Dec 5, 2022

Mawazo Writing Africa

Writing about the main

Inside the fake Sh200m prison deal giving Millicent Omanga sleepless nights

At first glance, Milways Enterprises is a beautiful story that would inspire even the most hopeless of souls to start a small business and grow it into a giant corporation.

A 27-year-old Millicent Omanga registered Milways Enterprises as a company name on February 2, 2009.

Unlike a limited liability company, a company name is not a separate legal entity but allows individuals to trade legally.

Ms Omanga has previously explained that Milways Enterprises sells imported furniture and other household goods and that this is one of the vehicles that has led her to financial success.

Ms Omanga, now 40 , is in trouble with the Anti-Graft Inspectorate who could prosecute them along with other companies and individuals implicated in conspiracy to defraud taxpayers of Sh4.8 billion by two faulty contracts awarded by the Kenya Prisons Service.

The investigation comes as the nominee senator is attempting to secure a seat in the next National As Apparent when Kenyans go to the polls on August 9th walk. She is eyeing the women’s headquarters in Nairobi.

Records at the Business Registration Service show that Milways Enterprises operates out of the Development Towers on Biashara Street.

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It had just contracted to supply rifle slings to the Kenya Prison Service in 2019 when the Ethics and Anti-Corruption Commission (EACC) began several tenders from government institutions to deal with it.

The contracts examined would have cost the taxpayer 4.8 billion shillings without the delivery of weapons and other security equipment having been guaranteed.

The EACC investigations prevented this from releasing any funds.

Curiously, the Kenyan Prison Service had agreed to release 80 percent of the contract sums to suppliers.

Ms Omanga would have received 200 million shillings to supply gun slings . That means the Prison Department would have given her bail of 160 million shillings.

Aside from the irregularity of the huge bail, Ms Omanga’s contract was somewhat redundant as guns are fitted with slings during manufacture.< /p>

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Read: State could lose Sh7m in prison food supply fraud

The investigation is on ongoing and could affect several people, including Ms Omanga , being prosecuted along with past and present Kenya Prison Service officials who the EACC believes have conspired to defraud taxpayers.

Whistleblowers left Information leaked to the EACC that the Kenya Prison Service had struck dubious contracts with several companies that set taxpayers back Shillings 4.8 billion.

Detectives say the contracts are n been the work of insiders who would have worked with suppliers to skip legal processes to release most of the money – 3.6 billion shillings – before any safety-related equipment was delivered.

Among the mys Another issue the EACC investigation aims to solve is how a furniture supplier won a bid to supply sensitive equipment related to national security.

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Companies usually have to show they have experience delivering the goods they’re looking for or services to participate in a publicly funded tender.

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This means that Milways would have its experience in supplying safety equipment such as gun slings under prove n.

The EACC is also investigating why officials from the Kenya Prison Service agreed when to release 80 percent of the tender amount. Many of the contracting parties failed to meet critical requirements such as providing bank and performance guarantees.

< p>When the nation contacted Ms. Omanga to find out how she received the order, the senator claimed we dialed the wrong number.

“I don’t know, wrong number,” Ms. Omanga said, before she ended the call l.

The phone number we dialed is listed next to Ms. Omanga’s email address in the Business Registration Service records as a contact person for Milways Enterprises.

The type of deal Milways conducted is listed as ‘unavailable’.

EACC investigators yesterday confirmed to the nation that investigations into the dubious contracts are ongoing and that there is a close working relationship Work between the agency and the director’s office gives to the prosecutor’s office. This is to tie up any loose ends that might prevent a conviction.

While private individuals acting under company names are not allowed to bid on publicly funded tenders, exceptions are usually made for the supply of goods or services , which cost small amounts of money.

The step aims to reduce the risk of losing money if the person in charge is unable to deliver the goods or services.

“The It’s common practice that small companies may be allowed to trade using company names, but there’s a certain threshold,” said Victor Olao, a lawyer with government procurement experience.

“There’s a certain Level of openness when doing business with individuals. For example, what happens if you pay the person, then they die? With a company, it can outlive its owner.”

Perhaps the most notable irregularity in the Kenya Prison Service’s tenders is that there was no approval from the National Security Advisory Committee.

Isaiah Osugo, a former Commissioner-General for Prisons, told the EACC that he was not aware of plans to purchase the equipment, although his approval was required. The equipment was also not budgeted.

Other companies whose heads are under investigation are Firetruss Systems, which is associated with the supply of bulletproof vests and helmets worth Sh 2.2 billion, and Mildat Z O.O., which was hired to procure Sh343 million worth of rifles and related equipment.

Pakistan Ordnance Factory would have received Sh1 billion for the supply of rifles and submachine guns.

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