List of City Hall cartel under state multi –agencies probe – Weekly Citizen

List of City Hall cartel under state multi –agencies probe – Weekly Citizen

The Director General of Nairobi Metropolitan Services Major-General Mohamed Abdalla Badi has launched investigations to unearth how over 50 firms contracted to offer legal, garbage collection and road construction by either the defunct Nairobi City Council or Nairobi County Government operations.
Badi last week met the five Nairobi county executive committee members reporting to him. Weekly Citizen has information that state multi-agencies are set to form a team to pitch tent at City Hall and unearth a cartel doing lucrative deals for decades. Insiders say the team will also bring on board Assets Recovery Authority to profile the cartel properties, how they acquired them and if to be repossessed by making applications in courts.

Abdalla Badi

The cartels are to submit official documents, payments and demanded written explanations on how the firms won the tenders.
For now, to start with, the team has a list of the over 50 firms that have been paid billions of shillings from the county government in suspicious ways. The possibilities of partners/directors staring at criminal prosecution cannot be ruled out if found questionable.
The list contains over 20 law firms that have over the years received over Sh5 billion from either the Nairobi City Council or the Nairobi County government with the help of City Hall legal department.
It is suspected they have been making fictitious claims or strike deals with litigants.
City Hall has over the years been engaging external lawyers with no policy in place to guide the allocation of briefs opening the system to abuse, engagement of firms with inadequate capacity to handle complex briefs and inequitable distribution of work.
Prior to the passage of the 2010 constitution, the town clerk had the sole discretion of choosing law firms and the figure had shot to over 50 that were being paid billions of shillings.
Some of the external lawyers hired by City Hall used to strike deals with the complainants to settle the matter out of court, ending up pocketing millions of shillings at the expense of service delivery.
Curiously, the external lawyers lost over 60pc of the cases they were hired to defend City Hall, as some would not appear in court but would welcome the judgment directing the council or the county government to pay millions of shillings to the litigants.
It is the same case with garbage collectors who are paid billions of shillings yet the city is choking with garbage. Cumulative, the cartel running the garbage collection has pocketed over Sh100 billion in the last 10 years for work not done.
Also on the list are some of the contractors hired to do road projects in Nairobi but ended up pocketing billions of shillings for no work done.
For instance between June 30 2018 and February 28 2019, the county government paid Sh1.1 billion to suppliers and contractors out of which Sh146.4 million was ineligible bills with little or no documentation to support delivery of goods and services. Weekly Citizen has seen the list under probe.
The list shows law firms that are being targeted and reasons behind:

1. Munikah and Company Advocates: The law firms demanded Sh573 million legal fees after it allegedly represented the defunct City Council of Nairobi in suit against the central government in a case related to unpaid land rates. The figure later shot up to Sh847,887,435 million.

2. Koceyo Advocates: The firm was paid Sh87 million by City Hall in questionable circumstances. Lawyer Titus Koceyo, through his the firm was initially to be paid Sh350 million by the Nairobi City County for his services, but somehow agreed to have Sh87 million.

3. Momanyi and Company Associates: The firm was paid Sh85 million without documentary proof of services offered.

4. Wachira, Mburu, Mwangi, and Advocates: The firm received Sh32.3 million in questionable circumstances. One of the advocates later died in mysterious circumstances.

5. Prof Tom Ojienda and Associates: The firm was paid Sh20 million for no work done.

6. Kithi and Company Advocates: The firm got Sh20.4 million without documentation.

7. Musyoka Annan Advocates: The firm was at the centre of a land scheme where City Hall lost over Sh2.7 billion in what seemed to be a well-formulated scheme between City Hall and law firms they hired.

