Energy

Regulatory Board scandal

Appointed Chairman of the Electricity Regulatory Board by the then President Moi, for a period of 4 years with effect from May, 6th 1998. In the year ended of 30th June 2001 The Energy Regulatory Board recorded a deficit of shs12, 065, 812 in comparison to a surplus of shs45, 512, 587 in 1999, this reduced the General fund balance from shs100, 018 797 to Shs 87, 952, 985 as of 30th June 2001. This was as a result of additional expenditure on staff salaries, benefits and consultancy services that totaled Shs 19, 892,121 and also the reduction of total income from which fell form Shs 118, 858, 667 to Shs 94, and 057,866. The CEO of the Board reiterated to the committee that the deficit of Shs 19, 892, 121 in the Shs 94, 057, 866 total incomes was attributed to staff salaries, benefits and consultancy services. The committee was concerned that some officers in the board had occasioned the loss; there was also the fact that the staff salary was irregular since the Corporation Advisory Committee had not sanctioned the same. The Committee findings were as follows: The Board Chairman, in this respect Moses Wetangula, was irregularly paid salary and allowances totaling kshs 4, 859, 580, instead of the required honorarium of shs 480, 000 per annum as communicated to the board by the parent ministry in a letter dated 14th March 2001. It was in a meeting on May 25th, 2001 where the board, without consent from the parent ministry approved payment to its chairman (Wetangula) at the rate of Shs 200, 000 basic salary and Shs 60, 000 house allowance and other benefits which included Utilities (shs20, 000) Domestic Help (shs20, 000 pm), Medical Cover (shs200, 000 pa) Gratuity (25%) and official. The committee also observed that the Chairman bestowed upon himself authority in excess of the provisions of the Electricity Power Act of 1997. The committee further found out that the board had procured advertisement and Insurance services at a cost of shs78, 074 and shs1, 938, 811 respectively without competitive bidding. It was later to be known that two members of the board had interests in these companies. Hon Wetangula , the then board Chair had interests in Asis Promotions whist Hon Dalmas Otieno had interests in Thabiti Insurance brokers. During the year ending of 30 June 2002 the Board irregularly paid tax amounting to 1, 525, 851. 60 on behalf of members (this amount was supposed to have been recovered from the then Board members).

Committee recommendation

1. Energy Regulatory Board ref: Report of The Controller and Auditor General on the accounts on The accounts of electricity regulatory board for the year ended 30th, June, 2001.And Kenya Gazzette 2. Posta Cash ref: The Star Page: 1 on Tue 30th November 2010. Page 1


The committee recommended that the Board should recover the differential amounts from the then board Chairman and officers concerned. This never happened.

Although the Board met on April 29th 1999 and May 25th 2001 and approved its remunerations for the chairman the approval was null and void since it contravened Sections 6(1) and 27 (10) of the state corporations Act Cap 446 which supersedes Sec 3 of the Electricity Power Act of 1997 which the Board purported to be acting upon.

Posta cash
In November 2010 Wetangula was adversely mentioned in a seating by the Parliamentary Legal Affairs Committee where, Former post master General Dan Ameyo claimed Wetangula, then an assistant Minister Foreign Affairs, had pressured him to pay a law firm, hereby named Ahmednassir Abdikadir and Co Advocates, shs63milion in disputed legal fees. Ameyo claimed that Wetangula and Nairobi lawyer Ahmednassir Abdullahi had in December 8th, 2003 visited his office to persuade him to authorize the payments. Ahmednassir had successfully represented Postal Corporation of Kenya in a case in which several consultants had demanded Sh83 million pay for services. Ameyo told the committee that Wetangula had called him and said it was about Christmas and that it was good to pay the money so that he and Ameyo could get something for Christmas. The Committee was seeking to clarify allegations made against Ahmednassir since it had vetted him in November 2010 prior to him joining the Judicial Service Committee

Tokyo Embassy Scandal

On October 27th, 2010 Moses Wetangula stepped aside together with his PS Thuita Mwangi to pave way for investigation into the alleged purchase of Embassy land in Tokyo Japan. The scandal involved Sh1.1bn that was illegally paid for the land that was held to be cost less than the amount paid. The investigations involved investigating embassies in Islamabad (Pakistan), Brussels (Belgium), Lagos (Nigeria) and Cairo in Egypt.

Tullow oil scandal

Moses Wetangula admitted that his former law firm was involved in the Sh800 million transaction for an oil block in Turkana. The Minister firm is said to have sold block 10BB, where oil was later discovered by Tullow Oil an Anglo-Irish company, to Africa Oil for Kshs 800 milion. He reiterated that he had retired from the firm, and did not enjoy any financial benefits from the firm, which however continues to bear his name, since he was no longer a partner. 1. Energy Regulatory Board ref: Report of The Controller and Auditor General on the accounts on The accounts of electricity regulatory board for the year ended 30th, June, 2001.And Kenya Gazzette 2. Posta Cash ref: The Star Page: 1 on Tue 30th November 2010. Page 2

1. Energy Regulatory Board ref: Report of The Controller and Auditor General on the accounts on The accounts of electricity regulatory board for the year ended 30th, June, 2001.And Kenya Gazzette 2. Posta Cash ref: The Star Page: 1 on Tue 30th November 2010. Page 3