MPs want ex-NLC staff barred from public office for ‘illegal payouts’

Muhammad Swazuri, Tom Aziz Chavangi

From right: Former National Land Commission Chairman Muhammad Swazuri, Tom Aziz Chavangi and Salome Ludenyi in Anti-Corruption Court in Nairobi on July 9, 2019

Photo credit: Dennis Onsongo | Nation Media Group

Three former officials of the National Lands Commission (NLC) are facing a permanent ban from holding any public office if Members of Parliament adopt a report from the Public Accounts Committee (PAC).

The committee in a report tabled in the National Assembly wants former NLC chairman Muhammad Swazuri, suspended CEO Tom Aziz and former director Salome Munubi barred from holding public office over loss of Sh215 million of taxpayers’ money during their tenure.

Authorising payment

The report tabled by PAC chairman and Ugunja MP Opiyo Wandayi accused the three of engaging in an illegality by authorising payment of Sh215 million as compensation without a harmonised valuation report from both the commission and Ministry of Lands and Physical Planning.

“The payments were made contrary to the directives communicated by the principal secretary, Ministry of Lands and Physical Planning vide a letter dated 1 August, 2018,” reads the PAC report.

Affected property

The payments were made as compensation to persons affected by the Standard Gauge Railway (SGR) project.

According to the report, the letter from the PS stated that any affected property whose value variance between NLC and the Lands ministry figures was below 20 percent was to be paid out by the commission.

Swazuri, 6 others arrested over SGR compensation

The PS, however, stated in the letter to the commission that any variance of between 21 percent to 49 percent was to be revalued by a joint team from the NLC and the ministry with a view to harmonising the values.

Joint team

The PS further stated that any variance of 50 percent and above should be re-inspected by the joint team with a view to carrying out a revaluation. However, this was not adhered to by the NLC.

“Accordingly, the committee recommends that Mr Tom Aziz Chavangi, Prof Muhammad Swazuri and Ms Salome Munubi be barred permanently from holding public office in the Republic of Kenya,” reads the report.

The committee said that the Sh215 million paid out by the commission as compensation was irregular and improper since it was done without harmonized valuations from both the NLC and the ministry.

‘Proper explanation’

“For lack of proper explanation from the [NLC], the committee treats the amount of Sh215 billion as a loss to Kenyan taxpayers,” reads the report.

“The committee holds the accounting officer at the material time, Mr Tom Aziz Chavangi, the then chairman of the National Land Commission, Muhammad Swazuri and the then director of valuation and taxation, Ms Salome Munubi, directly liable for the loss of Sh 215 million,” further reads the report.

Swazuri, 6 others arrested over SGR compensation

The irregular transaction was flagged by Auditor General Nancy Gathungu in her special report of NLC compensation between 2014 and 2017 which shows that the lands commission did not conduct due diligence before making the payment.

The parcels of land and developments which were on the SGR project route were located in Makueni, Nairobi, Mombasa, Kwale and Kilifi counties.