Former Tourism Cabinet Secretary Najib Balala was on Friday, December 21 arrested.
The Ethics and Anti-Corruption Commission (EACC) detectives arrested Balala alongside three others.
Other suspects are Leah Adda Gwiyo, the former Permanent Secretary in the Ministry of Tourism.
EACC Spokesperson Eric Ngumbi said the suspects had been arrested in connection to the irregular payment of Ksh8.5 billion meant for the construction of Kenya Utalii College, Coast branch, in Kilifi.
In addition, Ngumbi noted the EACC made the arrests on Thursday 20 after conducting an operation.
Further, reports indicate that the suspects are alleged to have engaged in procurement fraud, in the procurement of the consultancy for the construction of the Coastal Branch of the Utalii College.
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“In custody we have the former Cabinet Secretary Najib Balala, the former PS in that ministry and two other persons,” Ngumbi said in a media interview.
Also, in custody is Joseph Odero, the Managing partner, West Consult Engineers.
“The suspects are alleged to have engaged in procurement fraud, in the procurement of the consultancy for the construction of the Coastal Branch of the Utalii College,” he explained.
According to Ngumbi, investigations were undertaken by the commission regarding the irregular payment of KSh8.5B by the Tourism Fund out of which KSh4 billion was paid to Baseline Architects Ltd for consultancy services for the proposed Utalii College.
Notably, Balala and his co-accused are currently in custody at Integrity Centre Police Station, awaiting their arraignment later in the day.
“In total we have 16 suspects, four of them have been arrested and shortly will be transported to the Anti-corruption court in Malindi,” he stated.
Non-Budgeted Tender
On August 1, 2023, a report was compiled and forwarded to the DPP with recommendations to charge former Cabinet Secretary, Ministry of Tourism, former Permanent Secretary, Ministry of Tourism, former Chief Executive Officer of the Catering Tourism and Development Levy Trustees among others.
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This was after allegations that Baseline Consultancy was Awarded Tender for Consultancy Services for Ronald Ngala Utalii College Construction without a Budget.
“The Ethics and Anti-Corruption Commission (the Commission) received a report on allegations that the Tourism Fund (TF) fraudulently paid Ksh. 8.5 billion to set up the Coast Branch of Kenya Utalii College (later renamed Ronald Ngala Utalii College-RNUC),” the report read in part.
Nonetheless, according to the report, the project was to be funded by the Government under the vision 2030 flagship projects.
However, it was reported that the Tourism Fund managers inflated the cost of setting up the college to KSh. 10.4 billion against the initial cost of Ksh. 1.95 billion.
Also, it was established that the Tourism Fund contracted private consultants to come up with drawings and designs of the college and also to supervise the main contractor.
The drawings and designs were done and approved with a cost estimate of Ksh. 8.6 billion. Investigations established that the Cabinet in its memo signed by The Minister for Tourism on 22nd May 2007 and Minister for Finance on 20th August 2007, approved the construction of Utalii College in Vipingo at a cost of Ksh. 1.948 billion.
What’s more, it was established that not the whole amounts paid to the firms were legitimate, as the firms had been overpaid to a total of KSh. 1,483,460,914.97.
Notably, the suspects are facing ten counts of corruption and economic crimes.
