Update on Kenya 2013 election procurement corruption saga: magistrate dismisses two defendants after prosecution case, rules trial to proceed for Oswago and Shollei

Court rules ex-IEBC boss Oswago has case to answer over election device procurement malpracticesThe Star, 27 May, 2020:

This means the duo will now have to defend themselves over the charges levelled against them. Thirty-six witnesses testified in the case.

The court however acquitted two others who had been charged alongside Oswago. The magistrate said no case has been made against Edward Kenga Karisa and Willy Gachanja Kamanga.

In 2013, Oswago and Shollei were arraigned in court charged with failing to comply with the law relating to procurement.

The two allegedly failed to ensure the changes made to the contract awarded to Face Technologies Limited by the IEBC for the supply of Electronic Voter Identification in Tender No. IEBC14/2011-2012 were approved by the IEBC tender committee.

On a different count, they were accused of using their offices to improperly confer a benefit on Face Technologies Limited by approving payment of Sh1.39 billion for the supply of EVIDs without ascertaining that devices supplied were inspected, accepted and met the technical specifications in the contract.

Kenya 2013 Polling Station Nairobi Dagorreti North

Kenyan elections: What happened to the Anti-Corruption investigation of ICT procurement fraud in 2013 (as ordered by the Supreme Court)? [Part One]

The articles quoted below indicate that the Ethics and Anti-Corruption Commission was already “on the case” having received information before the election about potential procurement fraud and started investigating even before the Supreme Court ordered such an investigation in its ruling upholding the IEBC’s award of the winner’s certificate to Kenyatta and Ruto.

IEBC officials may be prosecuted over gadget failure.” Business Daily 16 April 2018:

Electoral commission officials and vendors of electronic systems used in the March 4 General Election may face criminal prosecution after the Supreme Court recommended they be investigated over the failure of the gadgets. 

In its full judgment of presidential election petitions released Tuesday the six judges said there were squabbles among Independent Electoral and Boundaries Commission (IEBC) officials over the procurement leading to the failure of the electronic voter identification devices (EVID) and Result Transmission System (RTS).

“We recommend that this matter be entrusted to the relevant State agency for further investigation and possible prosecution of suspects,” the six judges led by Chief Justice Willy Mutunga, the Supreme Court President, said.

Failure of the devices was at the heart of the petitions challenging the election of Uhuru Kenyatta as Kenya’s fourth president filed by Raila Odinga, who emerged second in the election, and Africa Centre for Open Governance (Africog).

. . . .

The judges said the electronic system procurement was marked by competing interests some involving impropriety or even criminality. 

“Different reasons explain this failure but, by the depositions of Dismus Ong’ondi, the failure mainly arose from the misunderstandings and squabbles among IEBC members during the procurement process,” said the judges. 

The court said enough evidence was produced to show that EVID and RTS stalled and crashed.

. . . .

With the recommendation of investigation and prosecution which was bolded on page 113 page of the judgment, the Supreme Court has set the stage for the Director of Public Prosecution and the police department to swing into action. 

Mr Ongo’ndi, Head of IT at the electoral agency, had cautioned the electoral commission against buying the EVIDs, saying they required more time and a parallel technology to function optimally. 

In an internal memo to Deputy Commission Secretary for support services Wilson Shollei and copied to IEBC CEO James Oswago, Mr Ong’ondi said the kits tender should not be awarded because of the risk that the gadgets. 

The contract was awarded to Face Technologies at a cost of Sh1.3 billion, according to Mr Oswago, who said the devices failed because of an operational challenge.

“We have nothing to hide, we are ready for any investigations and the procurement being subjected to public scrutiny,” Mr Oswago said Tuesday.

The poll books were meant to identify a voter before one could cast a ballot. They were also to verify that one was a registered voter and account for all those who voted, eliminating the risk of multiple voting, ghost voters and ballot stuffing. 

Mr Oswago said the commission abandoned the transmission software developed by Next Technologies during the referendum and by elections to develop its own for the General Election at a cost of Sh40 million. That would put the blame on the transmission system failure at the door of IEBC’s IT department which is headed by Mr Ong’ondi.

The failed software was developed in partnership with International Foundation for electoral System (IFES), which also bought the servers. The mobile phones were supplied by Safaricom.

