MP’s firm among those cited for suspicious deals with roads agencies

Mwingi North MP Paul Musyimi Nzengu is among individuals whose companies have been cited for suspicious financial dealings with roads agencies.

A Financial Reporting Centre (FRC) document puts the Kenya Rural Roads Authority (Kerra) and Kenya National Highways Authority (Kenha) at the centre of a syndicate involving questionable payments to the companies, some of which are associated with their staff.

A Suspicious Transaction Reporting (STR) document by the FRC shows that although the nature of work done for the two road agencies remains a mystery, once the payments from the government hit the bank accounts of the companies, they are followed by suspicious huge cash withdrawals.

What makes the withdrawals suspicious, according to the FRC document, is that they are usually done in the region of Sh900,000 and below to dodge the reporting threshold of Sh1 million provided for in the Proceeds of Crime and Anti-Money Laundering Act (Pocamla).

The FRC document shows that Mr Nzengu and Ms Monica Mutwa Lisi are the directors of Malili Construction and Engineering Works Limited.

A Nation search at the registrar of companies done on April 20, 2022 shows that the company had Mr Nzengu and Ms Lisi as directors, with the shareholding of 900 and 100 respectively.

The company’s account number was opened on August 8, 2018. The document shows that two months after the account was opened, on October 26, 2020, Malili Construction and Engineering Works Limited received Sh30 million from Kenya Slum Upgrading Fund.

Although the FRC documents list Mr Nzengu as the sole director of another company, Planbee Contractors and General Suppliers Limited, that does business with Kerra, our search at the registrar of companies lists Ms Hellen Makasi Muthengi as the sole shareholder with 800 shares.

The company received Sh2 million in payments from Kerra- Kitui regional office on August 7, 2022, which was followed by large cash withdrawals and bank transfers to Malili Construction account.

Mr Nzengu did not respond to our calls and text messages to his known mobile number.

Barkutwo Investments Limited that opened a bank account in Kericho on February 11, 2013 is another company that has received payments from Kerra and Kenha.

The FRC document lists Mr Lucy Jepchieng Chebon and Mr Dickson Boit Kipkenei as the directors of the company. However, details at the registrar of companies show that as at April 20, 2022, Rerimoi Chebon was the sole director of the company that received Sh294.4 million from both Kerra and Kenha.

Ms Lucy Jepchieng Chebon has also been listed by FRC as the director of Taimon Company Limited, which also receives payments from Kerra.

She shares her last name with Mr Christopher Chepkuto Chebon “who was reported via STR2018-240”, as an employee at Kerra.

Brildel International Limited is another company that has benefited from Kerra funds.

It opened a bank account on October 6, 2016 and is under the directorship of Mr Brian Kioko Kavila and Ms Laura Nyokabi Ngenda.

The account has been receiving funds from Kerra- Kitui since March 2020 followed by rapid movements of funds to unknown destinations.

By the time the FRC document was being compiled, the company had received Sh15.6 million.

Maku Logistics Services and Supplies Limited is also another company that has benefited from Kerra.  It opened its bank account on December 29, 2020 under the directorship of Ms Caroline Nduku Mutinda and Ms Jackleen Mwinza Mutinda.

However, details show that Mr Onesmus Mutinda Lamu is the mandated signatory to operate the account alone. On January 14, 2021, the account received Sh4.7 million from Kerra-Machakos with the purpose being road works for Kyanda Primary School.

The funds were utilised through cash withdrawals of Sh3.5 million and Sh1.2 million transferred to Mbaku Construction Company Limited, which is owned by Mr Onesmus Mutinda Lamu.