Former Tourism CS Najib Balala arrested on graft charges

The Ethics and Anti-Corruption Commission (EACC) has arrested former Tourism Cabinet Secretary Najib Balala.

EACC said the former CS and two others are set to be arraigned today to face 10 charges relating to the construction of the Sh8.5bn Utalii College, Kilifi campus.

"After completion of the investigations, the commission forwarded the file to the Director of Public Prosecutions (DPP) who concurred with the recommendations of the EACC to charge the former Ministry of Tourism officials, "EACC spokesman Eric Ngumbi said.

Ngumbi confirmed Balala was arrested on Thursday and was in custody at the EACC's Integrity Centre Police Station along with two others before Friday's arraignment to face corruption and economic crime charges.

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The other two are Ms Leah Gwiyo, former Tourism PS and Joseph Odero, Managing Partner West Consult Engineers.

"The three are out of 16 suspects supposed to be charged in this particular case that involves procurement fraud and irregular payment of Sh18.5 billion of public funds. They will be flown to Malindi to face charges there after the prosecution approved our recommendations," Ngumbi said.

“Investigations were undertaken by the commission regarding the irregular payment of Sh8.5 billion by the Tourism Fund out of which Sh4 billion was paid to Baseline Architects Ltd for consultancy services for the proposed Ronald Ngala Utalii College in Vipingo, Kilifi county.”

According to the EACC, the construction of the college in Vipingo was approved at a cost of Sh1.948 billion in a cabinet memo signed by Balala on May 22, 2007 and his finance counterpart on August 20, 2007.

EACC's probe revealed how some private consultants were contracted by the tourism fund to come up with architectural designs and drawings of the college and to supervise the main contractor.

The drawings and designs were approved for Sh8.6 billion.

The tender for the construction of the Kenya Utalii College's coast branch, later renamed Ronald Ngala Utalii College, was awarded in May 2013 at a cost of Sh8.9 billion, compared to the approved cabinet amount of Sh1.948 billion.

According to the EACC, the individuals conspired to defraud the public by approving payments despite knowing there were insufficient resources in the budget.