The procurement of electronic systems was marked by controversy from the word go leading to the cancellation of the tenders for the Biometric Voter Register (BVR).

Former President Mwai Kibaki and former Prime Minister intervened and the kits were eventually delivered through a Canadian government loan of Sh6 billion.

. . . .

The Elections Act sets out offences that can be committed by commission officials including “without reasonable cause does or omits to do anything in breach of his official duty”.

Such an offence attracts a fine not exceeding one million shillings or to imprisonment for a term not exceeding three years or both upon conviction.

——–

EACC probes into poll kits procurement Business Daily 18 April 2013:

Ethics and Anti-Corruption Commission (EACC) has begun investigation into procurement of election equipment in line with a Supreme Court recommendation.

EACC in a press statement said the preliminary investigation began after it received an intelligence report that the procurement process was not transparent and may have been flawed.

. . . .

On Tuesday, the Supreme Court called for investigation and possible prosecution of electoral commission officials who may have been involved in impropriety during the procurement of electronic equipment.

A day later, Mr Tobiko [Public Prosecution Keriako Tobiko] sent a letter to EACC instructing it to start investigations, stating the directive arose from Justice Willy Mutunga court’s suggestion.

Evidence supplied by the electoral commission showed that the failure of the Electronic Voter Identification and the Results Transmission Systems mainly arose from misunderstandings and squabbles within the commission during the procurement. 

An internal memo by the commission’s head of IT warned of the risks posed by the kits.

The Treasury was forced to divert cash from other government operations to advance payment for the BVR kits and then obtain cash from the loan to replenish the IEBC account ahead of the General Election. 

Failure to each pact

“The Treasury has fully done its part and it is now up to IEBC to do their work,” the brief said.

The search for cash came after failure to reach an agreement by October 15 as stipulated in the contract with the supplier of the BVR kits, Morpho Canada. According to the Treasury, the government does not have a contract with French firm Safran Morpho as such but with the Canadian government that sought and obtained the BVR supplier, Morpho Canada.

Safran Morpho of France happens to be the subsidiary of Morpho Canada, which was contracted by the Canadian government.

Safran Morpho only made and supplied the equipment from France as a subsidiary of Morpho Canada, which is the actual contracting party in the deal with the governments of Kenya and Canada.

girungu@ke.nationmedia.com

Kenya: Investigations into IEBC ongoingThe Star via AllAfrica.com, 18 April 2013

The Ethics and Anti-Corruption Commission has said preliminary investigations into the procurement process undertaken by the IEBC began before the March 4 general elections.

EACC Chief Executive Officer Halakhe Waqo has said the investigations were prompted by information gathered by the commission to the effect that the procurement carried out by the IEBC was not transparent and may have been flawed.

Grand railroad corruption: Kenya’s Daily Nation drops expose of grossly inflated pricing and alarming details from “secret” SGR contracts

A vital “must read” from the Daily Nation confirms that in spite of Kenyan president Uhuru Kenyatta’s promise to release the contracts for the truncated Standard Gauge Railroad project, the Government of Kenya has been withholding the documents concerned about meeting public records obligations. It is said that Kenya signed the undertakings with Chinese state-owned corporations rather than the Chinese State as such, and that the documents include secrecy provisions that the lawyers are interpreting to conflict with Kenyan law as to the Governments obligations to its own citizens for public contracting.

The story details item after item of hugely inflated prices for components such as generators, supplies, machinery and equipment:

This explains how Kenya ended up paying two times more for a diesel train than what Tanzania negotiated for an electric train. A comparison of the costs shows that Tanzania is building an electric rail at half the price of Kenya’s diesel SGR line.

TANZANIA’S FASTER

At $1.92 billion, which translates to about Sh192 billion at current exchange rates, for the 422 kilometres, Tanzania’s line is not just cheaper; being electric, it’s designed to support a maximum speed of 160km/hour for passenger trains and 120km/hour for freight.

This pales in comparison to Kenya’s line, whose passenger trains have a maximum speed of 120km/hour with freight hauliers doing 80km/hour at best.

Kenya opted for diesel-powered engine that can be upgraded into electric in future.

It is the results of this greed and negligence that taxpayers are now paying for.

OPERATION COSTS

Currently, the revenues generated from the passenger and cargo services on the track cannot meet the operation costs, estimated at Sh1.5 billion a month against average sales of only Sh841 million.

