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Part 1 of 7: The Rot At The National Industrial Training Authority

Dr Kamau Gachigi Chair of the Board

National Industrial Training Authority

 

Dear Sir

 

MASSIVE PROCUREMENT IRREGULARITIES AND LOSS OF MILLIONS IN TRADE TEST FEES THROUGH FRAUD

 

There is a general degeneration of leadership in the Authority and criminal employees are taking advantage to strip ruthlessly public resources in its custody. The Chair MUST take a firm stand to stop this wanton pillage.

 

  1. Employees have highlighted the features qualifying NITA as failing in governance as follows;

 

    1. Absence of the rule of law and outright selective justice

    2. Emergence of untouchable individuals and patronage

    3. Massive Corruption and outright theft/fraud that is not controlled

    4. Promotion and embracing mediocrity in theAuthority

 

  1. Procurement Irregularities andBribery/Kickbacks

 

    1. Provision of Group Medical InsuranceCover

 

FY 2014/2015, FY 2015/2016, FY 2016/2017, FY 2017/2018

 

The perpetual change of Insurance Companies providing Medical Cover for employees from CIC, AAR (twice), and lately SANLAM is as result of a deal gone sour. The procurement regime informing the changes places Mr Julius Olayo at the centre of these controversial changes. The following are the tough questions requiring answers from Mr Olayo;

 

      1. What is the role of commission agents in the entire procurement in place of underwriters?

 

      1. Why did he appoint himself as the Scheme Administrator, his own relative and female associate (contract employee) as Assistant Administrator and the Contact persons respectively?

      2. Why did he communicate to a Medical Insurance Provider in an appointment he signed upon self instead of the Authority’s Accounting Officer – the Director General?

      3. In the self-appointed communication made to the Insurance Company, Mr Olayo provided mobile Nos. 0738397348 and 0739353730 as the contacts for Eric Owino & Sally Cynthia Ojwang and out of curiosity; these are not the official or rather known mobile numbers for the two employees even as we make this communication. What informed this secretive and clandestinetactic?

      4. Why was ONE name of the name of the contact employee at NITA TACTICALLY omitted in the nomination letter addressed to the Insurance firm?

      5. HR is the ‘USER’ of the Medical Insurance. What informed his chairmanship of the Tender Evaluation Committee?

      6. In collusion with Elvina Osodo, what was the reason behind appointing ‘particular individuals’ associated with Mr Olayo into the membership of the Tender EvaluationCommittee?

      7. Last but not least, the ‘agent’ who pitched a tent in Mr Olayo’s office before the award was acting SALAM Insurance. Is Mr Olayo aware that this was taken as direct association with a procuringentity?

      8. What was Mr Olayo’s role in the conspiracy and collusion that saw the elimination of potential firms meeting the requirements at preliminary, technical and financial stages?

      9. Who was behind the FORGERY of the Director General’s SIGNATURE in a letter nominating an employee of a procuring entity as an Administrator of the Medical Scheme instead of the procuring entity?

      10. He has made erratic changes of employees handling payroll and Medical Insurance Scheme. The two items are currently handled by relatives/families. Why is this happening?

We are sharing with the relevant government agencies the intricate web of collusion between Mr Olayo, Ms Osodo, Eric Owino a dizzying misfeasance. We are well aware that certain individuals from the management bribed EACC officers to backtrack from Investigating the Commission’s complain by Pioneer Insurance over an unpaid sum of money withheld by AAR as a kickback to Mr Olayo.

 

The NITA Board should be reminded of Elvina Osodo’s Corrupt Background traced to the County Government of Kisumu where she served as the Director of Supply Chain before she was dismissed for awarding tenders to family members and relatives apart from demanding kickbacks. Mr Olayo as Head of HR has played it cool and is yet to make a report of her background check to the Board. Employees do not expect that report to come from the Board Chair or the Director General.

  

Other Procurement Irregularities;

  • Massive collusion with proxies to award tenders

  • Corruption andBribery

  • Award of tenders to companies with;

    • No legal status

    • Fake documentation

    • Fictitious cr7

    • Direct association with contractors contrary to the Authority’s code of Conduct andEthics

 

  1. Fraud at the Directorate of Industrial Training

 

We draw your attention of an intentional and well-choreographed concealment and theft of Trade Test Fees at the Directorate of Industrial Training which has occasioned the loss of millions to some individuals’ pockets. There is a massive false representation of miscellaneous receipts issued against payment of Trade Test Fees where the Authority is short-changed.

 

This is a fraudulent scam which is within the knowledge and full understanding of the top most management and the following officers are better placed to explain why the matter was suppressed and concealed from reaching theBoard

 

    1. Stephen Ogenga

    2. William Mwanza

    3. David Ogenya

    4. Karoli Omondi – Chief Architect

 

 

REMEMBER, Alfred Jamal (Mr Olayo’s Nephew) defrauded the Authority Ksh 12M which is yet to be recovered. From HR, Procurement, Finance, ICT to the NITA centres, there is a dominant community of relatives, brothers and sisters. It is the recipe for procurement irregularities, fraud and the leakage of classified information to outsiders and third parties.

  1. EXTORTION OF EMPLOYEES BY A MEMBER OF THE BOARD

Mr Ernest Nadome should be called upon to step aside from the NITA Board for an independent investigation into his extortion conduct. First, Mr William Mwanza did NOT meet the threshold requirements to be considered for the position of a Manager Industrial Training. He was however, given the job after parting with Ksh. 450,000 despite having an HND Certificate instead of a Masters’ Degree among other requirements.

Two, Mr Nadome was accused of having threatened levy Inspectors with dismissal based on allegations sensationally made against them. He engaged a retired officer and his long term friend, Junias Otiti and one Rachael Iha to collect on his behalf Ksh 500,000 from the 19 inspectors to enable him influence and silence the matter in the Board on allegations which were pure lies.

Three of the Levy Inspectors refused and the rest, 16 were asked to raise an agreed amount of Ksh 330,000. Mr Otiti.This matter was brought to the attention of the Director General but there was little he would do because of intimidation and the misuse of corporate power by Mr Nadome. This is part of the many reasons that informed the choreographed and wrongful dismissal of 6 Levy Inspectors in December.

 

NITA EMPLOYEES ARE REPORTING

 


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