Report of the Parliamentary Select Committee on the Decline of the Kenya Shilling Against Foreign Currencies – February 2012

Download report here

Another Reason Prof. Njuguna Ndungu Should Be Sacked

Another reason Prof. Njuguna Ndungu should be sacked:

Apart from failing to inspire confidence in the financial sector that the Central Bank can stabilize the Kenyan shilling there is another reason for Prof. Njuguna Ndungu to leave office as Governor of the Central Bank of Kenya.  He is clearly debarred from continuing in office under Chapter 6 of the Constitution having been found guilty of lying to the public and official institutions about the notorious sale of the Grand Regency Hotel.

The Cockar Report prepared after the hearings by the Commission of Inquiry into the sale of the Grand Regency Hotel makes damning findings regarding the conduct of high ranking public officers including the former Minister of Finance and the current Governor of the Central Bank of Kenya.  The Cockar Report “finds the entire transaction tainted with misrepresentation and deception to such an extent as to warrant specialised investigation by the Attorney General and other relevant institutions into the bona fides of the purchaser and other aspects of the transaction.”  3 years have now passed since President Kibaki received this report and no action has been taken against the public officers, not least against the Governor of the Central Bank of Kenya whose contract was extended in March 2011.   Kenyans are unaware of any attempt by Kenya’s investigative bodies taken any action to ascertain the bona fides of the purchaser as recommended by the Commission of Inquiry.

Kenya’s Ministry of Finance did not give evidence before the Cockar Commission despite its subject matter being intrinsically linked to the Goldenberg scandal which emanated from within Treasury during the early 1990s.  One of the persons named in Gazette Notice No.6217, former Minister for Finance, Hon. Amos Kimunya, chose at the last moment not to appear before the Commission to give evidence. When the Commission was informed on 20th September, 2008, that he would not be appearing, it opted to summon the Permanent Secretary to the Treasury to give evidence on the Treasury’s role in the sale of the Grand Regency. Unfortunately the Commission was informed that the Permanent Secretary, who was a member of Board of Directors of the Central Bank of Kenya, Mr. Joseph Kinyua was at that time out of the country and was not expected to return before the 17th October, 2008, or thereabouts. Treasury therefore did not appear before the Commission. 102 exhibits were considered in compiling the final report.  The proceedings run over 9,000 pages.

The Governor of the Central Bank was indicted in the final report of the Commission of Inquiry.  The Cockar report states that –

“Prof Njuguna Ndungu was not truthful to other public institutions, namely the Kenya Anti-Corruption Commission, the Commissioner for Lands, the Public Procurement Oversight Authority and the Prime Minister about the sale of the Hotel. Even the valuers who were instructed to value the hotel were not told the purpose for which the valuation was being undertaken. At CBK Prof Njuguna Ndungu and Mr. Abuga were solely responsible for the disposal of the Hotel. Prof Njuguna Ndungu’s conduct was contrary to S 18 of the Public Officer Ethics Act which provides “A public officer shall not knowingly give false or misleading information to members of the public or to any other pubic officer”. Prof Njuguna Ndungu, must take responsibility for the disposal of the Grand Regency hotel in a secretive and questionable manner.”

It goes further to report that Prof. Ndungu compelled a subordinate to also violate the law –

Mr. Kennedy Kaunda Abuga acted in concert with the Governor Prof.  Njuguna Ndungu to rush the sale of the Hotel while at the same time keeping it a close secret. Kennedy Abuga was only too willing to carry out all the wishes of the Governor Prof Njuguna Ndungu relating to the disposal of the Hotel without offering independent professional opinion. Kennedy Abuga’s conduct was also contrary to S 18 of the Public Officer Ethics Act.”

Why is Prof. Ndungu still in office?  What confidence can he really inspire?

You can download the Cockar Commission Report here

Threat of International Narcotics Trade to Kenya – the Complete Imanyara Dossier Published Online

Threat of International Narcotics Trade to Kenya.  Serious allegations of drug related offences made by ex-Senior Superintendent of the Kenya Police Force Mohammed Godana Jarssa.  Tabled in Parliament by Gitobu Imanyara MP on 24th November 2010

A week ago (Wednesday, 24th November, 2010) Kenya’s Prime Minister, Raila Odinga, rose in Parliament  to make a statement on the Threat of International Narcotics Trade to Kenya.  The statement came days after the US Ambassador to Kenya, Michael Ranneberger, announced lifetime travel bans by the US Government against 4 unnamed Kenyans – three of whom are claimed to be Members of Parliament.  Prime Minister Raila Odinga’s Statement makes disturbing but revealing reading about the extent of narcotics trafficking in Kenya and the impunity enjoyed by organized criminal syndicates.  Among the facts presented to Parliament include:-

-          Close to 1 per cent of the population smoke bhang (cannabis). The highest consumption is recorded in Coast Province at 2.3 per cent followed by Nyanza Province at 1.4 per cent. The lowest consumption is in Western Province with 0.3 per cent.

-          Heroin has emerged as a killer drug to many Kenyan youth especially in urban areas, along the Coast and in Nairobi. Nationally, heroine is consumed by 0.1 per cent of the population. The highest consumption is in the Coast Province with 0.4 per cent. Nairobi and Central provinces have 0.2 per cent consumption while the rest of the provinces have less than 0.1 per cent consumption. Kenya has become a significant transit hub for cocaine destined for North America and Europe.

