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    

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  2    

• 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  3