The Directorate of Criminal Investigations (DCI) summoned two top finance officials over allegations of misusing public funds.
Following complaints from City Hall that they were misusing public funds, former Chief Finance Officer Mohamed Sahal and finance executive Allan Igambi were summoned to the DCI headquarters.
Whereas Igambi obeyed the summons and appeared before the officers at the serious crime unit on July 14, 2022, Sahal is said to have failed to do so.
Officials familiar with the investigation said he would appear before the detectives on July 18.
Obadiah Kuria, head of the serious crime unit, wrote to the County Secretary to inform him that the DCI is investigating allegations of misappropriation of public funds.
In response to an earlier Executive Order, Governor Anne Kananu wrote to Controller of Budget Margaret Nyakangó to inform her that Sahal is no longer the Chief Officer of Finance and Economic Planning.
“Henceforth do not accept any work plans or correspondence from him,” said part of the letter dated July 7 and received on July 12.
Igambi had abruptly reversed his decision to change the name of the officer with withdrawal rights at the Central Bank of Kenya.
This came a day after Kananu reshuffled chief officers at City Hall, removing Sahal as Finance chief officer. He was replaced by Joseph Gathiaka, who is still the head of Treasury at City Hall.
The change required Igambi to change the withdrawal rights at CBK from Sahal to Gathiaka.
In a new twist, Igambi wrote to the CBK again, recalling his first letter of request to withdraw the right for Sahal.
“We have today submitted withdrawal rights for Mohamed Abdi Sahal to your esteemed office. After considering internal logistical and administrative challenges we will face with this change, we would like to recall the forms and maintain the status quo,” reads the letter dated July 6 addressed to the director Banking Division at CBK.
“We will in the course of the day submit other forms in support of this request and do kindly in the meantime request that no changes are done,” it read further.
In order for the county to receive funds, the person granted withdrawal rights must be recognised at CBK.
With the uncertainty over who has withdrawal rights between Gathiaka and Sahal, City Hall is likely to face a financial crisis.
This, along with Kananu’s letter dated July 14, prompted another letter from CBK Governor Patrick Njoroge, who proposed that Sahal be removed and that a new CECM- finance be suspended for insurgency and acting illegally and contrary to the executive order.
“To effect such a change, the publication of a Gazette Notice of the appointment of the new acting CECM-Finance is necessary and CBK requires this notice to effect the mandate changes,” read part of the letter dated July 15.
Njoroge revealed that some parties had filed a lawsuit in response to the developments and were awaiting instructions.
According to other sources, the drama at City Hall is related to control of the critical docket and payment of pending bills.
Information on various companies as shown below has been requested. The companies are Prestige management, Smart Link Ltd, Mark Tech Ltd, Mammal Enterprises, Kabuyo Thumi, African Consul Ltd, Grafhitec Designs Ltd, Neaps Enterprises, Esaki Ventures,Zeyana Enterprises Ltd, Megatron Surply , Fairbanks Ltd, Unitech Grand Ltd, Tròn Supply and Haus of D and P supplies
“It is all about control of the docket and payment of some pending bills,” said an official who asked not to be named.
According to another source, complaints against some of the officials have been filed with other investigative arms of the government, and a probe file, including a lifestyle audit, has been opened.
But Igambi has vanished and all his phones are switched off
