November 16, 2018

Blow to Kalonzo as bank accounts frozen

Wiper leader Kalonzo Musyoka has on Tuesday (2/05/17) suffered a blow after the Non Governmental Organisation (NGO) Coordination Board suspended operations of Kalonzo Musyoka Foundation with immediate effect over unaccounted Sh146 million donor funds.

The Board’s Executive Director Fazul Mahamed dissolved the entire Board of Directors of the Foundation and ordered the fund accounts frozen.

“The Central Bank of Kenya is advised to preserve all funds held at I&M Bank and/or in any other bank in Kenya under the name Kalonzo Musyoka Foundation until further communication from this office.”

“The Investment &Mortgages (I&M) Bank is further directed that all the officials of the Foundation are not allowed to transact for and on behalf of the Kalonzo Musyoka Foundation in any of their accounts until advised by this office,” Mahamed indicated in a letter.

According to Mahamed, the Foundation had been submitting false returns to the NGO Board.

“In view of the foregoing, the Board finds that there is sufficient cause to warrant forensic investigations into the affairs of the Kalonzo Musyoka Foundation on possible cases of money laundering and diversion of donor aid. Subsequently, the Board has already initiated a legal process of ascertaining the level of criminal culpability of the directors of the foundation with respect to their fiduciary responsibility to the Laws of Kenya, the intended beneficiaries and the People of Kenya,” he explained.

Mahamed also questioned how the Foundation used Sh50,000,000 from The China Youth Development Foundation for the construction of classrooms in Ukambani .
“However, these funds are not traceable in the Foundation Bank Accounts, annual returns, audited accounts of the Foundation’s bank statements availed to the Board for review,” read the NGO Board statement.

The foundation was in March accused of doing illegal currency conversions and remitting the same to other accounts in local banks.

The revelations could signal tough times for the Wiper leader, as they raise serious questions that could dent his credentials as a politician who plays by the law.

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