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As of December, 2010, TEMAK has been officially de-registered by the NGOs Coordination Board.

To verify, go to the NGOs Coordination Board website at http://www.ngobureau.or.ke/Dereg_notice.aspx and type the word "Teenage" into the search box labeled "NGO Name."

Below is a copy of the report issued in April, 2010, of the investigation by the NGOs Co-ordination Board of Kenya into the corrupt and fraudulent activities of TEMAK and its directors, Joab Othatcher and Philomena Mashaka.  

The NGOs Co-ordination Board has recommended de-registration of TEMAK, reconstitution of an entirely new board, never allowing Othatcher or Mashaka to ever hold an office in any NGO in Kenya, a full audit of bank accounts, to sue TEMAK and Othatcher for misappropriation/embezzlement of funds, and alerting Kenya Revenue Authority to institute an investigation into recovering taxes due on profits illegally distributed to Othatcher and Mashaka.

The wheels of justice may grind slowly in Kenya, but they do grind.  In addition to de-registration by the NGOs Co-ordination Board, and being barred for life from holding office in any NGO, Joab and Philomena are now under investigation for criminal activities by the Kenya Central Bank’s anti-fraud investigation unit.

The alarming part of it is that apparently many international donors are either still unconvinced or are unaware of the blatant corruption at TEMAK, and are still funding activities there.

Please, if you know of someone who needs to know this information, please inform them so that they will no longer be deceived.

Also, if you know of anyone who has sent money to TEMAK through any bank other than Credit Suisse or I&M Bank, please respond with an email to info@temak.org with that information, so that the information may be forwarded on to the investigators of the Central Bank anti-fraud unit.  Or, you may contact Thomas Somba, Investigator with Kenya Central Bank anti-fraud unit, directly at 254722892436 or tomsomba@yahoo.com.  It is highly suspected that Othatcher, upon knowing of the investigations into his activities, has opened other channels for revenues to come to him.  But, without knowledge of those bank accounts, they cannot be investigated.

Joab Othatcher has recently purchased a house in Kisumu.  It would be interesting to know where a man who calls himself “a missionary in his own country,” and who claims to receive no salary from TEMAK, and has no known source of income, could get the money to purchase a house.  ???

This kind of fraud, perpetrated in the name of God and helping poor women and children, is very damaging to the legitimate NGOs in Kenya that are struggling to meet the needs of the Kenyan people.  All of Kenya suffers when the strong and corrupt prey upon the weak and poor.

Surely, Othatcher will eventually be brought to justice by the Kenyan justice system.  In the meantime, well-meaning donors should have this information.


If you have further information on the activities of TEMAK and Othatcher and Mashaka, or to verify the authenticity of the report copied below, contact the lead NGO investigator, Henry Ochido at hochido@ngobureau.or.ke   

If you have information regarding financial transactions with TEMAK or Othatcher, the lead investigator with the Central Bank of Kenya anti-fraud unit invites you to share that information with him.  Tom Somba can be contacted at 254722892436 or at tomsomba@yahoo.com
 

 

 

 

 

NGOs CO-ORDINATION BOARD

REPORT OF THE FINDINGS OF AN INVESTIGATION OF

TEENAGE MOTHERS & GIRLS ASSOCIATION OF KENYA

(TEMAK)

APRIL 2010

 

 

 

 

 

Investigation Team

Henry Otieno Ochido – Team Leader

Rahma Jillo

Douglas Owino

Lindon Otieno

Bernard Bwoma

John Were

 

1.0  BACKGROUND

 

 

1.1 Registration:

 

Teenage Mothers & Girls Association of Kenya (TEMAK) was first registered as an

NGO under the NGOs Co-ordination Act of 1990 (herein referred to as ‘The NGOs Act’) in 1999 and issued with registration certificate number OP.218/051/96146/1043.


TEMAK’s main objective is: to provide Primary Health Care, Prevention of AIDS

Control and Community Care. TEMAK was, however, de-registered in 2003 for non

compliance with the NGOs Act and its attendant regulation.

 

 

 

1.2 Governance History:

 

TEMAKs registered officials at the time of registration were:

 

1. Philomena Mashaka Dali Executive Director/Chairperson

2. Joab Piemo Othatcher Programmes Director/Secretary

3. Pamela Ayoo Menya Projects Officer/Treasurer

 

 

TEMAK applied for re-registration on the September 28, 2008 which was granted on the October 6, 2008 upon meeting the requirements. In April 2008, the Director of TEMAK applied to the NGOs Co-ordination Board to recommend a Mr. Wayne Maclemore to be issued with work permit. The Director further indicated in his letter, that the said Maclemore was a Board member of the organization.

 

TEMAK since inception has operated without a proper Board of Directors. The

Management Team has been doubling as employees and Board members at the same time, thereby necessitating serious lack of accountability and mismanagement of the organization.

 

 

 

1.3 Last returns:

 

TEMAK last filed annual returns which were received by the Board on February 16,

2009 and audited accounts for the financial year ended 2008. There are, however,

unexplained discrepancies on the figures computed in both documents that require

further scrutiny. The audited accounts show a total Kshs. 10,370, 373 while the annual returns form indicates Kshs. 13,035,033.