Meanwhile, Kenyans transporters who have allegedly been hurt by Kenyan restrictions intended to forcibly subsidize the non-competitive costs of the Chinese-operated SGR, are seeking the contracts in court. Likewise, the civil society coalition Okoa Mombasa has filed a formal records request as a precursor to a suit if the documents continue to be withheld.

Readers may remember previous reporting of a leaked Auditor General documents indicating that Chinese firms may have been given a security interest in Kenya Port Authority assets and property to secure the loans for these inflated costs. From Maritime Executive in December 2018:

Kenya runs the risk of losing control of the Port of Mombasa if it should default on loans from state financial institution China Exim Bank, according to a new report from Kenya’s auditor general. The terms of a $2.3 billion loan for Kenya Railways Corporation (KRC) specify that the port’s assets are collateral, and they are not protected by Kenya’s sovereign immunity due to a waiver in the contract. 

KRC accepted the multi-billion-dollar loan in order to build the Mombasa-Nairobi standard gauge railway (SGR), with construction services provided by China Roads and Bridges Corporation (CRBC), a division of state-owned conglomerate China Communications Construction Company (CCCC).

“The payment arrangement agreement substantively means that the Authority’s revenue would be used to pay the Government of Kenya’s debt to China Exim bank if the minimum volumes required for [rail] consignment are not met,” auditor F.T. Kimani wrote. “The China Exim bank would become a principle over KPA if KRC defaults in its obligations.”

In addition, any dispute with China Exim Bank would be handled through an arbitration process in China, not in Kenyan courts. The auditor general expressed concern that the port authority had not disclosed these arrangements in its financial statements. 

The Auditor General’s term expired before publication of a final report and has been left vacant, conveniently for freedom of action and ability to avoid disclosure by Kenya’s political officials.

The more information that comes to light the more it would appear that the uneconomical nature of the “white elephant” megaproject was baked in from early stages and does not look to be readily resolvable without exterior finance, renegotiation, write down or other intervention.

Meanwhile, The Star covers a report by the Tax Justice Network that Kenya’s financial sector is well designed to hide corruption as the second most secretive in Africa:

Kenya’s financial sector is the among most secretive globally, according to a new report  by Tax Justice Network.

The sector has been ranked the second most rigid in Africa after Algeria and among the top 30 in the world in the latest Financial Secrecy Index of 2020.

The annual index by Tax Justice Network (TJN) has scored Kenya’s secrecy rate at 76 per cent, meaning the country is a fertile market to stash ill-gotten private financial wealth and other illicit financial flows (IFFs).

On #AntiCorruptionDay do not forget how then-fugitive Gideon Mbuvi (“Sonko”) came to Parliament in 2010

With the arrest of Nairobi Governor Gideon Mbuvi (“Sonko”) in Voi on charges of corruption and of fleeing charges and a jail sentence in Mombasa dating back to 1998, it is important to remember how Sonko came into national politics in Nairobi in the first place.

My only personal encounter with Sonko was when he showed up as MP and potential Senator-elect at the Milimani Law Courts in March 2013 when civil society leaders I was working with sought an injunction to stop the IEBC under Isaack Hassan from announcing Presidential election results after shutting down the Results Transmission System, which had allegedly unexpectedly failed (it has turned out the procurement was botched in the first place so the Results Transmission was not ever going to work).

Sonko entered politics and was elected as Member of Parliament from Nairobi’s Makadara Constituency in the by-election of September 20, 2010, as the nominee of the NARC-Kenya party led by Martha Karua, then MP for Gichuga.

Karua was appointed by President Kibaki as Minister of Justice in 2005 following the defeat of the “Wako Draft” constitution at referendum by the nascent Orange Democratic Movement, and reappointed by Kibaki in his original “half-Cabinet” of January 8, 2008 during the Post Election Violence period. Karua resigned as Justice Minister in April 2009 (being replaced by Mitula Kilonzo, father of current ODM Senator and Sonko defense attorney Mitula Kilonzo, Jr.) but one would think she and NARC-Kenya would have had resources to vet Sonko’s background if they were not familiar.

The by-election for Makadara was one of several occasioned by the courts upholding election fraud challenges against the Samuel Kivuitu led and internationally supported Election Commission of Kenya that also failed so obviously in the Presidential race.

