Police have detained a lawyer in a high-profile crackdown on a fraudulent tender scheme that swindled over Ksh182 million from an American investor.
In an update on Wednesday, November 6, 2024, the Directorate of Criminal Investigations (DCI) said the lawyer was apprehended after attending court proceedings in an unrelated criminal case in which he also stands accused.
“Following a complaint made by an American national on a fake tender diddle that saw his companies lose over Ksh 182 million to a ring of scammers in Nairobi, the Operations Support Unit detectives have arrested one key suspect,” DCI said.
“He was arrested yesterday after a session he had attended at court for the mention of another criminal case in which he is the accused person,” the statement added.
According to police, the lawyer’s arrest follows a complaint filed by a US national, a proprietor of an underground pipeline rehabilitation company, who claims he was duped into a bogus tender scheme orchestrated by a well-organized group of fraudsters in Nairobi.
Police say the complainant was drawn into the scheme in 2022 when he was invited to Kenya by another man who claimed to be the CEO of a company with promises of lucrative government contracts.
The investor’s journey began with what seemed to be a legitimate business opportunity. He was introduced to supposed government officials and presented with three different tender offers:
Tender 1: For the supply, installation, and commissioning of area control centres and disaster recovery system equipment.
Tender 2: For consultancy services on an Information Management System.
Tender 3: For the supply and installation of automatic weather stations.
According to authorities, these tenders, seemingly backed by government bodies, convinced the businessman to make payments totalling USD 1,617,200 (about Ksh182,743,600) to cover facilitation fees, bid bonds, and work permits.
Detectives report that the payments were made to escrow accounts associated with several Nairobi law firms, with funds distributed as follows:
1. $90,000 in legal fees to a law firm.
2. $30,000 in legal fees and additional fees for bid bonds to another law firm.
3. $200,200 for employee work permits to different law firm.
4. $750,000 for employee work permits to a separate law firm.
Police say in the months following the payments, the American investor faced repeated delays, blocked communication, and unfulfilled meetings.
According to authorities, once-affable members of the fraud ring began to evade contact, eventually cutting off all communication with the complainant.
Upon realizing he had been deceived, the investor reported the incident to the DCI, prompting a thorough investigation.
“What followed the payments were months of being taken in circles, with the once hospitable and respectable members of the syndicate blocking contact and foiling scheduled meetings. Devastated, the complainant reported the fraud with the DCI and investigations were launched,” DCI said.
Police say the arrest of the lawyer marks a significant development in the case.
The man was processed for arraignment and later released on cash bail, awaiting the approval of charges by the Office of the Director of Public Prosecutions (ODPP).
According to police, the search for the lawyer’s accomplices is ongoing, with detectives vowing to dismantle the network responsible for the fake tender scheme, which has not only caused financial losses but also cast a shadow over the integrity of Kenya’s legal and business environments.
This incident adds to a growing list of scams targeting foreign investors, underscoring the need for vigilance and thorough verification processes for business ventures in Kenya.
Police continue to investigate, with hopes that swift justice will discourage future fraud and restore confidence among international investors.
