Oracle executives face asset seizures in auditor general software case

Several executives of software companies Oracle and Open Systems Integration (OSI) are facing possible assets seizure after being found to have a case to answer on accusations of influencing the Office of the Auditor-General in winning a controversial software contract.

Director of Public Prosecutions Keriako Tobiko said that some executives gave kickbacks to officials at the auditor-general’s office while others shared the loot.

Oracle is a partner of OSI— the company that landed a contract to supply the Audit Vault software at a cost of Sh100 million.

“There is sufficient evidence to charge Charles Gichobi (sales executive Oracle), with acquisition of proceeds of crime (Sh500,000), contrary to section 16(I) (a) of POCAMLA (Proceeds of Crime and Anti-money Laundering Act),” Mr Tobiko said in a statement.

Mr Gichobi received the loot from the deputy auditor-general in charge of Corporate Services Stephen Kinuthia.

Mr Kinuthia is also facing corruption charges linking him to receipt of Sh27 million from the proceeds of acquisition of Audit Vault from OSI Kenya.

Other OSI Kenya executives charged with economic crimes include the company’s managing director Maina Kamau and his two directors (Ephantus Kairu) and Sylvester Kiplagat.

“I have therefore directed that prosecution should ensue accordingly. I have also directed that copies of the duplicate inquiry file be forwarded to the Asset Recovery Agency (ARA) and the Kenya Revenue Authority (KRA) for appropriate action in terms of their respective legal mandates,” said Mr Tobiko.

The public prosecutor, however, cleared Auditor-General Edward Ouko of any wrong doing following recommendations by the anti-graft watchdog to have him prosecuted over irregular award of the Sh100 million contract.

The investigations were initiated after Treasury Principal Secretary Kamau Thugge raised concern about corruption in Mr Ouko’s office.

Mr Thugge had fired a letter, alleging that the procurement of the Audit Vault software was inflated to Sh100 million, up from the market price of Sh18 million.

It was also alleged that the procurement process was overlooked and that the auditor-general had simply handpicked the software provider.

Other companies involved in the graft ring whose directors face charges of money laundering include Mars Technology Associates, Finsoft TCS Ltd, Enkei Holdings Ltd, Nanazi Investment Ltd and Kenya Milk Farmers.

The auditor-general’s manager information technology, Annette Mwangi, is also implicated in the corruption ring.

“I would hasten to add that all those directed to be charged... each one of them is presumed innocent until proven guilty in a court of law,” said the public prosecutor.