As the Daily Nation explained in an article headlined “Makadara rivals bet on the slums” at the time Sonko originally had support of a faction within the ODM party before intervention of party leader Raila Odinga, then Prime Minister in Kibaki’s second administration (sometimes referred to as the “Government of National Unity”):

In Makadara, the roles were reversed in 2007 as ODM’s Reuben Ndolo was ousted by Mr Dick Wathika of PNU. Mr Ndolo also successfully challenged the results in court.

. . . .
The two main parties are seeking to boost their numbers in Parliament ahead of 2012.

The fight is about numbers, especially given that ODM will be seeking to turn the tables on PNU after losing a number of by-elections in the recent past,” Nairobi lawyer and political analyst John Mureithi Waiganjo said.

The party lost in Matuga at the Coast and South Mugirango in Kisii, seats it was expected to win.
Mr Waiganjo says the by-elections also come at a time when ODM, whose party leader Raila Odinga, is at the forefront in pushing for reforms ahead of 2012 elections, requires numbers in Parliament to effect the changes.
The lawyer named Mr Ndolo and Mr Wathika who were on the same side of the referendum campaigns, as the front runners for the seat. But Narc Kenya’s Gedion Mbuvi, popularly known as Mike Sonko, could spring a surprise. 
Mr Mbuvi, who intially sought the ODM ticket, has run a well-oiled, high-profile campaign that has excited many, especially youthful voters.
However, it is his alliance with Nairobi deputy mayor George Aladwa, the Kaloleni ODM councillor, that has been causing Mr Ndolo and the party sleepless nights. Although even PNU’s Wathika received a direct ticket, it is in ODM that the consequences of the nomination fallout are likely to be most felt. 
Mr Aladwa, who was said to have supported the deep-pocketed Mbuvi for the ODM ticket, has been leading a rebel faction which may seriously dent the party’s chances of victory.
Last week, party leader Odinga was forced to intervene in the matter.
At a meeting called by the Prime Minister, Mr Ndolo and Mr Aladwa pledged to bury the hatchet and work together to win the seat for the party. But there has been little evidence on the ground to show the two are back together. Even the joint rally they agreed to hold is yet to happen.
Mr Aladwa is popular among the Luhya, a significant section of voters in the constituency, and the tension between him and Mr Ndolo can only hurt the ODM candidate.
But Mr Ndolo believes that he has an upper hand after reconciling with Mr Dan Shikanda, a former soccer star, who contested the seat in 2007 on a Narc ticket and who could also influence the Luhya vote. Pundits believe that had Mr Shikanda not broken ranks with Mr Ndolo in 2007, ODM would easily have clinched the seat.

After winning the by-election by defeating both Ndolo of ODM and the PNU Party nominee Wathika on the ticket of PNU Coalition member NARC-Kenya, Sonko later left NARC-Kenya and joined PNU successor party Jubilee to successfully run for Senate in 2013 and then Governor in 2017. Karua ran separately for president as the NARC-Kenya nominee in 2013 and for Governor of Kirinyaga in 2017.

Hon. Karua has been a member of the International Advisory Council of the International Republican Institute (the organization I worked for in Kenya during the 2007 election) since 2015. The Council is a “select group of recognized leaders from around the world who share in our vision of democracy and freedom, and are willing to lend their names and counsel to this cause.”

Kalonzo-Kibaki deal and Kenya’s stolen 2007 election as explained by insider Joe Khamisi’s “Politics of Betrayal”

The Politics of Betrayal; Diary of a Kenyan Legislator by former journalist and MP Joe Khamisi was published early in 2011 and made a big stir in Nairobi with portions being serialized in The Nation.  Khamisi is definitely not your average politician in that he got a journalism degree from the University of Maryland, worked for years as a journalist, and became managing director of the Kenya Broadcasting Corporation and worked in the foreign service before being elected to parliament from Bahari on the Coast in 2002.

Khamisi was part of the LDP, the Liberal Democratic Party, and in 2007 became an ODM-K insider with Kalonzo.  While there is inherent subjectivity in a political memoir from one particular actor, Khamisi’s background in journalism serves him well.  While I cannot vouch for his accounts of specific incidents that I do not have any direct knowledge of, and I do not necessarily agree with his perspective on some things and people, he seems to try to be fair and there is much that he writes that rings true to me from my own interactions and observations in the 2007 campaign.

