Detectives from anti-graft agency have on Friday arrested Former Tourism Cabinet secretary Najib Balala. The arrest follows allegations that the Tourism Fund fraudulently paid KES 8.5 billion to set up the Coast branch of Kenya Utalii College (later renamed Ronald Ngala Utalii College) at the time he was a CS.
“Investigations were undertaken by the commission regarding the payment of KES 8.5 billion by the Tourism Fund, out of which KES 4 billion was paid to a company for consultancy services for the proposed Ronald Ngala Utalii College in Vipingo, Kilifi County,” said Ethics and Anti-Corruption Commission (EACC) spokesperson Eric Ngumbi.
According to investigations, Rea Vipingo Company Limited donated the land on which the college was to be built, and the Tourism Fund illegally paid KES 8.5 billion for the setting up of a satellite Utalii College in the coast region.
The former minister was arrested on Thursday night alongside three others, including Leah Adda Gwiyo, the former Principal Secretary in the Ministry of Tourism, and Joseph Odero of West Consult Engineers.
EACC has been on the radar of senior officials who previously served in the tourism ministry, which was led at the time by Balala, his then-PS Leah Gwiyo, and the former Tourism Fund CEO, among others.
The probe revealed how some private consultants were contracted by the tourism fund to come up with architectural designs and drawings of the college and to supervise the main contractor. The drawings and designs were approved for KES 8.6 billion.
The CEO of the catering tourism and development levy trustees, members of the tender committee, the sole proprietor of Ujenzi Consultants, the directors of Mulji Devraj, and the brothers face additional charges that include one count of deceiving principal in violation of the law.
The EACC recommended five counts of wilful failure to comply with procurement laws, as read in conjunction with the Anti-Corruption and Economic Crimes Act 2003, four counts of unlawful acquisition of public property, and one count of abuse of office.
Upon conclusion of the investigations, EACC submitted the investigation report to the DPP, and the DPP concurred with the recommendations to apprehend and charge 16 persons. Detectives were searching for more suspects in the case.
The suspects will be transferred to the anti-corruption court in Malindi for further action.