8. Mbugua and Otido Advocates: The firm was also named in the Sh2.7 billion City Hall land scandal.

9. Moronge and Co. Advocates: The first was demanding Sh232,346,704 from City Hall but had no proof of work.

10. Wanjiru Theuri and Co Advocates: The firm was demanding for legal fees amounting to Sh5.1 billion from Nairobi City County allegedly for services delivered between 2013 and 2017.
11. Muriu Muigai and Co. Advocates: The firm was demanding Sh103,178,845 for services that were not clear.
12. Waweru Gatonye and Co. Advocates: The firm was demanding Sh1,904,932,149 for services.
13. KTK Advocates: The firm was demanding Sh1,133,280,980.
14. Wanjao and Wanjau Advocates: The firm was demanding Sh364,095,000 for services.
15. Kariuki Muigua and Co. Advocates: The firm was demanding Sh299,375,214.
16. Omotii and Company Advocates: The law firm received Sh175 million five months before it could file a case on behalf of the Nairobi City Council. Omotii was one of four lawyers who were at the centre of investigation into the City Hall scandal in which taxpayers lost up to Sh259 million paid out to a network of brokers for the purchase of land which, in the end, was deemed inappropriate for a cemetery.
17. Lawyer Alphonce Mutinda: He was described as the facilitator of the fraud and distributor of money fraudulently obtained in the City Hall cemetery scandal.
18. E.N. Omotii and Company Advocates: The law firm represented City Hall in the HCCC No. 1874 of 1988 George Gikubu Mbuthia Vs City Council of Nairobi with no proof of authority.
19. DB Wati Advocates: The law firm in a letter dated June 6, 2013 presupposed it was on record on behalf of the City Council. But the case was later taken over by Tom Ojienda and Associates Advocates and to date there are no records on what was the outcome of the cases and the money that was paid to Ojienda and Associates Advocates.
20. ON Ojwang and Co Advocates: The firm was paid Sh9,400,000 with no basis established for the payment.
Aside from law firms, investigations will also move on garbage collection where a cartel of ruthless individuals calls the shots. It is to be recalled that in 2014 there was a gunfight between rival gangs over a truckload of garbage that left two dead in Donholm. The second was the stabbing to death of a gang leader in Dandora over the control of the city dumpsite.
Apart from the licensed collectors, the unlicensed collectors make more than Sh5.4 billion annually as they charge Sh500 per housing unit.
Below are some of the firms that are under investigations. The Nairobi county government under Mike Sonko as governor forked out Sh524 million to 14 companies as payment for garbage collection in the city even as the county continued to grapple with increasing mounds of solid waste across the capital with some estates and backstreets choking with trash.
Below are some of the firms that are being probed:
Aende Group: The firm was awarded Sh278 million two-year contract for garbage collection in the city centre with no past experience in waste management. Aende Group admitted that when the firm bid for the tender, it had no prior experience in garbage collection.
Hardi Enterprises: it was also demanding Sh22.6 million for provision of heavy equipment and machinery. The firm directors are currently battling a graft case.
Purlexis Enterprises: It was demanding Sh2.2 million from City Hall despite providing similar services as Hardi.
• Kange Construction
• Yiro Enterprises
• Creative Consolidated System
• J W Mwangi
• Tema Home Care
• Nyawa Agencies
• Felixilease Ltd.
• Vineyard Holdings
• Jackoy Enterprises
• Acacia Equipment
• Yiro Enterprise
• Commodity Waste Management
• Puka Investment
• Purlexis Limited
• Aende Group

In the construction, the firms that are facing probe include:
1. Elite ITS Limited
2. Solid Waste Collectors
3. Reynolds Construction Company (RCC).
4. Nyoro Construction
5. Greyston Construction Company Limited.
6. Dupoto Group Limited
The probe will also move to suppliers in county hospitals, procurement, lands and Medical insurance by AAR.
Uhuru commissioned the Nairobi Metropolitan Service, a new state agency to do functions handed over to the government by the Nairobi city county government.
Badi has Enosh Momanyi as deputy director general of the new state agency.
Uhuru acknowledged that transformation of Nairobi City is a herculean task that requires diligence, commitment and hard work by all stakeholders so as to fulfill aspirations of city residents.
Among the key focus areas outlined by Uhuru for the new agency is the streamlining of urban renewal projects in places such as Jevanjee and Pangani whose implementation has been delayed over the years.
Besides prioritization of regeneration projects, the president tasked Maj Gen Badi and his team to end corruption, and to dismantle cartels which he said are a major hindrance to service delivery in the city.
“As I commission the Nairobi Metropolitan Service here today, I will task them firstly to bring an end to the corruption and dismantle the cartels. This is a tall order, but I pledge that I will ensure that they are fully supported by the government in whatever way possible to achieve this goal,” he said.
Over the next 100 days, the president challenged the new NMS team to among other targets establish the Railway City Development Authority and, streamline issuance of permits and approvals.
“Complaints of corruption and having to pay out bribes to receive permits and approvals have to be a thing of the past,” the president directed.
Further, the head of state directed NMS to work with the Nairobi Metropolitan Area Transport Authority in fast tracking the implementation of the Nairobi Urban Mobility Plan.
To enhance garbage disposal, the president gave the new agency 100 days to identify and gazette all legal solid waste disposal sites for use by both public and private collection service providers.
On water supply in the city, the President asked NMS to develop clear strategies that will ensure equitable distribution of clean water to Nairobi residents.
“Towards the development of long term, sustainable systems for water and sanitation, NMS should activate, in collaboration with the Nairobi City Water and Sewerage Company, projects that will enhance last mile connectivity for both water and sewer pipelines across the county,” he said.

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