A tale of looting spree that has dogged state owned Numerical Machining Complex (NMC)
The once vibrant Numerical Machining Complex (NMC), a government owned corporation lost its luster and has perennially been dogged by corruption scandals and the now rekindled botched privitisation attempts linked to internal sabotage.
The Informer Media Group delves in into the inside operations of the state owned body to unravel the murky dealings allegedly orchestrated by former and current senior managers.
Among the key corruption cases yet to be finalised include the controversial purchase of two machines worth Sh38million at an inflated cost of Sh121million, our investigations reveal.
Detectives attached to the Economic and Commercial Crimes Unit (ECCU) at the Directorate of Criminal Investigations (DCI) are also investigating a case in which a Chinese company was awarded a tender, and paid in full, but never delivered the goods.
In one of the cases investigated by the DCI, Greenberg Holdings Limited was awarded the tender for supply and installation of a CNC Universal Turn Mill machine.
The tender NMC/02/2014/2015 was advertised on January 30, 2015. A purchase order number 4886 dated March 20, 2015 shows that the machine was bought at a cost of Sh98, 878, 941and not the normal price of Sh30 million.
ECCU detectives have asked the NMC to furnish them with copies of the purchase order and payment voucher of the machine.
The then head of the head of the ECCU directed the Managing Director of Numerical Machining Complex to furnish them with documents related to the fraud.
Part of the letter read: “This office is investigating a case of stealing by servant of funds Contrary to Section 281 of the Penal Code. To enable us complete our investigations kindly furnish us with certified true copy of the following purchase orders; NMC4886, NMC 5038, NMC 5316, NMC 5315, NMC 5026, NMC 5359, NMC 5524.”
The detectives also sought the payment vouchers for the above purchase orders and any other relevant document which could assist them in investigations.
In another suspected fraud under investigations, NMC is said to have bought a machine worth Sh8million at an inflated cost of Sh23million.
The tender number NMC/04/2014-15, according to the police, was awarded to Rene Enterprises Ltd.
Detectives also said that NMC tendered for the supply and installation of a lathe machine at an inflated cost of Sh23,796,134 according to a purchase order number NMC5038, dated July 8, 2015.
Already, the NMC has furnished the detectives with the relevant documentation.
In another scandal that cost tax payers millions of shillings, NMC awarded a tender for the supply of flat bars and plates to ETH Impex Bloc Ltd.
Though the company was paid over Sh5million, the goods were never delivered at all.
A Purchase Order number 5287, for example, indicates that ETH IMPEX Bloc Ltd was paid Sh1.58million on May 4, 2016 for the supply of two sets of flat bars.
A week later the company was paid another Sh2.5 million for the supply of 2 tons of plates through tender number NMC/RT/01/2015/16.
One of the employees who recorded statements with the police is Damaris Gichara, who prepared some of the payments through a Kenya Commercial Bank (KCB) account.
Gichara in her statement said that the payments were approved and authorised by the head of Finance and MD respectively.
Earlier this month, Trade, Investments and Industry Cabinet Secretary Moses Kuria appointed George Maketeto as the acting NMC Managing Director until the position is substantively and competitively filled.
Maketeto took over from Eng. David Mwadali who proceeded on retirement.
The NMC board is chaired by retired Major General Pastor Awitta.
NMC is an engineering firm established in Kenya in 1994 for the purpose of manufacturing motor vehicles, vehicle spare parts, steel production, and manufacture of machinery, machine tools and components.
NMC is domiciled under the Ministry of Trade, Investments and Industry and is owned by Kenya Railways having 51 per cent andKenya Shipyard Limited (KSL) holding 49 per cent shares in trust of the government.
A decade ago, a botched plot was hatched for its disposal through a private sale to the Privatisation Commission to a foreign firm after demonstrating it was a dead horse economically and it would be unreasonable to allow it to continue operating with support from the government.
The chronology of events aimed at effecting the plan started with burning of three crucial transformers on diverse dates in 2003.
Interestingly, no report was filed with the police for action on the suspected arsons neither was there any form of internal official investigations as to the cause of the fires.
The plot hit a dead end when the government decided to turn around key parastatals.
However, internal sources within the ministry top echelons and NMC indicate plans are underway to revive privatisation initiative.
