Former Kemri boss, six others on Sh420 million fraud charge
The anti-graft body alleges that Koech and his co-accused failed to comply with the law relating to the management of funds. File
Medical researcher Dr Davy Koech has been accused of swindling the Kenya Medical Research Institute (Kemri) of Sh420 million.
The former long-serving Kemri director together with six others face nine counts ranging from fraudulent acquisition and disposal of public property, abuse of office and failure to comply with the law relating to the management of the retirement benefits scheme’s fund.
Koech was arraigned at the anti-corruption and economic crimes court last Friday and charged jointly with Dunstan Magu, William Kipyego, Denison Kiplagat, Joel Achiba, Battan Mecca and African Medical Services Trust (AMST).
Jointly with Kipyego, the acclaimed researcher is alleged to have unlawfully transferred Sh342 million belonging to Kemri’s pension fund to an account held by AMST at Standard Chartered Bank’s Yaya Centre branch.
The seven are also accused of swindling Kemri of Sh19.8 million on diverse dates between May 2003 and April 2007.
According to the charge sheet, Koech and Magu used their offices to improperly confer a benefit on Essential Management Consultancy Ltd by allegedly withdrawing huge chunks of funds from Kemri’s pension fund without the authority of the board of trustees.
The anti-graft body alleges that Koech and the co-accused failed to comply with the law relating to the management of funds and ignoring Section 40 (b) of the Retirement Benefits Act.
A senior principal magistrate Lucy Nyambura granted the five accused a Sh2 million cash bail and set the hearing for March 8 and 9. However, upon request by KACC, the court issued summons against Achiba and Mecca. They were directed to appear for mention on January 22.
Koech was last year accused of swindling Kemri of Sh19.3 million He faced three counts of unlawfully transferring research funds from Kemri’s account at Standard Chartered Bank’s Kisumu branch, to an account with the same bank Yaya Centre in Nairobi.
The Kisumu account was allegedly registered under Kemri’s Centre for Vector Biology and Control Research (CVBCR), while the one in Nairobi was under the auspices of African Medical Services Trust (Amset), an organisation run and controlled by the researcher.
The donor funds were meant for research work but Dr Koech allegedly diverted them to a company associated with him. He served as Kemri director from 1986 until he was suspended in 2007 to allow investigations.
The researcher was nominated for the 2006 Genius Laureate of the American Biographical Institute and his name was included in the 500 Greatest Geniuses of the 21st Century.
Vector-borne diseases
He served as head of the division of vector-borne diseases in the Ministry of Health from 1981 to 1984, director of the clinical research centre of KEMRI from 1982 to 1984, and director of the biomedical sciences research centre from 1984-89.
Koech was the founder member, chief research officer and director at Kemri, a State-owned organisation charged with the responsibility of carrying out health sciences research in the country.
He was also the chairman of a commission of inquiry into the Kenyan education system between 1998 and 1999 which recommended major changes in the country’s education system.
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