Isika: Tenders man in the eye of EACC Sh350m probe

David Kinyae Isika, a senior official at the Housing Department of the Ministry of Transport is passionate about procurement.

In a research published in a journal four years ago, Mr Isika who is a holder of a master’s degree in procurement from the University of Salford Manchester, UK, said much about the field in Kenya.

In the study, Mr Isika sought to examine the factors that lead to the low utilisation of e-procurement in the civil service.

The senior supply chain management officer at the Housing Department also sought to evaluate the challenges that hinder e-procurement and also explore the ways it could be sustained.

In the end, he found out that there was a significant need to “check on the skillset of the procurement personnel” since he said, effective delivery on the e-procurement platform integration critically depends on their proficiency level where the heads of procurement, staff and stakeholders posed a significant discrepancy.

According to Mr Isika, the study revealed that a majority of the staff and stakeholders were not aware of the procurement modules they were supposed to be using while sourcing goods, works and services.

From the onset, it is clear that Mr Isika knows procurement so well. Unfortunately, his pet subject has come to haunt him.

This is after Ethics and Anti-Corruption Commission (EACC) placed him on the radar over claims that he has used his influence at the ministry to award contracts to companies owned by proxies or where he is a director.

The man has in the recent past been involved in evaluation on procurement matters relating to Nairobi Metropolitan Improvement Services and World Bank-funded projects in the ministry.

In a petition filed before the Anti-Corruption division of the High Court, the EACC has sought orders to freeze his two accounts saying it is investigating Mr Isika over claims that companies associated with him got contracts worth Sh350 million.

The anti-graft agency further alleges that the contracts were awarded through circumvention of procurement laws or in an uncompetitive manner, owing to his position as a senior supply chain management officer at the Ministry of Transport and Urban Development

“The applicant is undertaking investigations pursuant to the provisions of Sections 11(1)(d) and (j) of the Ethics and Anti-Corruption Commission Act 2011, regarding allegations of embezzlement or misappropriation of public funds, conflict of interest and abuse of office,” reads the EACC application.

According to documents filed in court, Mr Isika’s net salary from 2014 to April this year stood at Sh8.3 million, more than Sh77.4 million has passed through his accounts in the seven years. He receives a monthly salary of Sh149,348.

The EACC told the court that it is investigating claims of misappropriation of public funds, conflict of interest and abuse of office after information obtained from Integrated Financial Management Information System (IFMIS) indicate that one of the companies linked to him — Wanga-Tech General Enterprises, was awarded multiple tenders by the ministry.

The commission says Mr Isika, who is a director of Wanga-Tech received payments from tenders and the monies were wired to his accounts and accounts of his proxies. The money would be used to acquire properties, which the anti-corruption watchdog has not disclosed.

Most of the money was paid to companies associated with the official and his proxies from the Ministry of Land, Housing and Urban Development, Nairobi Metropolitan Services Development and Ministry of Infrastructure.

“There is reasonable suspicion, in view of the conflict of interest and abuse of office by the first respondent (Mr Isika) that the awards of tenders to the companies associated with the 1st respondent were vastly inflated or were procured through fictitious or irregular contracts secured uncompetitively through circumvention of the procurement laws and relevant laws,” EACC said.

The commission further revealed that it obtained a warrant to search his offices and residential homes in April and later filed the petition prohibiting the transfer of the money or withdrawing them.

The companies linked to him or his proxies include Davinka Supplies and General Merchants Kola Traders Ltd, Stalwart Entertainment Ltd, Nissy Liquor Wines and Spirits Ltd and Brycen Innovations.

An analysis of the bank statements showed that from 2014 to date, Wanga-Tech received Sh90.4 million for contracts at the Ministry of Land, Davinka supplies received Sh127.8 million, Kola Traders Sh33.9 million while Brycen Smart Innovations received Sh68.5 million.

“The monies constituting proceeds of corruption and economic crime were received by and for the benefit of Isika who has been unjustly enriched by the receipt of the same,” the commission alleges.

The EACC has sought orders freezing the two accounts for six months as it conducts the inquiry, saying it is apprehensive that he might withdraw the funds before the investigation concludes.