A National Assembly watchdog committee has questioned the actual dealings between Family Bank and embattled firm associated to David Kariuki Ngari alias Gakuyo in delayed processing of title deeds of the Sh135 million land that was bought by government for a World Bank funded project in Murang’a.
Appearing before the Public Accounts Committee (PAC) of the National Assembly, bank’s Chairman Dr. Wilfred Kiboro and Rebecca Mbithi were at pains to explain what has occasioned the delays.
They were put to task over suspected possible collusion between the bank and Chosen Builders Investment Limited (CBIL) which had charged the title in question at the bank without making mandatory disclosures to the National Land Commission (NLC) and the Ministry of Transport.
Gakuyo is the director of CBIL.
Chaired by Unguja Member of Parliament Opiyo Wandayi, the committee also heard that by the time the government was buying the land, the title deed was already discharged to Family Bank for the Sh408 million the bank had advanced Gakuyo sparking fears of possible shady dealings between the bank and CBIL.
“I apologise for the delay in having the government get the tittle but it is not in our making. The project should not be jeorpadised and we will strive to ensure that this matter is quickly disposed of immediately,” Kiboro told the committee.
After the government made the payments of the of the 50 acres, the only thing the bank needed to do was to discharge the title deeds which up to now they have not.
So far, the project has stalled and World Bank has withheld further financing of the same.
Gakuyo had used the land as a collateral for the loan.
In what points to a clear corruption scheme, the National Land Commission (NLC) paid CBIL Sh135, 470,000 and the title was not transferred to the government to date.
The said compensation money was paid through Family Bank.
Further, despite having received compensation of the 50-acre piece of land in Murang’a County through Family Bank, thereafter, the bank allowed Gakuyo to charge the same title, irregularly held by CBIL for a bank facility.
The 50 acres are part of 300 known as Mitubiri/Wempa Block in Murang’a County, which is registered in the name of Chosen Builders Investment Limited whose director is Ngari, and has been charged as bank loan security at Family Bank.
The land commission paid Sh135 million two years ago for the parcel of land in question but did not obtain ownership documents.
The Ministry of Transport acquired the land for the construction of Murang’a Sanitary Landfill Project co-founded by the World Bank.
However, despite World Bank having already pumped in Sh700 million into the project, records indicate the venture is being done on a private land.
The project was meant to solve solid waste management challenges in Murang’a, Kiambu and Nairobi counties.
“This is a clear scheme that was agreed upon by Family Bank, NLC and Chosen Builders to swindle Kenyans off their money. This project is 80 per cent complete and the title is nowhere to be seen and the money is already with you. What is going on?” Wandayi posed.
He added: “As Family Bank, how did you extend this loan facility to this company if you had proper knowledge of the nature of business Chosen Builders is associated with?”
The Auditor General Nancy Gathungu also flagged the transaction in a special audit.
In a special audit on NLC’s payments on behalf of other government entities for the period 2014-15 to 2016-17, the Auditor General stated the parcel was still registered under Chosen Builders Investment despite the land having been fully paid for.
“NLC made an offer of award of Sh135, 470,000 to M/s. Chosen Builders Investments Ltd, vide a letter Ref: VAL 1506 dated 24 November, 2016 signed by Dr Salome Munubi, Director of Valuation and Taxation on behalf of NLC. The plot owner accepted the offer of award on 29November, 2016,” Gathungu said.
“As at the time of special audit, NLC had paid M/s Chosen Builders Investment Ltd a total of Sh135, 470,000 in two instalments of Sh53, 000,000 paid on 20 April, 2017 while the final installments of Sh82,470,000 was paid on January 12, 2018.”