From his chapter on “The Final Moments” of the 2007 race, at page 223:

It needs to be said at this point that Kalonzo’s appointment as Vice President was neither an afterthought by Kibaki, nor a patriotic move by Kalonzo to save the country from chaos.  It was not a miracle either.  It was a deliberate, calculated, and planned affair meant to stop the ODM from winning the presidency.  It was conceived, discussed and sealed more than two months before the elections.  It was purely a strategic political move; a sort of pre-election pact between two major political players.  It was a survival technique meant to save Kibaki and Kalonzo from possible humiliation.

In our secret discussions with Kibaki, we did not go beyond the issue of the Vice Presidency and the need for an alliance between ODM-Kenya and PNU.  We, for example, did not discuss the elections themselves; the mechanisms to be used to stop Raila; nor did we discuss whether part of that mechanism was to be the manipulation of the elections.  It appeared though that PNU insiders had a far wider plan, and the plan, whatever it was, was executed with the full connivance of the ECK .  What happened at the KICC tallying centre–even without thinking about who won or lost–lack transparency and appeared to be a serious case of collusion involving the ECK and officials at the highest levels of government.  It was not a coincidence that the lights went off at the very crucial moment when the results were about to be announced; nor was it necessary for the para-military units to intervene in what was purely an administrative matter.  The entire performance of ECK Chairman Kivuitu and some of the Commissioners was also suspect and without doubt contributed to the violence that followed.

One of Kenya’s business tycoons has recently written an autobiography in which he tells of heroically returning early from a family vacation when he hears of the outbreak of post election violence and then hosting a dinner getting Kibaki and Kalonzo together leading to Kalonzo’s appointment as Vice President along with rest of Kibaki’s unilateral cabinet appointments in early January 2008 during the early stages of the violent post-election standoff. That version of the story does not make a lot of sense to me relative to what Joe Khamisi as an insider wrote and published back in 2011, years closer to the fateful events.

As I wrote early this year:

If you have not yet read Joe Khamisi’s Kenya: Looters and Grabbers; 54 Years of Corruption and Plunder by the Elite, 1963-2017 (Jodey Pres 2018) you must. It sets the stage in the colonial era and proceeds from independence like a jackhammer through scandal, after scandal after scandal upon scandal.

Read a great review by Tom Odhiambo of the University of Nairobi in the Daily Nation here.

Both of these books, and Khamisi’s other works are available at Jodeybooks.com.

Nairobi’s Star publishes extraordinary story using SECRET 2009 Cable about Amos Wako corruption issues published by Wikileaks in 2010 to explain U.S. visa ban and designation

Read here from The Star: “What Ranneberger told Washington about Wako on corruption”.

Update Nov. 19, see the follow-up: “10 big names join Wako on US travel ban“.

When Wikileaks first published the mass of stolen State Department cables in late 2010 while Michael Ranneberger was Ambassador to Kenya The Star to my recollection did not write any stories from them–including about this 2009 cable, classified SECRET, on the Amos Wako issues. Of course it was more timely then and Wako was still serving as Attorney General.

The Star and The Standard both stayed away from direct coverage of material from the leaked cables, while The Nation did a small number of Kenya stories–not including this Wako subject matter–before quickly backing off.

The most topical of those for me back in 2011 was a Nation story revealing that in early 2008 the US had issued undisclosed (and unknown to me) visa bans against three members of the Electoral Commission of Kenya based on substantial evidence of bribery. The State Department has never to this day acknowledged knowing about the bribery at the ECK in the 2007 election and the publication of such stories in the Nation quickly dried up. (I was told of ECK bribery by another diplomatic source in January 2008.)

Back in the States in my job in the defense industry (with my security clearance) I was told by a friend in the Kenyan media that I had been “sweetly vindicated” on my public contradictions with the Ambassador in the New York Times and otherwise about the 2007 election but the “Wikileaked” cables were not available to me due to the obligations of my security clearance. Readers of this blog will know that I started the process of requesting related information through the Freedom of Information Act in 2009, more than a year before Wikileaks hit, and that I have received released versions of some of the same Cables that Wikileaks published unredacted.

