Firm associated with Ruto defends itself against suspicious KSh 3.4 million payment to Sonko
Aka duwani boy lokaimoe
Nov. 03, 2019
- The insurance company insured Nairobi county vehicles and buildings among other properties against risks for a sum of KSh 60 billion
- CR12 form showed William Ruto was neither a director nor shareholder at the company as was widely rumoured
- Amaco has read political persecution on the investigation which according to the CEO, was not supposed to have been brought in the firm
- For seven years, the firm said it has been doing a clean job with the Governor Sonko-led administration
An insurance firm associated with Deputy President William Ruto has defended itself on any wrongdoing on its KSh 187 million tender with the Nairobi County government.
Ethics and Anti Corruption Commission (EACC) had summoned Africa Merchant Assurance Company (Amaco) once co-owned by Ruto over a trail of money they claim that was paid to Nairobi County Governor by a company that had been subcontracted by Amaco.
The anti graft team had sought to know why part of the KSh 20 million the firm had paid to Arbab Auto Care Ltd, a company that Amaco was doing business with was wired to Nairobi Governor Mike Sonko's account.
Documents seen TUKO.co.ke indicate that, on June 30, 2016, Amaco entered into a contract with Arbab Auto Care Ltd, which runs a garage where the county government’s vehicles are taken for repairs.
In May when the Nairobi county paid the insurance firm, they paid Arbab alongside other firms as part of payment for garage and towing services. The company wired more than KSh 20 million in bank transfers of KSh 5.3 million, KSh 10.7 million and KSh 7.5 million to the garage.
The Kangundo road based firm wired KSh 3.4 million to Sonko. Based on the transaction, the detectives who were following the trail of money summoned the insurance firm to explain their link to the pay.
Amaco Chief Executive Officer (CEO) Elizabeth Koskei told the detectives at EACC that her insurance firm had never been involved in fraudulent activities.
"We are doing a clean business with the county government, we have done this for seven years now, even before Sonko was elected to the helm of the county government," said Koskei.
Koskei said they won their first contract with the county in 2013 to insure all their vehicles and buildings at an insurance sum of KSh 40 billion.
"We were grilled for 10 hours we gave them 527 pages document that show our previous transaction with the county government, we are open and have cooperated with the investigating officers because we are clean," she said.
The Amaco boss said they won the tender for the provision of general insurance for seven years from 2013 to 2020 apart from 2017 when they lost to CIC insurance
The documents indicate an insurance premium of KSh 187 m for the sum assured of KSh 60 billion was provided for 150 vehicles, fire, public liability, burglary and computers.
Koskei read political persecution on the investigation which she claims was not supposed to have been brought in the firm.
She, however, declined to give details if Ruto still had stakes in the firm that started its operations in 2000 with both the DP and Silas Simatwo as the main shareholders.
But according to the CR12, there are two shareholders alongside Simotwo and in the list of directors, the DP's name is not mentioned.
According to Koskei, the firm which was once one of the biggest motor vehicle insurance provider is determined to improve its service in the industry.
"We have had our challenges but we are vibrant and healthy for any business," said Koskei.
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