Senior Treasury Officials Among 9 Arrested in Ksh1.57 Billion Scandal
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The Ethics and Anti-Corruption Commission (EACC) has arrested nine suspects over the alleged embezzlement and fraudulent disbursement of Ksh1.57 billion under the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme.
In a statement on Tuesday, August 18, the agency said the programme was implemented by the National Treasury with funding from the International Fund for Agricultural Development (IFAD).
"The Ethics and Anti-Corruption Commission (EACC) has arrested nine (9) suspects in connection with the alleged embezzlement and fraudulent disbursement of Ksh1,569,582,338.20 under the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme, implemented by the National Treasury with funding from the International Fund for Agricultural Development (IFAD)," the statement read.
According to EACC, investigations established that Ksh1.569 billion was fraudulently disbursed from the National Treasury Development Account to the PROFIT Programme before being channelled to 23 private entities, 15 business names and eight companies.
The agency said payments were allegedly made for goods and services that were never supplied or rendered.
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"The investigations further established that programme officials used false and forged documents to account for the funds and opened an unauthorized KCB Bank account in the name of the PROFIT Programme, through which Ksh175 million was received, laundered and embezzled, with a substantial portion withdrawn in cash," the statement added.
EACC further said its investigators established financial connections between programme officials and some of the private entities that received the funds.
"Investigators also established financial links between programme officials and some of the private entities that received the funds, in apparent contravention of public financial management and accountability requirements," the statement further read.
EACC said investigations were completed and the inquiry file was forwarded to the Director of Public Prosecutions (DPP), who approved the prosecution of 20 public officials, companies and company directors.
"Upon conclusion of investigations, the Commission forwarded the inquiry file to the Director of Public Prosecutions (DPP), who approved the prosecution of 20 public officials, companies and company directors.
"The suspects face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences," the statement noted.
According to EACC, among those arrested are PROFIT Programme Coordinator John Ngure Kabutha, National Treasury Head of Accounting Unit Namwel Moturi Motanya and Senior Accountant John Maina Muriithi.
The other suspects are Gladys Juliet Oroni alias Gladys Juliet, proprietor of Mawindo Enterprises, Brigs Agencies and Green Basil Agencies; Brian Kiprop Chepkarat, proprietor of El Konyinta Technologies; Ian Kwemoi Chepkarat, director of 020 Investments Limited and Vidi Vici LTD; Josephat Kamau Kamoshe, director of Blue Dart Agencies Limited; James Omwodo Ndai, proprietor of Ednas Agencies, Prozepp Technologies and Steeren Enterprises; and Jimmy Carter Odoyo Osodo, proprietor of Cadnic Investments.
The nine suspects are expected to be arraigned before the Milimani Law Courts on Wednesday, August 19.
EACC has also directed 11 other suspects to immediately present themselves at the EACC Integrity Centre in Nairobi or the nearest EACC office for processing.
They include PROFIT Programme Accountant Billy Otieno Obango alias Billy Obango; Auma Ritah Otieno, proprietor of Ritasshell Enterprises; Paul Mukasiali Shilaho, proprietor of Kemula Agencies and Shilal Supplies; Susan Wangari Gathiaka, proprietor of Maxtor Supplies and Graybar Distributors; Erick Otieno Achila, proprietor of Dangzerina Enterprises; Miriam Roseline Obinda, Fredrick Nyadhe Obindah and Brown Muyenyi Agade, all directors of Laudrups Kenya Ltd; Hilda Ndinda Ngava, director of Kikwetu Holdings Limited; Charles Cheruiyot, director of Kaplan Logistics Limited; and Jackline Kagai Saisi, director of Jarods Agency Limited.
EACC said it will also pursue the recovery of public funds and assets allegedly acquired through corrupt or other unlawful means.
"In addition to the criminal proceedings, the Commission will pursue the recovery and forfeiture of public funds and assets established to have been acquired through corrupt conduct or other unlawful means," the statement concluded.
Elsewhere, this comes days after EACC announced the relocation of its North Rift Regional Office in Eldoret to a new office space.
In a notice on Thursday, August 13, the commission said the office has moved from Imperial Plaza, Block A, to Legacy Court on the 3rd Floor, located off Uganda Road in Eldoret.
According to the notice, the new office is situated right next door to the previous location, with the same compound and the same entry and exit points remaining in use.
Reporting originally appeared via Nairobi Leo. Read the full source for additional context.