EACC arrests KPA finance manager over Sh214m scandal

What you need to know:

  • The arrest happened following a go-ahead by Director of Public Prosecution Noordin Haji.
  • DPP Haji said Mr Nyoike used his office to improperly confer the benefit of Sh214 million to NCL.
  • Mr Nyoike is also accused of not revealing that his wife and brother worked for Nyali Capital.

Kenya Ports Authority (KPA) Finance Manager Patrick Nyoike has been arrested over a Sh214 million scandal involving Nyali Capital Limited (NCL), a company he has interest in.

Mr Nyoike was arrested Sunday alongside two other suspects who are linked to the siphoning of the money from KPA to the company owned by his wife.

The suspects were arrested by Ethics and Anti-Corruption Commission (EACC) detectives in Mombasa.

In a brief statement sent to the Nation, EACC confirmed that Mr Nyoike and the other two suspects are being held at Central Police Station in Mombasa.

DPP'S NOD

The arrest happened following a go-ahead by Director of Public Prosecution (DPP) Noordin Haji.

Mr Haji recommended the arrest of Mr Nyoike, KPA clerical officer Isaac Obunga, Jacinta Wambugu who is the Nyali Capital Limited (NCL) general manager, Mr Nyoike’s wife and two other directors of Nyali Capital Alfred Hinga and Peter Ndichu.

Mr Hinga is the brother of Mr Nyoike, who is accused of being at the centre of irregularly awarding Nyali Capital the millions of shillings between 2013 and 2017.

In a statement, DPP Haji said Mr Nyoike used his office to improperly confer the benefit of Sh214 million to NCL by irregularly facilitating the definition of the company, which was not one of KPA’s suppliers, as a vendor in the parastatal’s portal without authority.

“It is therefore, clear from the evidence that Patrick Wambugu Nyoike abused his office by facilitating Nyali Capital Limited to finance the KPA suppliers and to receive payments directly from KPA,” said Mr Haji in the statement.

CONFLICT OF INTEREST

Mr Nyoike is also accused of not revealing that his wife and brother worked for Nyali Capital, which amounts to a conflict of interest.

The DPP added that there was not contractual relationship between KPA and Nyali Capital, yet there were letters by Mr Obunga, who irregularly defined the company as a vendor in the KPA portal.

Sources from EACC revealed that all the irregular payments to Nyali Capital were being processed by Mr Obunga.

“In effect, the duo turned KPA to a debt collector for monies loaned by NCL (Nyali Capital) to the authority suppliers,” said our source.

CHARGES

The suspects will face four charges, among them conspiracy to commit an offence of corruption, abuse of office, failure to disclose a private interest and dealing with suspect property.

The charges will serve as a blow to Mr Nyoike who has expressed interest the the KPA managing director’s position following the resignation of his former boss Daniel Manduku.

Mr Nyoike is among senior officials at KPA who are eyeing the authority’s hot seat.

Mr Manduku resigned in March and was replaced by the agency’s General Manager for Engineering, Mr Rashid Salim, in an acting capacity.

Mr Nyoike is among individuals who were reported to have “high chances’” of taking the mantle at KPA.

Welcome!

You're all set to enjoy unlimited Prime content.