Kebs name used to extort bribes in chicken scam, says MD

Electoral and examination officials fraudulently used the Kenya Bureau of Standards’ (Kebs) name to extract millions of shillings in bribes from a British printing firm, the agency has said.

Kebs managing director Charles Ongwae said an internal investigation had revealed that an official from the standards body, whom he declined to name, was involved in the procurement of election materials but did not receive any bribes to help Smith & Ouzman (S&O) win security printing contracts.

Mr Ongwae defended his agency ahead of Thursday’s sentencing in a UK court of S&O executives who were last month convicted of corruption and payment of bribes to public officials in foreign lands.

The bribes amounting to more than Sh50 million and codenamed ‘chicken’ to conceal payment to officials of the defunct Interim Independent Electoral Commission (IIEC), the Kenya National Examinations Council (Knec) and Kebs were paid in a span of more than two years.

“It is possible that third parties used Kebs name to extract bribes,” Mr Ongwae said in an interview with Business Daily.

“The Kebs officer participated as an external observer, providing guidance and technical support and did not participate in decision making of the tender committee. Kebs neither solicited nor received a bribe,” said Mr Ongwae.

London’s Southwark Crown Court in December convicted Christopher Smith, a former S&O chairman, and his son Nick Smith (sales and marketing director) for making corrupt payments to win tenders at the IIEC and the Knec.

Judge Daniel Pearce-Higgins, who presided over the corruption case, will sentence Mr Smith and his son following their conviction by the court last December.

READ: How UK sleuths unearthed Kenya ‘Chickengate’ scandal

Serious Fraud Office’s prosecution documents show that the unnamed Kebs officer received Sh2.92 million in kickbacks to certify S&O printing works as having met the required quality standards.

The Kebs official was reportedly paid ‘chicken’ at the rate of Sh0.20 per ballot paper following S&O’s successful bid to print 14.6 million ballot papers for the 2010 Constitution referendum, according to documents filed in the London court.

“Kebs [Kenyan Bureau of Standards] are key guys so let’s shelve theirs to Sh0.20 and any other person who will be in the technical committee,” said S&O Kenyan agent Trevy James Oyombra in an email to Mr Smith.

The prosecution documents show that election officials, including IEBC chairman Ahmed Issack Hassan, received a bribe at a price of Sh0.55 per ballot paper printed while Mr Oyombra had his kickback paid at the rate of Sh0.10 per ballot paper.

Prosecutor Mark Bryant-Heron said in court filings that election and Kebs officials ate ‘chicken’ totalling £108,203.82 (Sh15.07 million).

“The prosecution’s case is that bribes intended for officials at the IIEC and the Kenyan Bureau of Standards (“KEBS”) totaled £108,203.82,” Mr Bryant-Heron told the court.

The crimes, which were committed between June 2009 and December 2010, saw Kenyan electoral, examination and Kebs officials pocket a total of Sh50 million from printing costs that were inflated as high as 38 per cent to cater for the kickbacks.

Kioko Mang’eli was the managing director at Kebs during the period under review.

Kenyan officials named in the ‘chicken’ scandal include Energy secretary Davis Chirchir (who served as commissioner at the IIEC), James Oswago (ex-CEO), former Judiciary registrar Gladys Boss Shollei (deputy CEO) and former Knec boss Paul Wasanga.

Others shown in the court documents as having been members of the ‘chicken-eating gang’ were Kennedy Nyaundi (IIEC commissioner), Kenneth Karani (senior procurement officer), an unnamed finance director and Joseph Khamis Dena, a former Electoral Commission of Kenya commissioner.

The Knec executives who reportedly ate chicken include deputy CEO Mwai Nyaga, Geoffrey Gitogo (ICT manager), Ephraim Wanderi (computer manager) and Michael Ndua (the principal supplies officer).

Integrity provisions

The Ethics and Anti-Corruption Commission (EACC) and the Director of Public Prosecutions are yet to prosecute any Kenyan named in the scandal since christened ‘chickengate’.

Most have continued to hold public offices contrary to the integrity provisions of Chapter Six of the Constitution.

The EACC said in December that it will use the guilty judgment delivered against the two executives of S&O to bolster its investigations and charge the Kenyans named in the scandal.