I learned in real time that Ranneberger expressed active displeasure with The Star for publishing a story in February 2008 on the leaked USAID/International Republican Institute exit poll showing an opposition (Odinga) win in the December 2007 election, so I always assumed that it was likely that the Kenyan newspapers received diplomatic encouragement not to publish independently from the stolen cables.

Clearly the Trump Administration has had quite a very different approach with Wikileaks than the Obama Administration did back in 2010 and Ranneberger is now retired from Government himself and working as a consultant and lobbyist looking, among other things, to influence the Trump Administration. So lots of things have changed aside from Wako moving to the Senate from the Attorney General’s office and having a leading role in the current Building Bridges Initiative.

[I will add links to my previous posts, but wanted to go ahead and get this up.]

See “Part Seven — one last FOIA Cable on the 2007 exit poll“:

. . . .

The quest for accountability to Kenyan voters has remained unanswered sadly.  A news story in the Daily Nation in 2011, in the final item on my chronology of links to coverage of the Kenyan election, reports from an alleged leaked cable that ten days before this February 18, 2008 meeting at the Ambassador’s residence, the State Department issued “visa bans” against ECK members based on evidence regarding bribery–but did not disclose this circumstance, or the evidence, at this [Feb 18] meeting (I checked with a participant).  We, the United States, made clear that we were willing to step up financial and rhetorical support for reforms in Kenya–such as the new constitution–under a deal in which the new Kibaki administration shared power with the opposition under an Kofi Annan-brokered bargain–but we brushed aside the issue of the fraud in the election.

Kenya election vote counting Westlands Nairobi

Kenya Senator Amos Wako, former longtime Attorney General under Moi and Kibaki, gets US “public designation” for involvement in corruption and a second US “visa ban”

Secretary of State Pompeo released a press statement today announcing a “public designation” by the United States of former Attorney General Amos Wako, along with his wife and son, for evidence of involvement in significant corruption, seemingly from his time as Attorney General. Wako served during both the Goldenburg and Anglo Leasing corruption scandals.

Recent news finds the successful Goldenburg scam architect Kamlish Pattni obtaining a court judgement for additional funds from the Government relating to incompetent prosecution endeavors against him. Also we read this week that more than Switzerland has been holding frozen funds related to the Anglo Leasing scandal which have not

The previous visa ban on Wako under U.S. Presidential Proclamation 7750 of 2004, was legally confidential, but was announced by then-Ambassador Michael Ranneberger in a Tweet in November 2009. Wako publicly acknowledged the ban for alleged failure to cooperate with reforms in the wake of the Post Election Violance following the 2007 election and announced he would sue to have it lifted. It is unclear when that ban was lifted, although it must have been a some point. As of December 2015 then-Ambassador Robert Godec told The Standard that there were several Kenyans barred from the US under Presidential Proclamation 7750.

In early 2008, according to a Daily Nation report said to be from Wikileaks, the US banned three Kenyan member of the Electoral Commission of Kenya based on evidence of bribery, but the US has never made any type of disclosure of that action or the underlying Election Commission bribery issue although I was told separately of ECK bribery by non-US diplomatic sources in the course of my work for the International Republican Institute during the Post Election Violence.

Reviewing the 1992 Election Observation Report from the International Republican Institute for my last post I noted that Attorney General Wako was accused by IRI of being “responsible for egregious pre-election irregularities related to the election framework” along with many of the District Commissioners.

US response to South Sudan corruption: a shoe drops

New action today on South Sudan corruption today, offering hope on the question from my last post “How quickly will the United States Government act in “analysis, evaluation and investigation” of The Sentry report on South Sudan?

Statement from The Sentry: “US Sanctions Al-Cardinal, Tycoon Named in Reports of The Sentry“:

October 11, 2019 (Washington D.C.) — Today, the United States placed sanctions on Ashraf Seed Ahmed Hussein Ali, widely known as Al-Cardinal, a tycoon with ties to the U.S., UK, and UAE.

Today’s action by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) target Al-Cardinal and his network of businesses, and come in the wake of two recent investigative reports by The Sentry “The Taking of South Sudan” and “Al-Cardinal: South Sudan’s Original Oligarch,” that detailed the business activities of Al-Cardinal, among others, and urged governments to sanction him and his networks.