 

 

 

1.4 Complaints:

 

On the May 3, 2009, the NGOs Co-ordination Board received an e-mail from one Kelly Rendek, a VSO volunteer who left after working at TEMAK for only 3 months; when her contract was supposed to run for period of 2 years. She expressed concern at the way the organization managed its affairs. Specifically, she raised issues with:

 

 

1.         The organization’s governance structure;

2.         TEMAKs apparent lack of transparency and accountability;

3.         TEMAKs financial management and internal controls;

4.         Separation of TEMAKs training centre and the craft business;

5.         Allegations of financial misconduct;

6.         Threats to personal safety.

 

 

On the March 13, 2009, the NGOs Co-ordination Board received a letter from Wayne

Maclemore referenced as, “complaints of corruption and misuse of NGO funds against TEMAK.....” this was followed with a further reminder dated 16th March, 2009. In both letters, Mr. Maclemore alleges that:

 

 

1.         The TEMAK Director had refused to account for the funds given to the organization by donors for the benefit of women and children;

2.         Misappropriation of funds with large cheques drawn in the Director's name for personal expenses/gain;

3.         Using the organization funds to pay for the school fees of the Director’s 2 children enrolled in private schools (Hillcrest and St. Patrick’s Hill school) at a cost of Kshs. 800,000;

4.         The Director using organization funds to pay for school trips to the USA for his son to the tune of Kshs. 291,000;

5.         The Director continually intimidating the organization’s staff and withholding their salaries;

6.         Refusal by the Director to settle the organization’s liabilities;

 

 

A letter written by Wayne Maclemore to the Kisumu Officer Commanding Police

Division (OCPD) and dated June 9, 2009 alleges that the TEMAK Director manipulated and misrepresented to the public, the Auditor’s report, thereby giving the organization a clean bill of health. A further letter dated March 6, 2009 from the Director of TEMAK requested the NGOs Co-ordination Board to withdraw Mr. Maclemore’s work permit as a volunteer for the organization.

 



A former Finance and Administration Manager, a Mr. Martin Otieno Odero wrote to
the NGOs Co-ordination Board vide email dated February 2, 2010 confirming andcorroborating the allegations levelled against the Director of TEMAK. The complainant further alleged that the Auditors prepared TEMAKs last audit accounts without bank statements.

 

 

In November 2009, TEMAK filed change of officials form with the NGOs Co-ordination Board. Interestingly, there is only one outgoing official with three incoming officials.  On the December 22, 2009, the NGOs Co-ordination Board wrote to TEMAK’s bank directing the Manager to freeze the organizations account. TEMAK sued the NGOs Coordination Board and Credit Bank praying for orders to have their accounts unfrozen.

 

 

 

1.5 Risk Analysis:

 

The organization deals with Teenage Mothers, Children and Girls. It also provides

services to persons suffering from HIV/AIDs. This is a vulnerable group in the society

and is likely to suffer in the event that the organizations assets are lost or pilfered. The beneficiaries that receive HIV/AIDs related care will be endangered if they do not receive the requisite drugs as a result of the organization money being embezzled.

 

 

 

1.6 Findings:

 

1.         The organization has been receiving donations in cash wired into their account from donors and it would appear that there are no contracts/agreements to guide the use of the money thereby compromising accountability;

2.         That the organization has weak governance and that the CEO is in turn the Executive Treasurer meaning that the Board is not able to exercise oversight on the management, there is clearly no separation of powers in the said organization.;

3.         That there have been some questionable financial practices in the  organization. An extract of a ledger book in our possession shows cheques involving significant amounts of money drawn in the name of the CEO. There are payments for services which appear to be personal in nature made directly from the organization’s accounts;

4.         Two members of the Board of Directors (the CEO and his wife) who are also members of staff according to their own admission have been distributing to themselves 40% of the profits accruing from the organization’s handicraft business. They allege that this was approved by the Board on the basis that they provided the initial capital for the business;

5.         The organizations Auditors have provided an audit report that does not tally with information provided in form 14, possibly implying the organization did not make a full disclosure of financial information to their Auditors.

 

 

 

 

 

2.0  Recommendations:

 

1.         In light of the discrepancies/variances discovered from TEMAKs AuditedAccounts and Annual Reports, it is recommended that the NGOs Co-ordination Board should obtain a Court Order requiring TEMAK’s bank to furnish the Board with the organization’s bank statements for the last three years;

2.         The Board should seek for further Orders to be allowed to conduct forensic audit on the organization’s books of accounts to establish the real extent of the suspected fraudulent activities in the NGO;

3.         The NGOs Co-ordination Board should bar Othatcher, and the current TEMAK board members from holding offices in any NGO;

4.         The NGOs Co-ordination Board should sue TEMAK’s CEO and the Board for misappropriation/embezzlement and theft of funds meant for public benefit;

5.         The NGOs Co-ordination Board should go to court and obtain orders that will allow it to disband the current TEMAK Board and reconstitute a new board withthe help of a caretaker committee;

6.         In the alternative, the NGOs Co-ordination Board should Deregister the organization and have it handover its assets to another organization with similar objectives to continue offering similar services to the beneficiaries;

7.         The NGOs Co-ordination Board should write formally to the Kenya Revenue Authority to institute investigations in to the NGO with a view to recovering taxes due on the profits illegally distributed to Othatcher and his wife.

 

 

 

TEMAK is an NGO that deals with teenage mothers, vulnerable children, persons

suffering from HIV/AIDS and has considerable assets. From their last Annual Returns,

the organization received Kshs. 13,035,033. The organization’s failure would therefore pose a high risk to beneficiaries as well as the safety of finances and assets.

 

In light of the foregoing, the recommendations hereinabove should be dealt with

expeditiously to avert/forestall any possible risks to the beneficiaries or loss of assets.







In Kenya, to contact the Director of TEMAK, call 0722271066.

Or send email correspondence to temak@mailkisumu.com

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