Controversy Erupts Over Kickbacks in $21 Million Zambian Military Hospital Tender Linked to Nairobi Businessman Stanley Livondo
Controversy surrounds a company associated with Nairobi businessman Stanley Livondo, which is alleged to have provided kickbacks for a $21 million (Sh2.7 billion) tender awarded by Zambia’s army and Ministry of Defence for the renovation of a military hospital in Lusaka.
The Anti-Corruption Commission of Zambia is investigating Kenya’s DLS International Group Limited due to allegations that a portion of a $5.3 million (Sh683.05 million) payment made last year for the contract was subsequently transferred to the personal accounts of various private Zambian business owners and army officials.
Beyond the suspected kickbacks to Zambian officials, the anti-corruption body is scrutinizing how a newly registered company secured such a substantial taxpayer-funded contract without any prior experience in construction or security services.
The cash transfer made by the Ministry of Defence in Lusaka on August 10, 2023, was initially flagged by Nairobi’s Financial Reporting Centre (FRC), which requested DLS International to clarify the purpose of the funds deposited into its bank account.
In its defense, the company asserted it had a contract with the Zambian Ministry of Defence for supplying, installing, and equipping two hospitals, and upgrading the Maina Soko Medical Centre in Lusaka to a UN Level IV referral hospital, at a total contract value of $21.2 million.
The contract raised concerns because DLS International was incorporated in Kenya on February 21, 2023, just six months before the contract payment was made.
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Stanley Livondo, the principal owner of DLS International with 350 shares, is joined by shareholders David Kiguongo Kanja (300 shares), Simon Njoroge Ndung’u (300 shares), and Agnes Naini Walyaula (50 shares). Kanja is an architect and Ndung’u is a quantity surveyor, both recognized by the Board of Registration of Architects and Quantity Surveyors.
Details about Walyaula could not be verified by The Nation at the time of publication.
Livondo, a prominent figure for DLS International in Zambia and a frequent spokesperson at press events dismissed the corruption and money laundering allegations against his company as mere “street gossip.”
He maintained that despite DLS International’s brief existence before securing the contract, his firm fulfilled its obligations.
“There’s nothing to these claims. Yes, my company was registered in 2023, but is that a crime? I delivered everything as promised, and I don’t heed street gossip,” Livondo stated in WhatsApp messages.
However, Simon Ndung’u denied any association with DLS International, despite his name and contact details being listed in official business records.
“That is not my company, I am sorry,” he said before ending the call.
Thabo Kawana, Principal Secretary in Zambia’s Information Ministry, recently led a media tour of the Lusaka hospital and refuted the corruption allegations against DLS.
The Financial Intelligence Centre (FIC) of Zambia has highlighted the payment to DLS International in its 2023 report on money laundering and terror financing.
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The FIC report notes, “A foreign-owned company, DLS International, was incorporated in February 2023 and opened a bank account in April 2023. In June 2023, the company received a $21 million contract from Government Institution AR. By August 2023, DLS received an advance payment of $5.6 million from AR.”
The report further reveals concerns about the company’s lack of previous work experience and the direct bidding procurement process used, which did not require prior experience, raising suspicions due to DLS’s recent establishment.
The Ethics and Anti-Corruption Commission (EACC) has sent relevant documents to its Zambian counterparts following Lusaka’s request, potentially paving the way for legal action against the businessman involved.
Zambia has requested mutual legal assistance (MLA) from Kenya’s Attorney-General’s office.
“The EACC confirmed receiving a request for mutual legal assistance from Zambian authorities to aid in investigations where DLS International Group Ltd is implicated. The Commission has provided the requested information and documents,” EACC spokesperson Eric Ngumbi reported.
The MLA request has prompted the EACC to initiate its probe focusing on the money laundering aspects of DLS International’s transactions with the Zambian Defence Ministry.
“The EACC is now conducting its investigation into the money laundering elements while Zambian authorities continue their investigation into procurement and related offenses,” Ngumbi added.
Controversy Erupts Over Kickbacks in $21 Million Zambian Military Hospital Tender Linked to Nairobi Businessman Stanley Livondo
