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    Kenya Ports Authority on EACC Radar over KSh 2bn worth Criminal Activities

    Fred
    By Fred Obura
    - January 29, 2025
    - January 29, 2025
    Kenya Business newsPublic Policy
    Kenya Ports Authority on EACC Radar over KSh 2bn worth Criminal Activities

    The Kenya Ports Authority (KPA) is under investigation for economic crimes whose value the Ethics and Anti-Corruption Commission (EACC) puts above KSh 2 billion.

    • •The cases involve the misappropriation of public funds for the compensation of fishermen affected by the LAPSSET project, procurement irregularities in the award of tenders, and conflict of interest by senior officials.
    • •The allegations of public funds misappropriation for fishermen affected by LAPSSET involves KSh 1.7 billion while another case is an irregular award to Miller & Company Advocates for KSh 650 million for the provision of legal services.

    According to the anti-graft body’s report for 2023/24, it traced KES 16 billion in illegally acquired and unexplained assets, recovered KES 2.9 billion in corruptly acquired assets; and averted loss of Ksh 2.9 billion of public funds through investigations.

    EACC suspects that KPA lost more than KSh 230 million in the irregular award of tenders to Logitech International for provision of portable water at Lamu Port. According to the anti-graft body, another KSh 194.2 million could also have been lost in conflict of interest when more than 10 companies associated with senior officials won tenders.

    Consolidated Bank of Kenya, the defunct National Health Insurance Fund (NHIF), Kenyatta National Hospital, Kenya National Highways Authority, Kenya Power, Geothermal Development Corporation, Kenya Broadcasting Corporation are also among state corporations with questionable deals under active investigation.

    KBC is under the EACC radar over an irregular engagement in the FY 2005/2006 and the termination of a joint venture with Channel 2 Group Corporation in 2009 for the provision of programming content that had led to an arbitral claim of USD 150 million in the year 2012. 

    The anti-graft body says it finalized and forwarded 126 investigation files on corruption and economic crimes to the Director of Public Prosecutions for review during the year. It also finalized a further 56 investigation files on violations of Chapter Six of the Constitution and Leadership and Integrity Act with various recommendations. The Commission recorded 12 convictions on cases of corruption and unethical conduct, translating to a conviction rate of only 26.7 percent. 

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