The government is said to be probing a bank account associated with Wiper leader Kalonzo Musyoka, where illegal activities have apparently been detected.
The NGO Coordination Board has accused the Kalonzo Musyoka Foundation of running an illegal account which has been receiving millions of money from foreign donors.
According to a letter by the Board CEO Fazul Mahammad, the Foundation has neither been disclosing the origin of the money nor the amount received.
“The board has noted the Foundation has opened and is operating a secret and illegal foreign currency account held under the Kalonzo Musyoka Foundation. This account has been the principal recipient of all foreign currency amounting to millions of Kenya shillings donated by foreign donors,” part of the letter reads.
The Board further accused Musyoka organisation of illegally converting foreign money into Kenyan currencies and transferring the same into local banks which the NGO regulator says is a contravention of rules and regulations of its registration.
“The foreign currency account has also been used for conversion to Kenya Shillings and subsequent crediting to the Foundation’s bank accounts. Kindly note, this foreign currency account has been opened and is being operated in contravention of Section 12 (4) of the NGOs Co-ordination Act No 19 of 1990, and Clause 10 of the Terms and Conditions...,” the letter was quoted by the Standard.
In addition to that, the Foundation has also been accused of using only one auditor for more than 10 years and manipulating accounting figures in contravention of the law.
“The Kalonzo Musyoka Foundation has been audited by one auditor for more than 10 years now since its registration in 2005. Instances of creative accounting have been noted from the accounts alongside the situation creating familiarity threats, which directly affect the independence of the auditor,” the NGO Board states.
Those under investigation are the Wiper leader, his son Kennedy, wife Pauline and a Martha Mulwa who are said to be directors of the Foundation.
Reached for a comment, Musyoka stated that he would not comment on the matter adding that he “had not seen any correspondence from the board.”
