CHARLESTON, CMC – United States authorities have concluded a long-term investigation with the unsealing of an indictment within the District of South Carolina, charging two overseas nationals, together with a Guyanese nationwide, with conspiring to divert U.S.-funded international well being commodities illegally.
The authorities said that Eric Ndungu Mwangi, 40, a Kenyan nationwide, and Davendra Rampersaud, 42, a Guyanese nationwide, together with their related companies, had been charged in a 2021 superseding indictment introduced by a federal grand jury within the District of South Carolina. They are saying the superseding indictment was initially filed beneath seal to guard the continuing investigation.
The investigation, led by the Workplace of the Inspector Basic for the US Company for Worldwide Growth (USAID), targeted on the roughly $ 650 million USAID-funded KEMSA Medical Commodities Programme (MCP).
The aim of KEMSA MCP was to determine and function a protected, safe, dependable, and sustainable provide chain administration system for HIV/AIDS commodities wanted to supply care and remedy of individuals with HIV/AIDS in Kenya, and to help the warehousing and distribution of choose household planning, vitamin, and malaria commodities.
Starting in 2014, Mwangi and his firm, Linear Diagnostics (LD), systematically stole HIV check kits and different commodities supposed for KEMSA. The stolen items discovered a purchaser in Rampersaud and his Guyanese firm, Caribbean Medical Provides, Inc. (CMS).
In 2015, Rampersaud fraudulently secured a “Letter of Authority” to function as a certified distributor, permitting him to safe a profitable, sole-source contract with the Guyana Ministry of Well being for the merchandise he was buying illegally.
Between 2015 and 2019, Rampersaud paid Mwangi over US$177,000 for the diverted medical provides, together with the stolen, USAID-funded HIV check kits meant for Kenya. Rampersaud then profited once more by promoting these stolen well being commodities to the Guyanese authorities. He and his firm additionally acquired and bought check kits stolen from one other separate USAID programme.
“This was an extremely difficult investigation, spanning years and an ocean,” mentioned US Lawyer Bryan Stirling for the District of South Carolina, including, “these defendants jeopardized a significant public well being mission and triggered a big loss to the American taxpayers”.
In February 2021, Kenyan authorities arrested Mwangi on prices referring to theft and fraud. He’s at the moment awaiting trial in Kenya. On the American prices, Mwangi faces as much as 20 years on numerous counts, fines, and a time period of supervised launch.
In January 2023, Rampersaud was arrested on prices arising from the superseding indictment when he flew into Miami, United States, throughout a layover whereas making an attempt to journey again to Guyana.
He was transported to Charleston, South Carolina, and pleaded responsible to conspiracy and to stealing or changing well being commodities that USAID paid for as a part of a well being care profit. He was sentenced by United States District Choose Richard M. Gergel and acquired credit score for time served. He was moreover sentenced to a few years of supervised launch and ordered to pay a high quality of US$84,000.
