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National Museums ex-boss, 3 others arrested over Sh490m fraud

Integrity Centre in Nairobi, the headquarters of the Ethics and Anti-Corruption Commission (EACC). (Photo: File)

By Barack Oduor | 15 Apr 2024

EACC says NMK officials embezzled public funds through irregular payments of salaries to ghost employees.

The anti-corruption authority has arrested four people over the embezzlement of Sh490 million from the National Museums of Kenya (NMK), among them former Director-General Mzalendo Nyaga Kibunjia.

The offence was committed between the financial years 2016–2016 and 2021–2022, the Ethics and Anti-Corruption Commission (EACC) said in a statement on Monday.

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The EACC said the other suspects were ICT Officer Oliver Okinyi Rabuor and accountant Wycliffe Odhiambo Ongata, both of them in the payroll section, and a person named Oscar Mwaura, whom it described as a "ghost employee recruiter."

The commission said the fifth suspect—director of human resources and administration Stanvas Ongalo Opijah—was still at large but that it had directed him to immediately report to its offices.

"Investigations commenced after the commission received a report that the NMK officials were embezzling public funds through irregular payments of salaries to ghost employees, which were later transferred to senior officials," said Abdi Mohamud, the EACC's deputy chief executive.

Upon the conclusion of the investigations, the EACC submitted the file to the Director of Public Prosecutions (DPP), who concurred with its recommendation to charge the suspects.

The anti-graft body announced that the suspects hatched a fraudulent scheme to make salary payments to ghost workers for more than five years. The money would subsequently be transferred to senior officials.

"The suspects are detained at the EACC Integrity Centre Police Station pending arraignment tomorrow. The commission will also recover the amount," it said.

The four will be charged with abuse of office Contrary to Section 46, as read with Section 48(1) of the Anti-Corruption and Economic Crimes Act No. 3 of 2003.

Additionally, they will be charged with unlawful acquisition of public property contrary to Section 450(a) as read with Section 48(1) of the Anti-Corruption and Economic Crimes Act No. 3 of 2003, and acquisition of proceeds of crime contrary to Section 4 as read with Section 16 of the Proceeds of Crime and Anti-Money Laundering Act No. 51 of 2012.

They will also face charges of money laundering and financial misconduct.

Meanwhile, the EACC has also ordered former Murang'a Governor Mwangi wa Iria, his wife Jane Waigwe Kimani, and six other suspects to immediately report to its Integrity Centre headquarters in Nairobi.

They are to be processed in relation to allegations of procurement irregularities and conflict of interest in the award of Sh140 million publicity tenders during the financial years 2014-2015 and 2015-2016.

"Suspects required to appear on Tuesday, 16 April, 2024, 8:00 am, without fail," the commission said.