Inquiry into allegations of Misappropriation of Public Funds by Gov. Ali Bunow Korane and Officials of Garissa County

Press Release

The allegation

The Ethics and Anti-Corruption Commission (EACC) has been conducting investigation into alleged misappropriation of public funds amounting to Kshs. 233,506,000/= by the Governor, County Government of Garissa, Ali Bunow Korane and other officials of the County Government.

Investigation

EACC established that the County Government of Garissa received a total of Kshs. 233,506,000/= from the World Bank under the Kenya Urban Support Programme (KUSP) to support infrastructural development projects in Garissa and to be implemented by the Municipal Board of Garissa. The funds were set aside to finance three Municipal projects namely: – construction of Quorey Market, re-carpeting of Garissa Township CBD roads and construction of storm water drainage and pedestrian walkways.

The Commission however established the following;

1. That a sum of Kshs. 205,234,132/= was irregularly diverted by County officials to various County Government accounts while still at the Central Bank of Kenya.
2. That part of the money amounting to Kshs. 124,000,000/= was later irregularly diverted to the County Departments of Water and Health and the Garissa Water and Sewerage Company (GAWASCO).
3. That there was no justification for utilizing the Programme funds in that manner since the County had an emergency fund budget of Kshs. 93,000,000/= in the FY 2018/2019 and Kshs. 40,000,000/= in the FY 2019/2020.
4. That there was an elaborate scheme by the suspects to defraud the Garissa Municipal Board through diversion of public funds.

Recommendations

Upon completion of investigation and pursuant to Section 35 of the Anti-Corruption and Economic Crimes Act, the inquiry file was submitted to the Director of Public Prosecutions (DPP), who upon review has concurred with the EACC’s recommendations to prefer charges against five (5) persons for

1. Conspiracy to commit an offence of economic crime, contrary to section 47A(3) as read with section 48 of the Anti-Corruption and Economic Crimes Act, No. 3 of 2003.
2. Willful failure to comply with applicable procedures and guidelines relating to management of funds, contrary to section 45(2)(b) as read with section 48 of the Anti-Corruption and Economic Crimes Act No. 2003.
3. Misappropriation of public funds, contrary to section 154(1) as read with section 199 of the Public Finance Management Act, 2012.
4. Engaging in a project without prior planning contrary to section 45(2)(c) as read with section 48 of the Anti-Corruption and Economic Crimes Act No. 2003.
5. Abuse of office contrary to section 46 as read with section 48 of the Anti-Corruption and Economic Crimes Act, 2003.

The suspects are as follows;

1. Hon. Ali Bunow Korane – Governor Garissa County.
2. Ibrahim Nur Malow – Former Chief Officer, Finance.
3. Mohammed Ahmed Abdullahi – Former Head of Treasury.
4. Abdi Shalle – Municipal Manager.
5. Ahmed Abdullahi Aden – Head of Accounting, Municipal Board.

Action

The EACC hereby directs the following persons to present themselves at EACC headquarters located at Integrity Centre Nairobi, tomorrow Friday 11th September, 2020 at 8.00 am;

1. Hon. Ali Bunow Korane – Governor Garissa County.
2. Ibrahim Nur Malow – Former Chief Officer, Finance.
3. Mohammed Ahmed Abdullahi – Former Head of Treasury
4. Abdi Shalle – Municipal Manager
5. Ahmed Abdullahi Aden – Head of Accounting, Municipal Board.

Twalib Mbarak,
CBS Secretary/Chief Executive Officer Ethics and Anti-Corruption Commission