Detectives from Kenya’s Directorate of Criminal Investigations (DCI) have arrested Nairobi-based lawyer Michael Otieno Owano in connection with a Ksh.182 million fake tender scheme that defrauded an American company.
Owano, the head of Owano Michael & Co. Advocates, was apprehended on Monday at Milimani Law Courts, where he was attending a separate criminal hearing.
He is accused of being part of a syndicate that targeted a foreign investor through fictitious government tenders, leading to substantial financial losses.
The case was brought to the DCI’s attention by the owner of Underground Pipeline Rehabilitation Company, a U.S.-based firm that claims to have been tricked into paying millions for non-existent government contracts.
The complainant alleges that Owano was part of a group that lured him to Kenya under the pretense of securing government tenders.
Alvin Alexander, purportedly the CEO of Orion AST Company, initially contacted the complainant, convincing him to travel to Nairobi for a series of meetings.
At these meetings, individuals posing as government officials presented the complainant with documents detailing three supposed tenders, each offering lucrative government contracts.
The fraudulent tenders included a contract for the “supply, installation, and commissioning of Area Control Centre and Disaster Recovery System equipment”
(Tender No KCAA/032/2021-2022), another for “provision of consultancy services for the design, implementation, and maintenance of an Information Management System” (Tender No ICTA/RFP/03/2022-2022), and a third for the “supply, delivery, installation, and commissioning of Automatic Weather Stations” (Tender No MEWNR/T/18/2021-2022).
The complainant was persuaded to make payments totaling USD 1,617,200, equivalent to approximately Ksh.182,743,600, to several law firms to secure these contracts and obtain work permits necessary for the projects.
Four law firms were involved in handling the payments. Owano Michael & Co. Advocates reportedly received USD 90,000 as legal fees for the first two tenders.
Ollando Misare & Associates, LLP, collected USD 30,000 in legal fees, along with USD 262,000 and USD 285,000 as bid bonds for the third tender.
Additionally, Dennis Onyango & Company Associates received USD 200,200, purportedly for work permits for employees of Orion AST Company. Finally, Ouko Angado Co. Advocates received USD 750,000 for additional work permits.
Following these transactions, the complainant encountered months of evasive tactics and unfulfilled promises from the syndicate members, who repeatedly postponed meetings and eventually cut off contact.
A DCI spokesperson noted that this case serves as a warning to foreign investors about the risks of fraudulent schemes targeting those unfamiliar with local systems, reiterating the agency’s commitment to addressing such crimes.
Detectives tracked down Owano, who reportedly has a history of legal issues linked to fraud, and he was processed for arraignment.
However, he was later released on cash bail while the Office of the Director of Public Prosecutions (ODPP) reviews the case for formal charges.
The complainant, frustrated by months of delays and deception, eventually reported the incident to the DCI, leading to an in-depth investigation into the scam.
The DCI hopes that Owano’s arrest will help uncover the full extent of the syndicate involved in the scheme and serve as a deterrent to others engaging in similar fraudulent activities.
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