Sunday, December 7, 2014

UK officials face 7 years in prison over ‘chickengate’

The outcome of the corruption case is expected by end of January next year. PHOTO | FILE
The outcome of the corruption case is expected by end of January next year. PHOTO | FILE 
By DAVID HERBLING
In Summary
  • UK’s Serious Fraud Office (SFO) is prosecuting two executives of Smith & Ouzman Ltd for enticing officials to be awarded lucrative tenders at the defunct Interim Independent Electoral Commission (IIEC) and the Kenya National Examinations Council (Knec).

Two executives of the British firm named in the ‘chickengate’ scandal face up to seven years in jail if convicted of bribing Kenyan election and examination officials to win security printing contracts.

UK’s Serious Fraud Office (SFO) is prosecuting the two executives of Smith & Ouzman Ltd (S&O) for enticing officials to be awarded lucrative tenders at the defunct Interim Independent Electoral Commission (IIEC) and the Kenya National Examinations Council (Knec).
The full trial before an 11-member jury at the Southwark Crown Court in London began on November 10 and the outcome of the corruption case is expected by end of January next year.
“The maximum sentence is seven years’ imprisonment but the sentence is a matter for the judge,” said the SFO in a statement to Business Daily.
“The trial at this stage is expected to conclude late December or early January, because of the Christmas holiday period.” Christopher Smith, former chairman at S&O, and his son, Nick Smith (sales and marketing director), have been charged in a London court for paying out bribes codenamed ‘chicken’ totalling Sh50 million to facilitate the family-run business win printing tenders at the IIEC and Knec.
However, Kenyan officials named in the scandal including Independent Electoral and Boundaries Commission (IEBC) chairman Ahmed Issack Hassan, Energy secretary Davis Chirchir, who served as commissioner at IIEC, James Oswago (ex-CEO), former Judiciary registrar Gladys Boss Shollei (deputy CEO) and former Knec boss Paul Wasanga are yet to be investigated and charged for allegedly eating ‘chicken.’
Others implicated in the scam are Kennedy Nyaundi (commissioner), Kenneth Karani (senior procurement officer) and an unnamed finance director.
The Knec executives named in court papers are deputy CEO Mwai Nyaga, Geoffrey Gitogo (ICT manager), Ephraim Wanderi (computer manager) and Michael Ndua (principal supplies officer).
Court papers show that the bribery payments were made through Trevy James Oyombra, the S&O Kenyan agent, who would in turn discreetly wire the ‘chicken’ to IIEC and Knec officials’ bank accounts.
Prosecutor Mark Bryant-Heron concluded his submissions on November 17, having given the court a blow-by-blow account of how IIEC and Knec senior officials reportedly inflated prices by up to 38 per cent mainly to cater for the kickbacks.
The Smith family and S&O began their defence on Monday last week, saying they only paid commissions to their local agent Mr Oyombra.
“It is estimated that the jury is likely to go out to consider their verdict during the second week of December, but this could be subject to change,” the SFO said in an interview.
The case charge sheet says Smith family and S&O have been jointly charged of making corrupt payments contrary to the UK’s Prevention of Corruption Act (1906) which prohibits use of inducements to employees of companies to influence decisions and win business deals.

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