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Citizen Weekly

Sunday, 17 August 2014

FILES GO MISSING AS EXTERNAL AUDITORS RAID REA HEADQUARTERS



Investigators appointed to audit financial impropriety at the Rural Electrification Authority are now staring in an empty room after unknown people broke into the managing director’s office and made away with vital files and documents just a few days ahead of the probe.


The chief executive officer is Zachary Ayieko. Weekly Citizen has learnt of how top managers and unscrupulous investigators from the Auditor General’s office had conspired to halt the auditing process which began in earnest on Monday last week.

Auditors from the office of Auditor General were supposed to carry out forensic investigation earlier on but sources indicated one lead investigator identified as Nyachio, was allegedly compromised and bribed handsomely which led to a string of suspicion from his bosses on the intended audit.

A decision by Auditor General Edward Ouko to appoint another lead auditor is said to have sent the REA managers into a panic. Internal sources privy to the investigations indicated the burglary into the managing director’s  office on Thursday, August 7, was stage-managed to get away crucial evidence ahead of the arrival of new auditors the following Monday.

“It is true a forensic audit has been ordered but some fellows are trying to frustrate the process. We shall unmask them at the right time,” said a source
Rea is among state parastatals which have been predicted to collapse and it appears officials are hellbent to loot and milk it dry before the proposed merger of state corporations kicks off.

Early last year, senior officers at the state authority were in the spotlight after they were suspected to have diverted Sh4.1 million meant for rural electrification programme.
The officers, who were drawn from the accounts department, allegedly paid the cash to non-existent suppliers using a dubious local purchase order numbers.

A company by the name Supreme Retread Company Limited wrote a letter to the chief executive officer on July 20 2013 providing details of supply of poles as per a LPO number 10001520 and submission of bank details.

It has emerged that the company does not exist in Rea Sap system and does not have a contractual agreement to supply any goods with the electricity agency.
The quoted LPO number belongs to another company identified as Pasitique Investment which had supplied stay blocks to the company.

The chief finance manager Kenneth Tarus is said to have released the cash to Stanchart Bank on August 7. The wired cash bounced back and it was resent on August 13. The cash was cleared on August 14.
Acting CEO and head of security Lindsay Kipkemoi confirmed that they had initiated internal investigations with the intention of finding out how the cash was wired to a non-existent supplier.

“We learned about the case two weeks ago and we have been doing our own internal investigations,” said Ng’ang’a
Among those facing probe and likely to be prosecuted for financial impropriety include an account assistant, a second signatory, David Rogoncho and chief accountant Peter Mbugua. Others include procurement officer Dan Amuyunzu who brought in the bank details and accounts assistant in charge of suppliers Harrison Githinji.