The Kenya Anti-Corruptlon Commission has recommended to the Attorney General that administrative action be taken against three trustees of the Strategic Grain Reserve (SGR) Trust Fund, the Managing Director of the National Cereal Produce Board (NCPB), The General Manager Sales and Operations, NCPB and the Sale and Marketing Manager, NCPB. The recommendations Were forwarded to the Attorney General on 30th June, 2010, and his response is being awaited

KACC investigations Into allegations of irregular sale of 3.4 million bags of maize from the Strategic Grain Reserve (SGR) revealed that the cabinet authorized the importation of maize duty free through NCPB to address the food shortage that was being experienced after a prolonged drought and the post election violence. The government further directed the implementation of a subsidized maize scheme by selling the stock from the Strategic Grain Reserve. The trustees of the SGR Trust Fund who were the Permanent Secretaries, Ministry of Agriculture, Ministry of Finance and Ministry of State for Special Programmes were to oversee the process and give guidelines on the sale of the SGR maize by NCPB. The investigations revealed that while authorizing NCPB to dispose of the SGR maize, the trustees did not give guidelines and policies to operationalize the sale of the maize. Owing to the lack of supervision by the Trustees, unscrupulous businessmen, middlemen and other Interested persons bought maize from NCPB at subsidized prices and later sold it at exorbitant prices. The investigation also showed that there were weaknesses in the regulation and sale of the SGR maize stock. Whereas the evidence obtained did not disclose any offence, it was observed that the three trustees of the SGR failed to carry out their duties as required.

This is one among 36 flies forwarded to the Attorney General Office contained in the KACC 2nd Quarterly Report of April - June 2010 and was gazetted in the Kenya Gazette on 16th July 2010. From the total number of flies forwarded, the Commission has recommended 21 flies for prosecution where 15 of the files lodged before the courts, two (2) for administrative action and 13 files for closure.

Another file that was forwarded to the Attorney General and where his response is being awaited for is on allegations that the Chief of Staff In the office of the Prime Minister influenced the award of a contract to supply 75,000 metric tonnes of maize to a South African company. The Commission's investigations revealed that after the Cabinet approved the import of maize by the National Cereals and Produce Board (NCPB), several supplier firms were identified through tendering and negotiation with the suppliers. The investigation revealed that the award of the contract to the South African firm to supply maize was done In accordance with the provisions of the Public Procurement and Disposal Act, 2005. The Commission recommended closure of the file because the investigation showed no indication that the said officer influenced the award of the contract to supply maize to the aforementioned company.

These and many other files are contained in the Kenya Anti-Corruption Commission Quartarty Report of April - June 2010

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