Friday, 26 August 2016

Kinisu admits he was signatory to bank account

Philip Kinisu, the chairman of the Ethics and Anti-Corruption Commission, before the National Assembly's Justice and Legal Affairs Committee at Parliament Buildings on August 26, 2016. PHOTO | WILLIAM OERI | NATION MEDIA GROUP

Philip Kinisu, the chairman of the Ethics and Anti-Corruption Commission, before the National Assembly's Justice and Legal Affairs Committee at Parliament Buildings on August 26, 2016. PHOTO | WILLIAM OERI | NATION MEDIA GROUP

IN SUMMARY

  • Philip Kinisu, the chairman of the Ethics and Anti-Corruption Commission, has has a hard time trying to explain why he thinks dealings did not amount to conflict of interest.
  • The Justice and Legal Affairs Committee is investigating Mr Kinisu’s association with Esaki, which was was paid Sh35.4 million by National Youth Service (NYS) in 2014 and 2015.

  • On the other hand, the anti-corruption agency is investigating the NYS for loss of Sh791 million.

    Embattled anti-graft agency boss Philip Kinisu on Thursday admitted he was a signatory to a bank account that received millions of shillings from the scandal-hit National Youth Service.

The Ethics and Anti-Corruption Commission chairman, who was appearing before the Justice and Legal Affairs Committee, had a hard time trying to explain why he thought such dealings did not amount to conflict of interest.

The committee is investigating Mr Kinisu’s association with Esaki Ltd that was paid Sh35.4 million by NYS in 2014 and 2015.

On the other hand, the anti-graft agency is investigating the NYS for the loss of Sh791 million.

“The accusation here is conflict of interest, whether you are doing business with the government or not is a different matter. Even as you chair the EACC, you are still receiving money as you are a signatory to that bank account,” committee chairman Samuel Chepkong’a said.

“Any money made by this company, you benefit. Imagine you are trading with a government you are supposed to be investigating. How impartial can you be?” he said.

Mr Kinisu replied: “The law allows commissioners, as they work part time, to engage in other lawful business. The business was before I joined EACC. As a Kenyan, I don’t see why I should not be associated with a lawful business.”

The explanation did not go down well with the MPs, who fired a flurry of questions at him, and were at times openly sceptical about his answers.

BACK DOWN

Mr Kinisu eventually seemed to back down. “Over time, if we find it is untenable as EACC chairman to continue, the family business will stop (dealing with government),” he said.

He then presented documents to prove he had resigned from the company and transferred the majority shareholding to his daughter, who he said had 70 per cent shareholding while the other signatory is his wife.

But the documents landed him into deeper trouble.

Said Mr Chepkong’a: “You will find me totally upset with you because you either misled this committee or you did not tell the truth.”

He was referring to a document that showed Mr Kinisu resigned from Esaki on April 19, 2016 yet the committee’s records, from an earlier session indicate he left in 2008.

Mr Kinisu replied: “Today’s documents have full disclosure of my shareholding. I did not have the records with me at the (other) time because the company had moved premises.”

Mr Chepkong’a heatedly told him he did not need documents to remember he sat at an Esaki meeting this year unless he suffered a “memory lapse”.

Wajir Woman Rep Fatuma Ibrahim asked how as EACC boss, Mr Kinisu could not influence investigations.

“Commissioners do not have an active role in investigations. My role comes when signing reports to the director of public investigations,” he said.

Mr Kinisu blamed unnamed staff at the EACC secretariat for his problems.

“Reform implementation (at EACC) has not yet started. Some proposed measures do not sit well with those who want the status quo and so are plotting against me.”

Kasarani MP John Njoroge asked how he would fit in at the EACC if he was cleared to continue holding office. “How will you work with the secretariat you are fighting? What about the public confidence and the media?” said Mr Njoroge.

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