Confidential sources last evening revealed State House Chief Finance Officer was removed following controversial purchase of eight high-class vehicles the First Family ordered returned to suppliers this week.
The news broke as questions spiralled on how Sh40 million deal, complete with paper trail between the ‘purchasers’ and the ‘vendors’ could have reached the signing and delivery stage behind the First Family’s back. Though the fate of Mr JK Mutua, who was in charge of purchasing at State House was not immediately clear, our sources were firm he would not be working from State House and the purchase is under investigation.
"As we speak now there are new developments because the Chief Financial officer has been suspended over this matter," sources intimated.
The officer was suspended as Toyota Kenya and DT Dobie — the companies that supplied the vehicles said to have cost at least Sh40 million — pondered the next step because to them it was a sealed deal.
DT Dobie and Government signed the requisite documents and Kenya Revenue Authority has registered the vehicles for GK. This implies the Government could be forcing the firm to take back what it already legally owns.
"It has never happened before that a client has ordered for vehicles we deliver and then the owner rejects them," the firm’s marketing manager Ms Josephine Njuguna told The Standard on the telephone. Njuguna said her company was still consulting on the way forward as the matter was unprecedented. Each of the four Mercedes Benz S280 series goes for Sh5 million, but if customised the cost could even go up threefold.
Unanswered Question
Toyota Kenya confirmed selling Toyota Prado vehicles to State House "as ordered", but declined to give the size of the fleet. But the firm’s marketing manager Ms Benda Kithaka confirmed each luxury vehicle cost Sh4.7 million, duty inclusive. "For us to deliver a vehicle to our client it must be registered and fully paid for," she added, but declined to give details. Kithaka said all the Government procurement procedures were followed.
The rejection of the vehicles by the President and his wife, condensed into a one-page statement dispatched by Presidential Press Service, also triggered questions on who could have made the decision to buy the vehicles in a rush to beat the deadline of closing the financial year.
Another an unanswered question is the First Lady’s involvement in what would be a routine Executive an administrative issue at the Presidency.
The flurry of questions also turned attention to the fact that in unprecedented move, and through formal State House communication, the President and First Lady Lucy, were enjoined in the executive order on the return of the vehicles. Five times in the statement sent to newsrooms on Wednesday, the quoted and unquoted text is attributed to: "His Excellency the President and Her Excellency the First Lady…"
It opened with the line: "His Excellency President Mwai Kibaki and Her Excellency the First Lady Mrs. Lucy Kibaki have directed that eight vehicles bought without their authority for use in State House be immediately returned to the dealers ... As an immediate measure we are ordering the return of the eight vehicles that were purchased without our knowledge."
Defy Treasury
But the answered questions hinge on the fact that it would be suicidal and audacious for a Government official to order vehicles for State House without the President’s own input on his preference. Discussions on security features such as bullet proof windscreen and windows as well as non-inflatable tires, would also have to be discussed with him, or in the least his top aides.
The delicate nature of the contract, given that it is single-sourced would also require clearances at various levels within the presidency since it would cost millions. The make of the vehicles also suggest at least seven of them could not have been meant for pool transport, and must, therefore, have been earmarked for some high-ranking officials at State House. This begs the question who were they? Through whom had he channelled the requests? And at what level was the approval of procurement and payment done?
There is also the oddity that someone or some Government officers had the temerity to defy the Treasury. As the financial year closed, Finance ministry ordered accounting officers not to spend the money still in their hands hurriedly and just for the purpose of avoiding returning it to Treasury’s vaults. The circular was also clear expenditure at this time should be restricted to essential items, and not vehicles, unless for emergency or security reasons.
Njuguna disclosed the company had delivered the vehicles, meaning the "deal was as good as done." "We are looking into the matter and since it especially involves the President and First Lady. This complicates the matter even further," Ms Njuguna added. The DT Dobie official said they had received a purchase order from the Government on the vehicles and they were duly authorised and had no choice but to deliver as per the agreement.
Njuguna referred further questions on the sale to a Mr Pete Kirigwa.
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