Court Orders A Freeze On Daayo Company Over Alleged Misappropriation Of Money

by Mahakamani News

Bank account of Daayo Construction and General suppliers has been frozen pending investigation into purchase of two motor vehicle for Wajir Governor Mohamed Abdi.

High Court ordered the said company account at Kenya Commercial Bank Wajir branch be frozen for six months pending investigation on alleged misappropriation of money meant for purchase of two motor vehicles for Wajir Governor at a cost of 26 million.

The court also ordered account of Fine Trust Construction Limited at Kenya Commercial Bank Wajir branch frozen for six months.  12 million paid for the purchase of governor vehicle was transferred to the company.

Justice Hedwig Ong’undi further ordered Toyota Land cruiser  VX 8 LC 200 SERIES KCQ 004U should not be disposed of in any manner whatsoever for six months.

The Judge further ordered the said Governor’s Toyota Land cruiser  VX 8 LC 200 SERIES KCQ 004U be immediately placed in the custody of Ethics and Anti-Corruption Commission for inspection and valuation pending conclusion of the investigations.

This is after EACC moved to the high court Anti-Corruption court seeking orders to prohibit Daayo Construction & General Suppliers Ltd and Fine Trust Construction Co. Ltd from disposing,  wasting, dealing or transferring money in the Kenya commercial bank Wajir branch for period of six months.

The agency also applied for Cosmos Cars Limited barred from disposing,  wasting, dealing or transferring Toyota Land cruiser  VX 8 LC 200 SERIES KCQ 004U.

According to affidavit by investigating officer Eric Otieno, he said they are investigating allegations that 26 million public funds intended to purchase two vehicles for Wajir Governor were misappropriated.

EACC is also investigating the tender number WCG/T/416/2017-2018 which they suspect was irregularly awarded to Daayo Construction & Suppliers limited who directors are Ahmed Abdi Jimale and Osman Abdi Jimale .

The expenditure of 26 million to purchase two motor vehicles for the Wajir Governor were not budgeted in the financial year 2018/2019.

“We obtained warrants to investigate Daayo Construction & Suppliers limited Kenya Commercial bank account wajir branch and established that the county Government of Wajir had transferred 26 million to Daayo account on 2.7.2018,” said EACC investigator.

They adds that on 3.July.2018 Daayo Construction & Suppliers limited transferred shilling 14 million to Cosmos Cars Limited ostensible  to purchase the motor vehicles sought by the Wajir County Government and remained with with 12 million.

On 3.7.2018 Daayo Construction for unknown reasons irregularly transferred the balance of 12 million to Fine Trust Construction Co. Ltd thereby fully expending the 26 million advanced by the county government.

Fine Trust Construction Co. Ltd director is Yasmin Jama Abdullahi, wife to Osman Abdi Jimale of Daayo Construction & General Supplies Ltd.

“There was no consideration for the shilling 12 Million transferred to the Fine Trust Construction Limited by the Daayo Construction & Suppliers Limited and I have reason to believe that this fraudulent transaction was intended to embezzle funds belonging to the County Government of Wajir,” added investigator.

On 4 of July, 2018 Daayo Construction & Suppliers Limited and Cosmos Cars Limited entered into an Agreement of Sale for the purchase of motor vehicle registration number KCQ OO4U chassis number URJ202-4147576 engine number 1UR-0675846 Toyota Land Cruiser VX 8 LC 200 Series at a cost of shilling 14 Million.

” I believe the purchase price of shilling 14 Million for a used motor vehicle is grossly inflated and intended to deprive the County Government of Wajir of the true value for its money,” added investigator.

They said as of 23.January.2019 motor vehicle KCQ OO4U Toyota Land Cruiser VX 8 LC 200 Series has not been transferred to the County Government of Wajir and is still registered in the name of the Cosmos Cars Limited according to the National Transport and Safety Authority (NTSA) Motor Vehicle Records.

The investigator further added that Daayo Construction & Suppliers Limited has only procured one used motor vehicle on behalf of the County Government of Wajir instead of two  motor vehicles as prescribed in the Tender Award document.

The agency suspect that the the company intended to defraud the County Government of Wajir of shilling 26 Million made up of motor vehicle Toyota Land Cruiser VX 8 LC 200 Series and the shilling 12 Million transferred to the 2nd Respondent by the 1st Respondent.

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