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Egerton University payroll scandal

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Release date
September 25, 2007

Summary

24 scanned pages relating to the Sh 500 million Egerton University payroll scam (1 in 4 university employees didn't exist) and subsequent coverup.

Note
First material released 2007-9-6, substantial update 2007-9-25
Contents
  1. Press clipping from the Sunday Standard Dec 12 2004, "7 arrested as Egerton loses Sh500 million in scandal"
  2. Letter dated 10 March 2006 from the Kenyan National Commission on Human Rights (KNCHR) to the Kenyan Anti Corruption Commission (KACC) requesting action
  3. Letter dated 16 February 2005 from the Office of the Deputy Vice Chancellor to Sylvester Kiptoo
  4. Letter dated 13 September 2004 from employees (Sylvester Kiptoo & Keneth Ntongondu) of Egerton University to the KACC
  5. Letter dated 1 December 2004 from employees (Sylvester Kiptoo & Keneth Ntongondu) of Egerton University to John Githongo (PSEC)
  6. Attached accounting records demonstrating the fraud
  7. Letter dated 7 Feburary 2006 from S.C Kiptoo, Gitile Naituli & Keneth Ntongondu of Egerton University to the Chief Secretary, Office of the President
  8. Letter dated 20 September 2005 from Egerton University KSTC to Sylversto Kiptoo
  9. Letter dated 22 July 2005 from J.K Kairo of Egerton University to Sylvester Kiptoo
  10. Letter dated 30 January 2005 from Sylvester Kiptoo to John Githongo
  11. Letter dated 11 August 2005 from Sylvester Kiptoo to the Director of the Kenyan Anti Corruption Commission
  12. Letter dated 28 April 2006 from Kahiga Waitindi of Mirugi Kariuki & Co Law firm to Sylvester Kiptoo & Kenneth Ntongudu
  13. Letter dated 20 January 2005 from Sylvester Kiptoo to John Githongo
  14. Letter dated 5 October 2004 from Prof. E. M. Wathuta to Sylvester Kiptoo
Additionally, see egerton-memo.jpg    File | Torrent | Magnet for a 19 Feb 2007 letter on Egerton university letterhead admitting on-going payroll fraud.
Analysis
Egerton University payroll scandal

Download

File | Torrent | Magnet

Further information

Context
Kenya
University or research institution
Egerton Universtiy
Primary language
Leaked by
Submitted by
Wikileaks
How to verify (as provided by our source)
Here is my lawyers email Kahiga Wahitindi email kahiga@mirugi.co.ke Mirugi Kariuki and Co Advocates, Morop House Mobile +254 722 860629 office +254 722 174011. Office phone of Mr. Anthony of KNCHR, PA to Mr. Maina Kiai, 254 720570833. Hon Koigi Wa Wamwere, MP Subukia Nakuru District
File size in bytes
7258099
File Type
PDF
File type information
PDF document, version 1.4
Cryptographic identity
SHA256 d0fc9a7dcecc674c667c6c6c2b509831c6f49e41f21e84161ce77d195ad7647e
Description (as provided by our source)

7th Sept 2007

EGERTON CORRUPTION SAGA:

Background I am a Kenyan Citizen aged 36 years and have been employed at Egerton University, Njoro, Kenya since 1997 as a computer programmer attached to finance department. I have a Bachelor of Science degree from the same University. As a programmer I bumped into a suspicious piece of program code that was used to wire out money through the payroll but had no safe ways to confide this to anyone until the new government came in 2002. I had to wait though, until 2004, when I was convinced that the Government was serious enough in the fight against corruption and it was indeed safe for me and my family.

My lawyer tells me there is no subjudice issues when the aim is only to lay the facts bare. The case is questioning wether KACC took the right steps or not and if not they be compelled to take action. Prejudice issues can only arise when we argue in a way that may influence the decision of the court. I can provide a summary of the application. We need bold steps here that will overcome the fears of prejudice and meet the higher goal of public interest. We filed the case in the high court on the 27th june 2006 and since then we have only had two mentions, the next one will be on 25th Oct 2007.

The following are events that took place since 2004.

• Sept 13th 2004, I confide to my closest friend, Mr. Kenneth Ntongondu (Accountant, Finance Department) and write to report suspected corruption to The Director of The Kenya Anticorruption Authority in confidence. Highlight of the details included;

- the payroll fraud

- student’s fees payment,

- Ghost workers and payments of illegal claims

- Misappropriation of public funds.

One Dr Gitile Naituli (A senior Lecturer at the University) joins us in the process.

• Nov 18th 2004, I got confidential information that my letter of complaint to KACC has been leaked to the University.

• Dec 1st 2004, we sought attention from the office of the then PS, Ethics and Governance, Mr. John Githongo on the matter and provide irrefutable evidence on a spot incident of the alleged fraud in the month of October. The PS marks our complaint as urgent, calls and then sends us to KACC officers. We then delivered a copy of the protest note to one Mr. Yasin Ismahil (Principal Analysts) and Col (Rtd) Kariuki (In charge Protection Services) of KACC. The officers regretted the delay in investigations and the leakage and not only apologized to us but promised action. They however confided that they were still new in office and were therefore to refer the matter to other arms of government for preliminary investigation. They later called to inform us that the cause of the leak was a former Egerton University Employee then attached to KACC! and that disciplinary action was being taken.

