The embattled former Kasses constituency Member of Parliament Swarujj Mishra’s business empire is facing serious financial challenges, with auctioneers constantly knocking at his doors. Just a few weeks ago, Judge R. Nyakundi of the High Court in Eldoret saved his property from being auctioned by Legacy Auctioneers Ltd. and CIB Kenya Ltd. over loan arrears amounting to Kshs. 69,529,326.02 and USD 903,316.88, respectively.

Mr Mishra is the proprietor of Mediheal Diagnostics & Fertility Center. He moved to court together with Pallavi Jodhipur Rajthan via a Notice of Motion Application dated October 27, 2023, seeking a temporary injunction to restrain Legacy Auctioneer Services and CIB Kenya from interfering, possessing, marketing, and/or advertising for sale or selling, leasing, sub-dividing, receiving, or taking possession of the suit properties being KAPSARET/KAPSARET BLOCK 2 (KAPTUIYO)/14 and PLATEAU/PLATEAU BLOCK 2 (UASIN GISHU)/37 pending the hearing and determination of the inter-parties of this application.

Mr Mishra argued that he had religiously made payments to CIB Kenya Ltd. and that he was shocked to be informed that he was in arrears via a letter dated October 13, 2023. Further, he said that the claimed amount by the CIB was excessive. He claimed that the entire procedure and steps taken by CIB Kenya Ltd. for Legacy Auctioneers Ltd. to exercise its statutory power of sale are flawed.

Mishra pleaded with the court that the properties host critical medical infrastructure that is vital for the maintenance of the lives of patients. However, CIB Kenya Ltd. opposed Mishra’s application via a replying affidavit and submissions, saying that it was not in dispute. CIB Kenya Ltd. provided a loan facility to the Mishra, which was secured by the properties in question; however, the Mishra defaulted in payment of its loan, necessitating action being taken by Legacy Auctioneers Ltd. towards recovery of the said loan arrears.

On December 7, 2022, CIB Kenya Ltd. wrote a letter to Mishra informing him of the outstanding arrears, but the letter did not elicit any response, forcing CIB Kenya Ltd. to write another letter dated 22.3.23 reminding him of the outstanding arrears owed to the bank. Again, there was no response to this, and therefore, Legacy Auctioneers Ltd. issued him a statutory notice as per the provisions of Section 90 of the Land Act.

Upon expiry of the 90-day statutory notice, the 2nd defendant/respondent proceeded and issued the applicants with a 40-day statutory notice on 9.5.23, as the arrears were now Kshs. 73.041.458.00 and USD 903,316.88. The court noted that on August 12, 2023, Mr. Benjamin Kisoi Sila proceeded to Mishra’s place of business in Eldoret Town and effected service of the 45-day Redemption Notice and Notification of Sale upon Mr. Hillary Biwott, who acknowledged receipt but declined to sign on the auctioneer’s copies.

After the issuance of the 45-day notice chat, Mishra approached CIB Kenya Ltd. with a settlement proposal, and the initial auction chat, slated for October 9, was stopped by the bank. The judge ruled, “In the premises, the application succeeds in its entirety. A temporary injunction is hereby granted in terms of prayer 3 of the application pending the determination of the suit”.

The Kilifi County Government is at pains to explain how it processed a Sh200 million tender for purchase of Sports equipment for the Governor’s Cup football cup launched in October.

Over Sh200 million is estimated to have been lost in the tournament.

Letter to Kilifi county government by PPRA

The Public Procurement Regulatory Authority (PPRA) acting on a public complaint wrote to the county in a letter dated 24th November requesting details of processing of the tender under the Kilifi Department of Sports and Youth affairs.

The letter was directed to the County Executive Committee Member for Finance and Economic Planning Raymond Ngala.

We have received a complaint letter dated 22nd November, 2023 relating to the processing of the tender for purchase of Sports equipment for the Governor’s Cup -County Government of Kilifi Department of Sports and Youth Affairs,” the letter reads.

“IN VIEW OF THE ABOVE AND PURSUANT TO SECTION 34 OF THE PUBLIC PROCUREMENT AND ASSET DISPOSAL ACT, 2015, YOU ARE REQUIRED TO PROVIDE AND EXPLANATION ON THE STATUS OF THE CONTRACT (S) CITED ABOVE, IF ANY UNDER WHAT CIRCUMSTANCES YOU HAVE PROCESSED THE SUBJECT PROCUREMENT PROCESS BY FOLLOWING DOCUMENT,” IT FURTHER READS.

The authority requested for the approved budget for the financial year 2022/2023 with a procurement plan for the same, purchase requisition, tender invitation notice, a blank copy of the tender documents as issued to the bidders and appointment letters to the tender committee.

         Response by Kilifi county                   Government to PPRA.

Other documents requested were copy of the evaluation committee report, practising licence of head of procurement and all the procurement professionals, contract agreements among others.

In its response dated 1st December 2023 the County denied having any such tender

“WE ARE IN RECEIPT OF YOUR LETTER REFERENCED PPRA/DG/3/10 VOL.III DATED 24TH NOVEMBER 2023. WE WISH TO RESPOND AND STATE THAT WE DO NOT HAVE A TENDER FOR PURCHASE OF SPORTS OF SPORTS EQUIPMENT FOR THE GOVERNOR’S CUP AS STATED,” THE RESPONSE FROM THE FINANCE CECM READ.

The county promised to cooperate and assist the authority in its investigations.

However, the authority hit back in another response dated 4th December, 2023 with detailed information indicating specific tender details.

However, this authority has information that the subject procurement was conducted by your procuring entity processed tenders for supply and delivery of branded Sports Kits Tender Number No.KCG/GCSS/ 1240244-2022/2023 and 1247713-2022/2023.

The authority having read the response ordered for investigations.

