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Kenyan mining audit shows massive corruption

Kenyan mining
cabinet secretary
Najib Balala
Nairobi, Kenya — 09 October 2013 – A special investigative report by the task force set up in Kenya in August to look into the issue of mining licences issued this year has revealed massive irregularities.

The interim report “’ ordered by mining cabinet secretary Najib Balala “’ has shown that some of the companies issued with mining licences this year had not even been registered and had no official business names, reports allAfrica.com.

“In some instances, licences were issued to entities that at the time of application were not incorporated and possessed neither a certificate of incorporation nor a business name registration,” stated the report.

“Some licences were issued even though financial capability was not demonstrated by the applicant, and in some instances no financial documents were provided to support the applications, as required by law.”

In August, Balala ordered for a review of all the licences issued from January, and cancelled 43 licences that had been issued from March, noting that the rush to issue licenses during the transition period when a new government was taking over was very suspicious. He said it was questionable the way some individuals had been issued with mining licences yet their exploration and financial capabilities had not been proven.  

Out of the 43 companies whose licences had been revoked by Balala, the report said only 28 had been received “’ the rest were at various stages of consideration. The task force investigating the matter found that in some cases, the law had been blatantly flouted.

“Whereas possession of a valid prospecting right is a requirement for the issuance of exclusive prospecting licences and special licences, some licences had been issued where the applicants did not have the valid documentation,” said the report.    
The task force, which is chaired by lawyer Mohamed Nyaoga, is scheduled to issue a complete report within 60 days, and will also be required to recommend measures for developing processes to comply effectively with the licensing procedures.    

After reviewing licences issued this year, Balala said he would authorise the task force to start investigations into the other licenses issued between 2003 to end 2012.

Source: allAfrica.com. For more information, click here.