• Dec 2nd 2004, Notified the local MP Nakuru, The late Hon Mirugi Kariuki, and The Hon Koigi Wa Wamere, MP Subukia constituency.

• Dec 6th -12th 2004, 3 junior clerks and In charge of Computer Payroll Section were arrested and charged with ‘stealing ’ Ksh 50 Million. A clear getaway plan as they are not directly responsible in committing the sums that was being wired out. No corruption charges preferred!

• December 14th 2007 or thereabout, The then University Vice Chancellor Prof Maritim, ‘praises’ leakage and ‘promises’ a ‘thorough investigation and rewards’ to ‘those who volunteered information’. Later on in a public memo he denies presence of ‘ghost’ workers and fees scandals.

• Jan 2005, The DVC A&F, Prof James Tuitoek, writes confidentially to encourage me to feel free to forward any other information on corruption( which I did and ) to himself the, the Vice Chancellor , The Criminal Investigation Department(CID,) KACC or any arm of government.

• Jan 2005, information I confided to the DVC Administration and Finance Prof James Tuitoek on misappropriation of fees monies leaks out to University community and fuels rumors of my possible sacking and/or elimination. Strange people would call my friends and family to inform me that I was treading on dangerous grounds.

• February 2005 a team composed of officers from the government Efficiency Monitoring Unit (EMU) and KACC visits the university and compiles a report recommending thorough investigation.

• April 2005, the university management, summons me to explain why I am leaking ‘false information’ to the press and KACC. No minutes of this meeting was taken and neither was any letter written to enforce the warnings given in the meeting. • April/May 2005, The DVC A&F single sources a private company Ernest and Young to ‘investigate’ the payroll fraud.

• July 22, 2005, the three of us were transferred to an outpost campus 200 Km away (Kisii Campus) and placed directly under Dr. Cynthia Kipchilat, the person we had cited in our report in the scandal. This was meant to intimidate and harass us.

• Dec 2005, Prof J.K Tuitoek is elevated to the CEO position as Vice Chancellor despite not meeting the minimum qualification advertised. (See his CV and advertisement for Vice Chancellor position)! It is rumored that the former president intervened in the placement.

• June 27th 2006, Mr. Kiptoo and Mr. Keneth Ntongondu move to the High Court to seek a judicial review on the matter.

• October 2006, Dr Gitile Naituli is suspended and faces disciplinary action for failing to teach and participating on an illegal strike despite him not being a member of UASU.

• November 2006, the university interdicts 25employees for participating in payroll fraud. The amount involved is not made public.

• Nov 27th 2006, the University council clears Dr. Naituli of any wrong doing. The VC however writes a ‘final’ warning letter to him and ‘finds him guilty of all charges leveled against him’. The minutes of the council indicates otherwise. Dr Naituli protests, issues a comprehensive press statement and seeks legal redress. He has since been sacked

• November 2006, CID officers raid Kenneth’s and Dr. Naituli’s houses simultaneously and take away documents and computers.

• January 2007, March 2007, CID officers raid my house and confiscate computers and documents. I was later released but wrote a statement on whether I was’ threatening’ to ‘kill’ the vice chancellor Prof. James Tuitoek!

• April 2007 The Deputy Vice Chancellor in charge Administration and Finance issues a memo alerting University employees to beware of ongoing payroll fraud and ghost workers.

• May 2007 a suspicious payment is made to me through the payroll for the month ending Aprill 2007.

List of Government officers who have communication on this matter to date;

1) The Permanent Secretary Civil Service and Secretary to the Cabinet

     Mr. Francis Muthaura.	

2) The Permanent Secretary, Ministry of Education, Prof Karega Mutahi

3) The Director, KACC, Mr. Aoron. Ringera (Attention Mr. Yasin Ismail, Principal Analyst, Col (Rtd) Kariuki, Protection Services.

4) The Director, Efficiency Monitoring Unit, Mr. Rweiria and Mr. Katuku (PA).

5) The Hon Koigi Wamwere, MP Subukia, Nakuru

6) The Director, Kenya National Commission on Human Rights, Mr. Maina Kiai (Attention Mr. Anthony, Personal Assistant)

7) The Director Transparency International

8) Provincial Intelligence officer, Nakuru

9) The Provincial Criminal Investigation Officer, Rift Valley Province, Nakuru.

10) The Parliamentary Investment Committee

11) The Director Presidential Anti-Corruption Steering Committee, Dr. Ochilo Ayako

12) Former VC, Egerton University Prof Maritim

13) Current Vice Chancellor, Egerton University

14) The press. Daily Nation- Mr. Mutuma Imathiu,Editor(+254724357492),

15) Former Permanent Secretary, Ethics and Governance, Mr. John Githongo

16) Lawyer Kaiga Wahitindi, Mirugi Kariuki and Co Advocates, Nakuru

17) The Hon Koigi Wa Wamwere, MP Subukia.


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