PPRA now reveals evidence on how looting was done by Kilifi county government

“IN THAT REGARD,AN IN EXERCISE OF THE POWERS CONFERRED TO ME BY SECTION 35(1) OF THE ACT I HAVE APPOINTED A TEAM OF OFFICERS FROM THE AUTHORITY AS INVESTIGATIVE IN THE SUBJECT MATTER,” THE AUTHORITY WROTE.

Governor Gideon Munga’ro launched the mega football tournament that attracted 245 teams.

In a bid to harness the talents of the youth, Governor Munga’ro emphasized that over 5,000 participants from various football clubs would partake in the tournament, competing at the ward and county levels, insisting that their talents will not go wasted and his administration is committed to rewarding raw talents with employment opportunities.

However, the PPPR is suspecting the county did not follow the procurement laws in the tender awards for supply of the sports kits and other equipment.

The complainant has raised issued of nepotism and favouritism.

According to our investigations and insider sources, the CECM Sports and culture Dr.Ruth Masha is a cousin to Mung’aro and daughter to the late Eng. Masha of Kenya Ports Authority.

Shockingl , the CECM Finance is blood brother to the clerk of the County Assembly of Kilifi Michael Bidii Ngalla who is also deeply involved.

In the scheme to defraud the county,the cartel allocated Ksh 5million per ward across all the 35 wards.

This means that the county used Sh.175 million despite having quoted Sh200 million.

The PPRA is concerned by the fact that the County Assembly Head of procurement is also the Acting Head of Procurement and is the one who was the pivot control in the scheme.

Governor Mung’aro who is aware of what is happening is said to be working hard not to allow the matter hit headlines but the PPRA has insisted all full accountability.

The PPRA had listed Kilifi as one of the counties flouting procurement procedures in a July 2023 circular to all public entities.

It warned all procurement and accounting officers in public institutions against using complex systems of bidding to lock out small and upcoming professionals from the tendering process.

It asked accounting officers and those in charge of procurement to uphold the requirements of Section 3 of Public Procurement and Asset Disposal Act 2015.

PPRA has been receiving complaints from professional bodies whose members are interested in tendering for public procurement opportunities.

Kilifi County’s finance department has for long been at the centre stage of controversy with the department becoming a common go-to place for anti-graft agencies.

While the Governor moved the former finance CECM Yaye Shoshi and brought in Ngala, the county seems to be still at the centre of many corruption allegations.

The county was once at the centre of Ksh 400 million scandal in cash meant for drought mitigation programs which was allegedly looted through the authorship of the former finance CECM.

There have been questions as to why Governor Mung’aro moved her to the Public Service and Disaster Management docket despite the numerous allegations against her.

“IT MIGHT BE THE REASON WHY SHE WAS REASSIGNED TO THE DISASTER MANAGEMENT DEPARTMENT TO SEAL LOOPHOLES IN CASE OF ANY INVESTIGATION THAT MIGHT BE PICKED UP BY EACC OR DCI,” THE LEGISLATOR ADDED.

Early this year, a section of MCAs expressed their dissatisfaction with irregular award of tenders,low revenue collections and slow pace of development projects in the county.

They raised concerns on the rate at which companies are awarded tenders irregularly with no caution.

On the current scandal the investigators are pursuing, inspecting and perusing relevant documents that may assist in unmasking the truth.

The political landscape in Trans-Nzoia County seems to have shifted against Governor George Natembaya. It is a well-known fact that Mr Natembeya had chosen to collaborate with President William Ruto’s administration after abandoning Azimio on whose ticket he won the governorship under Eugene Wamalwa’s Democratic Action Party (DAP-K).

Last week, during the Jamhuri Day celebrations, the governor vowed never to set foot in State House again, denying claims that he had abandoned Azimio for Kenya Kwanza. Analysts now wonder why he has decided to dump President Ruto. Reports emerging from the ground in Trans Nzoia indicate that Kenya Kwanza is no longer as attractive as it was in the run-up to the last general elections.

Governor Natembeya had initially planned to align himself with the power soon after William Ruto won the presidency, but UDA operatives from the region could not allow him, hence the big about-turn. It has been further advanced that the political ground in Trans Nzoia is hostile and that his attempts to convince his supporters that working with William Ruto greatly benefited them have been met with hostility.

The Governor has also realized that DP Rigathi Gachagua is the one who is creating the bad blood between him and his deputy, and therefore working with the UDA was of no benefit to him. Sources say the DP is grooming deputy governor Phelomennah Kapkory to take over from Natembeya in 2027 or even earlier through an impeachment motion.

During last year’s general elections, Mr Natembeya garnered 158,919 votes against his competitor, Chris Wamalwa of Ford Kenya, who came in second with 79,020 votes, but soon after the election, President Ruto targeted five Azimio-allied governors by luring them into working with his administration. The targeted governors were Mombasa’s Abdullswamad Nassir, Kakamega’s Fernandes Barasa, Paul Otuoma of Busia, Simba Arati of Kissi, and George Natembeya.

It’s interesting to note that all five governors have turned their backs on President Ruto. Governor Natembeya had initially shown his readiness to work with President Ruto when he surprisingly attended a major prayer rally in Nakuru alongside the president on 13th February 2023. It was during the same prayer rally that Governor Natembeya publicly said that Ruto had been validly elected into office as president, going against his coalition’s stand at the time, which believed that the election had been manipulated by the IEBC in favour of Kenya Kwanza.

Things took a turn for the worse at the same prayer meeting when Deputy President Rigathi Gachagwa took to the podium and lectured Governor Natembeya, to the crowd’s amazement and even the president himself. Sources say that immediately after the Nakuru rally, Governor Natembeya had serious administrative issues with his deputy, Phelomennah Kapkory.