Maritime Authority HR boss arrested in Ksh.40.5M procurement fraud case

Detectives from the Ethics and Anti-Corruption Commission (EACC) on Tuesday arrested Henry Mwasaru, the Head of Human Resources and Administration at the Kenya Maritime Authority (KMA), over allegations of procurement fraud.

Mwasaru is accused of playing a key role in a fraudulent tender process for the provision of medical cover for KMA staff, valued at Ksh.40,539,760.

He was apprehended in Naivasha, where he had been attending a training session, as part of an operation targeting two other insurance brokers believed to have participated in the insurance scam.

Mwasaru was swiftly escorted to the EACC Integrity Centre in Nairobi for further questioning.

EACC launched investigations into Mwasaru after a complaint was filed with EACC’s Lower Coast Regional Office in Mombasa on September 30, 2024. The whistleblower raised concerns about irregularities in the awarding of the insurance tender, leading to the probe.

Confirming the operation, EACC Spokesperson Eric Ngumbi revealed that Mwasaru, reportedly conspired with Bevaline Lundu, the Head of Supply Chain Management at KMA, to fraudulently award the medical insurance tender in violation of procurement laws and regulations.

"After the search operation in their respective residential premises and homes, the three were taken to EACC Offices in Nairobi and Mombasa where they were interviewed and recorded statements. They were later released pending finalization of the probe," the EACC said in a statement on X.

"The operation, which was pursuant to court orders, yielded valuable evidentiary material that will support the ongoing investigations."

EACC added that it is intensifying focus on tenders for staff medical insurance in public institutions, which are increasingly being used as a conduit for the embezzlement of public funds through bid rigging and kickbacks.

"The outcome of the ongoing investigation will inform the next course of action, which may include prosecution and recovery of any public funds fraudulently paid from public coffers," said the anti-graft watchdog.