. . . .

Joshua White, Director of Policy and Analysis at The Sentry, said: “The Sentry applauds today’s action by the Department of the Treasury, which should serve as a warning to the financial facilitators and commercial enablers of corrupt South Sudanese elites that they will lose access to the dollar unless they cease doing business that funds violence in the country. The United Kingdom and other European countries, as well as those in the region, should follow suit . . .

. . . .

The Sentry’s investigation found that Al-Cardinal has exploited opaque procurement processes, weak oversight institutions, and cozy relationships with South Sudan’s most powerful politicians to line his own pockets.

“A major enabler of corruption and violence for President Salva Kiir’s government,” according to the The Sentry’s reporting, Al-Cardinal has been embroiled in major procurement scandals, set up private businesses with ruthless military generals, imported military equipment during a bloody civil war and landed lucrative contracts linked to the implementation of the peace deal in South Sudan.

Read the full report “Al Cardinal: South Sudan’s Original Oligarch”: https://eno.ug/al-
Read the full report “The Taking of South Sudan”: https://eno.ug/

Reuters: “US imposes sanctions on two South Sudanese businessmen for fraud, bribery“:

The United States on Friday imposed sanctions on two South Sudanese businessmen, Ashraf Seed Ahmed Al-Cardinal and Kur Ajing Ater, for their involvement in bribery, kickbacks and procurement fraud with senior government officials, the Treasury Department said on Friday.

After the U.S. Treasury Department imposed sanctions on Benjamin Bol Mel, a key adviser to the South Sudanese president, in 2017, Mel used an account in the name of the companies of Al-Cardinal to evade sanctions and store personal funds, the Treasury Department said in a statement.

In early 2019, the South Sudanese government paid millions of dollars to a company owned by Al-Cardinal ostensibly for food, but that in fact was routed to senior South Sudanese government officials, the Treasury Department said. . . .

How quickly will the United States Government act in “analysis, evaluation and investigation” of The Sentry report on South Sudan?

On October 2, Assistant Secretary Tibor Nagy, the top U.S. diplomat assigned to Africa, conducted a post-UN General Assembly telephonic press briefing and availability for journalists in various Embassies on the continent. Read the full transcript here.

There were a striking number of questions about Sudan and South Sudan, but I thought this was most pertinent:

QUESTION: Okay, I can talk? All right, my name is Emmanuel from Eye Radio in Juba. I believe Mr. Tibor, you have come across the recent report that was released recently by The Sentry about implicating some South Sudanese top government officials and actually come out with recommendations to the U.S. government, so what is your current recommendations?

ASST. SEC. TIBOR NAGY: Thanks very much for raising that. Because I know the people involved in The Sentry very well. As a matter of fact, one of the key people John Prendergast, I have known and respected for a very long time. Our Department of State, U.S. government, we welcome the Sentry’s efforts to bring light to corrupt practices in South Sudan. We know for a long time that there’s been quite a relationship between corruption and conflict, unfortunately. Innocent people have suffered. The United States will very carefully review the material presented and the recommendations in The Sentry report and as you all know, the United States of America maintains the right to use all of the tools available whether diplomatic or whether financial or anything else to respond.

Right now there are allegations, they’re very serious allegations but they do require some careful analysis, evaluation and investigation. Thank you very much, over and out.

Here is the link to The Sentry report, “The Taking of South Sudan“.

So before the “over and out” Asst. Sec. Nagy does commit the US to “very carefully review the material presented and the recommendations” but it is a bit ambiguous as to whether he is committing the US to the next step of “investigation” that he says is “required” since he characterizes the report’s findings as “allegations”.

My gut reaction is to think of Asst. Sec. Nagy as someone who would like us to conduct ourselves well when it comes to underwriting the type of conduct outlined in The Sentry report (although I don’t know him at all nor was I familiar before he was tapped for this job from retirement). At the same time, you don’t make a life as a diplomat without learning to carefully say very little and make it sound like it is more for those who want something enough to hear it. So, how quickly will we do our review/analysis/evaluation? What will we do next? How quickly will we investigate? Will we send the FBI? Career Justice Department prosectors? Alternatively, the Attorney General?

What did the 2004 “Kroll Report”, leaked and published in 2007, say about Kenya’s drug running Akasha Family?