-          There is evidence that international drug cartels operate in the country. They operate as loose networks with limited membership. Occasionally, they compete with each other, but often, they co-operate with other criminal networks to carry out their trade. They have links with other drug cartels in other cities of the world. These cartels, although run almost exclusively by foreigners, have recruited Kenyans into their networks as agents. The Kenyan agents tend to be prominent personalities, mostly to provide protection. Some members of our key security and other governance institutions are among the recruits.

-          Drug traffickers are endangering our national security by also trafficking in small arms. Since the beginning of the year, there have been several seizures of arms destined for various parts of the country.

The first response to the Prime Minister’s Statement was made by Gitobu Imanyara, MP for Imenti Central, and he too had great revelations to make.  Imanyara tabled a dossier of documents and photographs related to a 2005 importation of cocaine into Kenya.  Imanyara’s dossier states that about New Year 2005, a cargo of 24 containers of narcotics (suspected to be cocaine) came through the Port of Mombasa disguised as Vietnamese rice.   The contraband was interdicted, in warehouses, by a Senior Superintendent of Police, Mohammed Godana Jarssa, but for his trouble, Jarssa was dismissed from the Police Force by the Police Commissioner.  The narcotics were removed from the warehouses and their destination remains unknown.

Imanyara informed Parliament that Jarssa approached him in 2009 and told him how, in the course of the investigations, he had compiled a detailed report of how he had arrested and bonded two police officers for their role in abetting the importation of the narcotic containers. Jarssa explained to Imanyara how, after preliminary investigations, he had been ordered by the then Police Commissioner, Major-Gen. Hussein Ali, to immediately stop any further investigations and also to release the two officers he had arrested and return to Nairobi.  Jarssa told Imanyara how, on his way from Mombasa to Nairobi, he had been ordered to report to some remote place near the Kenyan border town of Lokitaung, but failed to go after being warned it was a trap to secure his execution.  Jarssa went into hiding for fear of his life emerging only recently to renew his written complaint against the former Commissioner of Police for abuse of office and corruption which he had first made to the then Director of KACC, Aaron Ringera, in a letter dated 10th August, 2006 setting out, in a detailed form, the nature of the investigations he had carried out.  Incredibly the Kenya Anti Corruption Commission never took any steps to follow up Jarssaa’s report.

Considering the obvious threat that narco-trafficking poses to Kenya, and in support of Gitobu Imanyara’s campaign to end the impunity enjoyed by drug lords, Mars Group Kenya is publishing the Imanyara dossier as tabled in Parliament in its entirety.  We hope Imanyara will be able to table the names of cartel members in parliament so that action can be taken against them immediately.

Use the hyperlinks below to read the Complete Mohammed Godana Jarssa Dossier

Complaint by Mohammed Godana Jarssa against Commissioner of Police Major General Hussein Ali for Abuse of Office and Corruption (10th August 2006)

Statement to Police by Albert Wamimi 5 Jan 2005

Statement to Police by Ambrose Ayoyi 11 Jan 2005

Government Liabilities Clearance Certificate

Letter from Jarsso’s Lawyer to Kenya Anti Corruption Commission

Press Statement by Jarssa

Consignment Cheque Deposit Slip

Cotecna Levy calculation slip

Statement to Police by Francis Washe 7 January 2005

Statement to Police by Geoffrey Wekesa

Certificate of Service to Patrick Muguro 5 January 2005

Certificate of Service for Albert Wamimi 6 January 2005

Jarssa Press Statement 12 September 2005

Jarssa Press Release 13 September 2005

Jarssa Letter to Police Commissioner on Transfer 13 April 2006

Jarsso Intelligence Report to Kavila Deputy Director C.I.D.

Jarssa Report on Transit Trucks to Kavila Deputy Director C.I.D. 10 January 2005

Jarssa Transfer Memo – Nyanza 13 April 2005

Occurrence Book Corporal Wafula entries 3-5 January 2005

Robinson Kabogi Arrest Booking Report signed by Inspector Mutie (undated)

Investigation Diary of Cpl Wafula 3-5 January 2005

Jarssa Dismissal Letter received 16 July 2007

Jarssa transfer from Nyanza to Lokitaung

Kenya Ports Authority Invoice to Chibe Freighters 27 May 2003

Kenya Ports Authority Mombasa Release Order 13 May 2003

Kenya Times Newspaper article 14 September 2006

Jarssa Kit Clearance 21 September 2006

Kenya Revenue Authority Computer Print Out – Jarssa dossier

Kenya Revenue Authority Mombasa Kilindini Port Gate Register 2 January 2005

Kenya Revenue Authority Internal Memo 11 January 2005

Kenya Revenue Authority Internal Memo 5 January 2005

Kenya Revenue Authority Miscellaneous Receipt 20 May 2003

Kenya Revenue Authority Warehousing Declaration Form 10 December 2004

Lorry Loading Tally Sheet 2 January 2010

‘Release of Containers Probed’  – Daily Nation Article 26 October 2006

Statement to Police by Patrick Mwangi 6 January 2005

Jarssa Photographs of Packages in Ganjoni Warehouse Mombasa January 2005

Complaint by Jarssa for Non Action of Report to Kenya Anti Corruption Commission on 18 January 2006

Statement to Police by Sarah Hadara Kibera 6 January 2005

Statement to Police by Sophia Ngoka 5 January 2005

‘How Drugs Probe at the Coast Cost Cops their Jobs’ – Sunday Nation – 8 April 2010

‘Police seize 200m Sugar in Mombasa’ – Sunday standard 9 January 2005

Statement to Police by Sylvester Kunda (Kenya Ports Authority) 8 January 2005

‘Police Seize Goods in Customs ‘Racket’’ – The People Daily 9 January 2005

Statement to Police by Walter Musuruma 5 January 2005