Corruption: Whats wrong with us



JF-Expert Member
Nov 5, 2008


JF-Expert Member
Joined Nov 5, 2008
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Source: Nation

Just so we do not forget, here is a list of some of the the corruption scandals plaguing Kenya, while on one hand its citizens pay taxes into the same corrupt coffers, and on the other, some die from the direct effects of these scandals. Since they are too many to list here, do have a look at the almost complete list at [ame=""]wikipedia[/ame]

1. The longest-running is the Goldenberg scandal, where the Kenyan government subsidized exports of gold, paying exporters in Kenyan Shillings (Sh) 35% over their foreign currency earnings. In this case, the gold was smuggled from Congo. The Goldenberg scandal cost Kenya the equivalent of more than 10% of the country's annual GDP.

2. A Sh360 million helicopter servicing contract in South Africa. Military officers had argued that the contract was too extravagant and servicing the helicopters could be done locally. Kenya Air Force (KAF) went ahead to spend Sh108 million as a down payment for servicing the Puma helicopters, whose tail number is logged as 418 at Denel Aviation, a South African firm.

3. A Sh4.1 billion Navy ship deal. A Navy project was given to Euromarine, a company associated with Anura Pereira, the tender awarded in a process that has been criticised as irregular. The tender was worth Sh4.1 billion. Military analysts say a similar vessel could have been built for Sh1.8 billion.

4. Kamsons Motors tendered for the supply of Mahindra Jeeps to the Police Department in the mid 1990s for close to Sh1 million (US$13,000) each, at a time when showrooms would have charged customers a sixth of the price. Moreover, the vehicles were being bought for a government department and were therefore imported duty free. Few of the more than 1,000 units that were imported over several years are in service today.

5. The Prisons department lost $3 million after contracting Hallmark International, a company associated with Mr Deepak Kamani of Kamsons Motors, for the supply of 30 boilers. Only half of the boilers were delivered – from India and not the United States as had been agreed.

6. The construction of Nexus, a secret military communication centre in Karen, Nairobi. The Government, through the Ministry of Transport, spent Sh2.6 billion (US$36.9 million) to construct the complex. Three years later, military personnel have not moved into the centre. A phantom company, Nedermar BV Technologies, which is said to have its headquarters in Holland, implemented the secret project. The tendering process for the Nexus project was circumvented.

7. Between January 2003 and September 2004, the National Rainbow Coalition government spent about $12-million on cars that were mostly for the personal use of senior government officials. The vehicles included 57 Mercedes-Benz, as well as Land Cruisers, Mitsubishi Pajeros, Range Rovers, Nissan Terranos and Nissan Patrols. The $12-million substantially exceeded what the government spent over the 2003/04 financial year on controlling malaria - "the leading cause of morbidity and mortality in Kenya".

8. In 2005 plans to buy a sophisticated £20 million passport equipment system from France. Here government wanted to replace its passport printing system. The transaction was originally quoted at 6 million euros from François Charles Oberthur of Paris – the world's leading supplier of Visa and MasterCards, but was awarded to a British firm, the Anglo-Leasing and Finance Company Limited, at 30 million euros, who would have sub-contracted the same French firm to do the work.

9. On 31 August 2007, The Guardian newspaper featured on its front page a story about more than GBP 1 billion transferred out of Kenya by the family and associates of former Kenyan leader Daniel arap Moi. The Guardian sourced the information from the Wikileaks article The looting of Kenya under President Moi and its analysis of a leaked investigative document ("the Kroll report") prepared for the Kibaki government in 2004 in order to try to recover money stolen during Moi's rule.

10. In June 2008, the Grand Regency Scandal broke, wherein the Central Bank of Kenya is alleged to have secretly sold a luxury hotel in Nairobi to an unidentified group of Libyan investors for more than 4 billion Kenyan Shillings (approx US $60 million) below the appraised market value. Finance Minister Amos Kimunya negotiated the sale, and was censured in a near-unanimous motion by the Kenyan Parliament, though he vehemently denied the charges.

11. More than 80,000 bags of maize valued at Sh150 million were allocated to briefcase millers and a defunct company in Nakuru at a time when the country is facing a serious shortage of maize. Some of the maize, which was meant to cushion Kenyans against rising maize flour prices and a looming famine, was sold in Southern Sudan for US$80 (Sh6,000) for a 90 kg bag. The allocation operation was running parallel to government efforts to avert a looming famine facing some 10 million Kenyans, as reported by Nation on the maize scandal.

12. More than $1 million is missing from the country's free primary education program...

Is there any possible way of easily getting money siphoned out of the country illegally? whats wrong with our leaders, does this mean that no one cares about the billions of dollars of tax payers money going down the drain? I dont think kenyans or any African country deserve this from its leaders.

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