By James Kimani – Soka25east Correspondent,

Quick notes:

• Part of the Sh1.5billion ($14.5 million) meant for the botched CHAN 2018 hosting traced to persons associated with FKF boss Mwendwa
• Auditel Kenya, a branch of Auditel Ingeniera Y Servicios SI (Auditel Spain), a company incorporated in Spain, was awarded the tender for the design, supply, testing, commissioning and supervision of security access control communications, audio visual and pitch lighting systems for five stadia in preparation for the CHAN 2018.
• Investigations, however, established that no work/service was done on the stadia.
• Whereas the CHAN 2018 contract was awarded to Auditel Kenya, the Sports Ministry instead wired Kshs. 330,537,997.00 ($2.5million) to Auditel Spain where Kshs. 25, 682,893.56 ($195,344.35) was transferred to Restea Enterprises (Restea). 
• In a case before the Tax Tribunal, Auditel Kenya Limited v Commissioner Domestic Taxes (Tax Appeal 1242 of 2022) [2024] KETAT 47 (KLR) (26 January 2024) (Judgment), Auditel Spain, which received payments claimed to have entered into a contract with the State Department for Sports Culture and the Arts, but could not avail: i. Tender document and contract, ii. Bank Statements for 2017 and 2018 iii. Audited accounts for 2017 year of income. See attached Document from Kenyan Law 

Football Kenya Federation (FKF) President Nick Mwendwa is at the cross-hairs of Kenya’s anti-corruption body, the EACC, over at Kshs 1.5 billion (USD14.5 million in 2016) spent by the State Department for Sports Culture and the Arts for the botched hosting of 2018 Africa Nations Championships.

The Confederation of African Football (CAF) awarded Kenya the rights to host the CHAN 2018, only to strip the East African country of the rights for not meeting preparation deadlines and the CAF facility standards. Morocco went on to host the tournament successfully.

Since then, the EACC (Ethics and Anti-Corruption Commission) has been trailing the CHAN 2018 gravy-train (File No. EACC/FI/INQ/35/2021) and have now traced the money flow into the accounts of persons associated with Mwendwa.

At the centre of this developing story is Auditel Kenya, a company that won the tender for the design, supply, testing, commissioning and supervision of security access control communications, audio visual and pitch lighting systems for five stadia in preparation for the CHAN 2018.

In its investigation report, the EACC say that “Auditel Kenya fraudulently received public property to wit Kshs. 330,537,997.00 for services not rendered.”

In what could deal a devastating blow to Mwendwa, who is also facing accusations of trying to subvert an Act of Parliament (the Sports Act 2013) to allow him stand for re-election as the FKF President, is that EACC has traced part of the Kshs 1.5 billion ($14.5 million) to persons associated with him.

Part of the EACC report reads: “Financial investigations established that after Auditel Kenya was paid, Kshs25, 682,893.56 was transferred to Restea Enterprises (Restea). Restea transferred money to persons associated with the Football Federation Kenya (FKF) President, Leasepath Ltd and Leasetrade Ltd.” 

The file, EACC/FI/INQ/35/2021, which recommends the arrest of the FKF President Mwendwa, has now been forwarded to the Directorate of the Public Prosecutions.

Among those recommended for prosecution are:

• Former Permanent Secretary – Amb. Peter Kaberia,
• The Chief Finance Officer- Stephen Muthuma,
• Director Administration- Harun Chebet Komen,
• Principal Accountant- Enock Onditi all officers of State Department Culture and Arts,
• Senior Superintendent Engineer at Sports Kenya-John Kiende Ruga
• and the Director of Auditel Kenya-Marcos Gonzalez Puente.

Worryingly for Nick Mwendwa is the EACC charge of “Willful failure to comply with the law relating to procurement.”

If the EACC proves that this willful failure ended up conferring benefits to Mwendwa as alleged, the money laundering angle could deal a serious blow to his standing in the football management, especially with the emergence of Auditel Spain into the equation yet they were not contracted to undertake the CHAN 2018 contract.

The EACC say they have traced the proceeds of the money paid to Auditel Spain to Mwenda’s associates, which the anti-corruption is now building its case on as constituting money laundering and unlawful acquisition of public property.

EACC Charges & Recommendations at a Glance:

1. Conspiracy to commit an offence of corruption:  Recommendation to charge the Permanent Secretary MoSCA- Amb. Kirimi Kaberia, Harun Chebet Komen,Stephen Muthuma and Enock Onditi with the offence of
2. Abuse of office: Recommendation to charge the Amb. Kirimi Kaberia, Harun Chebet Komen, Stephen Muthuma Enock Onditi with the offence of
3. Financial misconduct: Recommendation to charge the Amb. Kirimi Kaberia with the offence of 
4. Willful failure to comply with the law relating to procurement: Recommendation to charge the Nicholas Mwendwa, Restea Limited and its Director, with the offence of
5. Money laundering: Recommendation to charge Leasepride Limited and its Director-, Leasepath Limited and its Director, Restea Enterprises Limited and its Director- with the offence of
6. Unlawful acquisition of proceeds of crime: Recommendation to charge Auditel Kenya and its Director- Marcos Gonzalez Puente with the offence of Unlawful acquisition of public property:

James Kimani