Kenya Railways Managing Director Philip Mainga on the spot over Sh8 billion for retirees.
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After narrowly escaping the onslaught on corrupt parastatals, Kenya Railways Managing Director Philip Mainga is back on the chopping board, this time around for alleged misappropriation of Sh8 billion meant for retirees.
Mainga together with other top officials are under investigations by the Ethics and Anti-Corruption Commission (EACC) over possible diversion of the funds.
Available documents indicate that the commission investigating the Kenya Railways Staff Retirement Benefits Scheme (KRSRBS) irregularly sold land measuring 139 acres in Makongeni, Nairobi. This is as per the latest report related to activities and financial statements for the financial year 2023/2024.
The inquiry could help unravel the mystery surrounding the longstanding push and pull between KRC and retired employees, with the MD Philip Mainga allegedly targeted as the spin master in diverting the funds to private use.
Mr. Mainga in cahoots with senior politicians, lawyers and businessmen are believed to have benefited a lot from siphoned millions meant for the retirees.
The KRSRBS which provides pension and other retirement benefits for former employees upon their retirement has struggled to meet its commitments.
A senate oversight committee has also seized of the matter for probing with the corporation under investigations together with many other state agencies for corruption, economic crimes, bribery and other illegalities related to the Public Procurement Act,2015.
Meanwhile the EACC insists that there is overwhelming evidence to link senior officials to the irregular disposal of Land L.R No. 209/6829, measuring 139 acres in Makongeni, Nairobi by the CEO.
The accumulated mismanaged amount captures the FYs 2021/2022 and 2022/2023, with the investigations coming hot on the heels of concerns raised by Kenya Railways Pensioners.
The commission is convinced that the MD,the schemes boss and in collaboration with a ranking government official plotted the grabbing of the 139 acres to put up residential flats through a proxy.
Other emerging issues involve the mismanagement of rent collection from the scheme’s houses with liquidity challenges on the rise. A insider has further revealed that this is a well orchestrated plot by senior officials to sell off some of their major properties.
In 2015, the scheme had to sell its 6.5 acre property in Upper Hill at a loss of Sh213 million when the market value was actually over Sh475 million.
The Directorate of Criminal Investigations (DCI) has previously quizzed senior KRC officials over illegal sale of prime properties worth billions of shillings belonging to the scheme.
The scheme is battling a petition filed by Benson Mocheo who claimed that despite working for Kenya Railways Corporation (KRC) for 17 years from January 8, 1968, to April as a station manager on permanent and pensionable terms, he has not been paid his pension dues.
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