workers at the parastatals and the victims who claim to have lost their land in Naivasha revealed that during the Moi regime some senior officials used dubious means to register people as beneficiaries of land without their knowledge and later on colluded with rogue land officials at the Ministry of Lands to acquire title deeds in their names instead of those of the benefactors.

Read Also: Galana Kulalu Irrigation Scheme To Undergo Viability Test Before Being Privatised

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“We have information that Karuga has benefitted much from Kipkulei through helping him and this can be proved by the fact that since the matter of the Naivasha land began, he has been seen changing and buying high-end vehicles that many people of his rank in government can’t afford to buy or maintain,” the source added.

“He is even building a big apartment for rent in Ruiru town.”

The wealthy officer is valued at over Sh1.5 billion in prime properties and real estate.

Last month, more than 100 squatters caused scenes in Naivasha after raiding a private firm owned by Kipkulei.

The squatters, who claimed to have lived on the land for more than 40 years, were protesting take over of the land by a private developer who had allegedly bought the land from the former PS.

They pulled down a three-kilometre fence that the private developed had erected.

The squatters claimed that the former PS had not informed them that he had sold the land and that the developer was spraying harmful chemicals on the grass affecting their livestock and homes built on a section of the land.

Read Also: DP Ruto Wants NCPB And Other Agricultural Bodies Merged For Efficiency

Naivasha Deputy County Commissioner Kisilu Mutua later issued a statement warning the squatters against encroaching on Kipkuleir’s land.

“They are illegally invading private land. We shall not allow the rule of the jungle to take root,” warned Mutua.

Meanwhile, a parliamentary committee recently demanded to know identities of 10 faceless people who grabbed 30,350 acres of land belonging to the parastatal, exposing the rot at the corporation.

ADC Chairman Nick Salat, who doubles up as the KANU party Secretary-General, denied knowledge of the individuals and has asked DCI to probe the matter.

Email your news TIPS to [email protected] or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

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William Ruto eyes Raila Odinga Nyanza backyard

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Deputy President William Ruto will next month take his ‘hustler nation’ campaigns to his main rival, ODM leader Raila Odinga’s Nyanza backyard, in an escalation of the 2022 General Election competition.

Acrimonious fall-out

Development agenda

Won’t bear fruit

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