Kinisu still listed as director of company linked to NYS payout

Embattled Ethics and Anti-Corruption Commission (EACC) chairman Philip Kinisu is still listed as a director of a company at the centre of the controversy over its transactions with the National Youth Service (NYS).

According to a search at the registrar of companies, Mr Philip Kundu Buyai Kinisu was listed as one of the directors of Esaki Limited as at Wednesday.

While addressing the claims of conflict of interest at a media briefing on Monday, Mr Kinisu said he no longer served as a director of the company. He said in an interview Wednesday the registrar may have failed to update the firm’s records.

“GoK (Government of Kenya) records not updated perhaps?” he paused in a text message.

His wife, Ms Mary Wanjiru Gatimu, is also listed as a director of the company.

The documents show that the EACC chairman has a 75 per cent shareholding in the family-owned company while Ms Gatimu owns the rest of the shares.

Mr Kinisu is also listed as a director of property housing and real estate development company Kose Investments with an 83.33 per cent shareholding.

“I have been a director in it (Esaki) from inception until April 19, 2016 when I ceased to be a director on account of my commitments at EACC,” he said on Monday.

READ: EACC boss admits another Sh246m payment

The records at the registrar show that the firm was established on January 7, 2000 and initially registered as Esaki Communications Limited.

In 2008, a second company registered itself under the same name but it was wound up in 2013 after it was realised at the registry that there was already another firm under the same name.

Esaki was paid Sh35,417,209 to supply borehole materials to the NYS between October 2014 and November 2015.

While giving a history of his involvement, Mr Kinisu said the firm started out as a cyber café business before moving on to its current line of trading.

He said the contracts the company received resulted from either open tenders or invitations for quotations as one of prequalified suppliers and that he would not be forced to resign over unsubstantiated claims.

“All contracts between the company and NYS were won and performed prior to my appointment as chairman to the EACC,” said Mr Kinisu.

An independent team has been formed to investigate the allegations linking the corruption watchdog’s chairman to the NYS scam. Documents seen by the Business Daily show the EACC  chief executive wrote to the Treasury requesting information on payments concerning Esaki.

The documents show that between March last year and last month Esaki Limited received Sh246 million payment from the government, with Sh89.9 million wired through the government procurement system as late as June 16.