Main suspect in the the fake tender diddle that saw an American firm lose over Ksh 182 million to a ring of scammers. PHOTO:DCI
A law firm associated with former Migori senatorial aspirant and rising legal figure Willies Misare, Ollando Misare & Associates, LLP, is under investigation in connection with a massive fraud that defrauded an American company of over Ksh 182 million (approximately USD 1.6 million). The scandal has raised serious questions about the integrity of Kenya’s legal and business sectors, particularly regarding the involvement of law firms in facilitating fraudulent activities.
The case revolves around a series of fake tenders that were used to deceive the American-based Underground Pipeline Rehabilitation Company into making substantial payments for non-existent projects. The fraudulent scheme involved multiple law firms, including Ollando Misare & Associates, directly tied to Misare, who is also a prominent political figure. The firm allegedly received significant payments, including USD 30,000 in legal fees and USD 547,000 in bid bonds related to a fictitious government contract.
Investigators from the Operations Support Unit arrested Michael Otieno Owano, an advocate from Owano Michael & Co. Advocates, who is believed to be a central figure in the scam. Owano, with a history of fraudulent activities, was apprehended at Milimani Law Courts during a different legal proceeding. He was later released on cash bail while the investigation continues.
The fraudulent activity traces back to 2022, when the victim, persuaded by Alvin Alexander, the self-styled CEO of a non-existent company called Orion AST, traveled to Kenya. Alexander and his associates presented three fake tenders from Kenyan government agencies:
- Tender No KCAA/032/2021-2022: Supply, Installation, and Commissioning of Area Control Centre and Disaster Recovery System Equipment.
- Tender No ICTA/RFP/03/2022-2022: Consultancy Services for the Design, Implementation, and Maintenance of an Information Management System (ISMS).
- Tender No MEWNR/T/18/2021-2022: Supply, Delivery, Installation, and Commissioning of Automatic Weather Stations (AWS).
Under the false belief that these were legitimate contracts, the victim was instructed to pay large sums for legal services, bid bonds, and work permits. A total of USD 1,617,200 (Ksh 182,743,600) was transferred through several escrow accounts controlled by law firms, including Ollando Misare & Associates, Owano Michael & Co. Advocates, Dennis Onyango & Co. Advocates, and Ouko Angado Co. Advocates. The funds were supposedly meant for facilitating permits and bonds, but the tenders never materialized.
Despite multiple attempts by the victim to contact the fraudsters and finalize the deals, communication broke down, and the perpetrators became unresponsive. After months of delays, the victim filed a complaint with the Directorate of Criminal Investigations (DCI), which initiated an investigation.
The connection of Ollando Misare & Associates to this scandal raises ethical concerns, particularly given the law firm’s association with Willies Misare, a former senatorial candidate. While Misare has not been arrested or formally implicated, the involvement of his firm in a high-profile fraud raises serious questions. Could a law firm, especially one tied to a rising political figure, become involved in such fraudulent activity?
The case underscores a systemic issue within Kenya’s legal and business environments. Law firms, entrusted with safeguarding legal integrity, have been exploited in this scam. The ease with which fraudsters used legal mechanisms to facilitate the crime points to a vulnerability within Kenya’s tendering system, demanding stronger oversight and reform.
International businesses engaging in Kenya’s tendering and contracting processes should exercise caution, particularly in sectors prone to corruption. This case serves as a call for the government to take immediate steps to safeguard procurement processes and enforce accountability within the legal sector.
For Ollando Misare & Associates, the firm must fully cooperate with the authorities to clarify its role in the scandal. Willies Misare, as the principal figure, will need to demonstrate that the activities of his firm were unaware to him. This case poses a significant challenge to Misare’s political and legal future. His involvement, whether direct or indirect, could dramatically impact his reputation.
The broader implications of this case could shape future regulations and ethical standards within Kenya’s legal community. If it is revealed that legal professionals were complicit in fraudulent activities, it could further erode public trust in the legal and business sectors, both domestically and internationally.
Kenya now faces a crucial test of its commitment to transparency and accountability. This case should prompt the government to implement stronger regulations in the legal profession, tighter controls over government tenders, and more robust enforcement of anti-corruption measures. Only through such reforms can Kenya rebuild trust in its business environment and ensure law firms operate with the highest ethical standards.
In response, Misare refuted claims that his firm is directly implicated in the scandal.
Misare, speaking exclusively on the phone, categorically denied any involvement in the fraud, maintaining that neither the Directorate of Criminal Investigations (DCI) nor any other investigative body had formally summoned any of his associates to record statements related to the case.
“We are yet to be furnished with an official summon, and it doesn’t add up when the DCI goes ahead and publishes such incriminating information without clear facts,” Misare stated. “We have not been contacted by any authorities or received any official notification. It is important to note that the facts in this case are yet to be fully established, and we will cooperate with any official investigation should it arise.”
Misare’s comments come after reports surfaced suggesting his firm’s involvement in the fraudulent scheme, where an American company was allegedly defrauded of over Ksh 182 million (approximately USD 1.6 million) through fake government tenders. The law firm is said to have processed substantial payments related to the fictitious tenders, including USD 30,000 in legal fees and USD 547,000 in bid bonds.
However, Misare emphasized that his firm has not been officially implicated in the scam and that the ongoing investigation has not resulted in any formal charges or summons directed towards him or his team.
“We are committed to maintaining the highest ethical standards in our legal practice, and we trust that the truth will come to light once all facts are fully examined,” he added.
The case remains under investigation, with detectives continuing to probe the complex network behind the fraudulent tenders. Misare’s firm, while currently under scrutiny, maintains its position of innocence, awaiting further developments in the case.
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