November 14, 2018

Kalonzo foundation sues Board after accounts frozen

The Kalonzo Musyoka Foundation has on Monday (8/5/17) sued Non Governmental Organization Coordination Board for freezing its bank accounts and suspending its operations over unaccounted funds.

The Foundation faulted the move by the NGO Board stressing “it is illegal because it was done without a court order.”

Through lawyer Albert Murambi, the NGO board was accused of acting unlawfully.

“The conduct of the respondent is irrational since prior to the move the applicant had complied with all the legal requirements,” he stated.

The Foundation which is associated with National Super Alliance (NASA) presidential running mate Kalonzo Musyoka, also sought orders prohibiting the board from de-registering it or in any way interfering with the rights of its officials and officers,” under the pretext of investigations.”

The (NGO) Coordination Board suspended operations of Kalonzo Musyoka Foundation last week 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 .

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