Monday, March 16, 2009


Revealed: How Kemri lost over Sh550m

Details have now emerged of the financial malpractice that led to the loss of millions of public funds and workers' savings at the Kenya Medical Research Institute (Kemri).

Former director Davy Koech

And some of the shocking revelations include the backdating of the salary of former director Davy Koech to July 1, 2004, enabling him to pocket a basic salary of Sh5.2 million in March 2006.

According to an audit report that was commissioned after Dr Koech was suspended, only one board member was involved in the move to backdate his salary.

The two audit reports indicate that Koech irregularly transferred more than Sh19.3 million of CDC funds into private accounts and mismanaged more than Sh536 million of pensioners' money together with two board trustees. When reached for comment by telephone yesterday, Koech said: "there is a Government agency that has taken over the matter. I will not comment on that report you are talking about for now."

The sleaze, as two audit reports indicate, left Kemri on its knees grappling with a budget hole of more than Sh650 million.

Just a week after Public Health Minister Beth Mugo disbanded the board, The Standard has obtained the audit reports that adversely implicate Koech and two trustees of the board.

One of the reports was compiled by Roberts Insurance Brokers (RIBL


Davy Koech as you may know is DALC's chairman. The irony of this story is that The Standard are able to report the details of Koech's intricate scam that happened all those years ago but have nothing to say about DALC's ongoing fraud. I suspect that they are looking the other way since DALC is paying handsomely to air the class and for the frontpage ads.
The Standard and KTN are engaging in double standards here, would they pull up their socks and investigate Humphrey Ouko Oborah for once? We have written to the management and editors to no avail. They will take alot of shaft from us and many other Kenyans when the DALC saga is exposed in other newspapers soon. This will leave alot of mud on the Standard and KTN because we have made all effort to bring them to light and we are sure they ignore becaus DALC is a major client.
DALC stakeholders ought to take a dim view of their institution considering that the director is a fake ass professor and the chairman is accused of overseeing the pilfering of  KEMRI retirement fund. Is that another one that jealous people came up with?


Post a Comment