Following credible intelligence, the DCI’s Economic and Commercial Crimes Unit detectives commenced investigations into allegations of financial impropriety and abuse office at the Kenya National Trading Corporation (KNTC).
Investigations have revealed that Pamela Nduku Mutua, the managing director and accounting officer of KNTC, and Amos Juma Sikuku, the supply chain and logistics manager failed in their mandate to ensure importation and distribution of rice was conducted in line with the provisions of the Public Procurement and Asset Disposal Act, 2015.
It has been established that in September 2022, KNTC was tasked to import and distribute essential commodities including rice as a measure to bring down the cost of living in the country hence the KNTC board approved the management’s concept note that was to guide the importation and subsequent distribution of the said rice.
Whereas the board settled on the Specially Permitted Procurement Procedure (SPPP) under sections 114A and 107 of the PPAD Act, 2015, this was violated and instead direct procurement was undertaken which was a blatant violation of the law.
Other conditions approved in the concept note included the use of credit financing by a financial institution in the subject of procurement and approval by the Attorney General for procurement of value above 5 billion. These conditions were also found to have been violated when the management went ahead and engaged M/S Purma Holdings Ltd by way of a consignment contract which was not provided for in the concept note.
KNTC management further went ahead and rented private container freight stations as opposed to the use of existing government storage facilities which led to increased operation costs and loss of public funds.
In line with the PPAD Act, 2015 which places responsibility of compliance on the accounting officer, Pamela Nduku Mutua was charged with five counts of Willful Failure to Comply with Procurement Regulations whereas Amos Juma Sikuku was charged with abuse of office. Sikuku is accused of having issued a prejudicial professional opinion in a tender for bulk commodities procurement, allegedly compromising the interests and rights of the Republic hence costing taxpayers billions of shillings.
Both suspects pleaded not guilty to the charges before the Anti-Corruption Court Milimani. Pamela Nduku Mutua was granted bail of KSh 1.5 Million or a bond of Ksh 5 million with one surety of the same amount while Amos Juma Sikuku was granted bail of Ksh 500,000 or a bond of Ksh 1 million. The two were further ordered to deposit their passports with the court and warned not to interfere with prosecution witnesses.
