[Former Vice President Kalonzo Musyoka, addresses participants, at his Kalonzo Musyoka Foundation, November 6, 2012. Photo/ Kalonzo Musyoka Foundation/Facebook]
Former Vice President's Kalonzo Musyoka Foundation is on the spot, over alleged misuse of donor funds.
The Non-Governmental Organisation (NGO) Coordination Board has suspended operations of the foundation, belonging to Kalonzo Musyoka with immediate effect, for allegedly failing to account for Sh146 million, donor funds.
NGO Coordination Board Executive Director Fazul Mahammed also ordered that the Foundation's bank accounts at the I&M Bank, be frozen, for immediate audit and investigations.
According to him, the Foundation which started in January 2006, has been submitting false returns to NGO Board, and that its bank accounts are operated by total strangers contrary to the provisions of the enabling Kenyan charity law and existing financial regulations.
In a letter dated May 2, 2017, Fazul dissolved the Foundation's Board of Directors, saying the Financial Reporting Centre had as well been requested to assist in investigating the Foundation’s involvement in money laundering and diversion of the donor funds.
''The Central Bank of Kenya is advised to preserve all funds held at I&M Bank and/or in any other bank in Kenya under the name Kalonzo Musyoka Foundation until further communication from this office. The Investment & Mortgages (I&M) Bank is further directed that all the officials of the Foundation are not allowed to transact for and on behalf of the Kalonzo Musyoka Foundation in any of their accounts until advised by this office,'' the letter signed by Fazul, said in part.
In view of the foregoing, Fazul indicated the Board finds that there was sufficient cause to warrant forensic investigations into the affairs of the Kalonzo Musyoka Foundation on possible cases of money laundering and diversion of donor aid.
''Subsequently, the Board has already initiated a legal process of ascertaining the level of criminal culpability of the directors of the foundation with respect to their fiduciary responsibility to the Laws of Kenya, the intended beneficiaries and the People of Kenya.''
NGO Coordination Board is also accusing the Foundation of receiving donations both in cash and in kind from foreign donors, whose identities are not revealed in its audited accounts
Kalonzo who is opposition's Nasa presidential running mate, is the Trustee and Patron of the Foundation, while his wife Pauline is listed as the Trustee and chairperson, and the third official- Treasurer, is identified as Martha Mulwa.
Kalonzo has however dismissed the allegations, saying he will address the press over the matter.