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DCI and EACC To Investigate Fraud at Judiciary 




The  Director of Public Prosecutions (DPP), Noordin Haji has directed the Directorate of Criminal Investigations and the Ethics and Anti- Corruption Commission to investigate alleged mismanagement of public funds at the Judiciary during the 2016/2017 financial year.

The investigation will also spread to the final internal audit report on revenue management at Milimani Law Courts for the period between January 2016 and December 2017 dated 12th July 2018.

In a press statement, the DPP said the audit report had focused on the Environment, Lands Court Registry and High Court registries touching on commercial and tax, civil, and family issues, establishing that fraudulent activities in revenue management led to the loss of over sh. 36 million.

Haji said the fraudulent activities came to his knowledge through reports from a whistle blower and the media, prompting him to direct the investigating agencies to conduct investigations on the income tax house conversion report dated 18th February 2015.

“In this report the Chief Risk and Internal Auditor had observed fraud in variation of the contract, as well as lack of approval for variation and unavailability of instructions to the contractor,” said Haji.

He noted that the contract was varied by Sh. 288, 566,840.91 which is 41.45 percent of the initial contract of which the threshold for variation is 15 percent which is contrary to regulations of the Public Procurement and Disposal Regulations Act 2006.

The DPP said the Auditor also discovered that the approval had no documentation from the tender committee, whereas the variation orders were not supported by site instructions to the contractor or signed by the project manager, costed and signed by the quantity surveyor.

Mr. Haji also wants the agencies to investigate the medical Insurance cover report approved by Judiciary Tender Committee renewing the contract with M/S Jubilee Insurance Company of Kenya Ltd at a sum of Ksh. 808, 056,889 which had a variation of 24.64 percent of the original contract, which was later canceled on 3rd October 2016.

The report shows that on 10th September 2015, the Judiciary entered into a contract with M/s Jubilee Insurance Company of Kenya Ltd for the provision of group medical insurance a contract sum of Sh. 648, 297,521 for a period of 12 months with effect from 1st September 2015.

Other areas under investigation include a security contract with M/S Bedrock Security Services Limited and M/s Lavington Security Limited for provision of security services.

By Bernadette Khaduli

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