A federal investigation has resulted in the indictment of two foreign nationals and the conviction of one for conspiring to divert U.S.-funded medical supplies intended for Kenya. The charges stem from a scheme involving HIV test kits and other commodities supplied through the Kenya Medical Supplies Authority (KEMSA), which was funded by a $650 million program administered by the U.S. Agency for International Development (USAID).
According to authorities, Eric Ndungu Mwangi, a Kenyan national, used his company Linear Diagnostics to steal medical commodities meant for KEMSA beginning in 2014. These goods were then sold to Davendra Rampersaud, a Guyanese national, who operated Caribbean Medical Supplies, Inc. In 2015, Rampersaud obtained authorization as a distributor and secured an exclusive contract with Guyana’s Ministry of Health using these stolen products.
Between 2015 and 2019, Rampersaud paid more than $177,000 to Mwangi for the diverted supplies before reselling them at a profit to the Guyanese government. Authorities say that Rampersaud also dealt in test kits stolen from another USAID program.
“This was an incredibly complicated investigation, spanning years and an ocean,” said U.S. Attorney Bryan Stirling for the District of South Carolina “These defendants jeopardized a vital public health mission and caused a significant loss to the American taxpayers.”
Mwangi was arrested by Kenyan authorities in February 2021 on theft and fraud charges related to this case; he awaits trial in Kenya but faces up to 20 years on American charges if convicted.
Rampersaud was apprehended during a layover in Miami in January 2023 while returning to Guyana. He later pleaded guilty in federal court to conspiracy and theft or conversion of USAID-funded health commodities. He received credit for time served as well as three years of supervised release and an $84,000 fine.
The case was investigated by USAID’s Office of Inspector General with assistance from several agencies including the Department of State’s Regional Security Offices in Nairobi and Georgetown, U.S. Customs and Border Protection, Homeland Security Investigations, and others. Assistant U.S. Attorneys Sean Kittrell and Dean Secor prosecuted the case.
Authorities emphasized that all charges are accusations until proven beyond reasonable doubt.
