A Cabinet Secretary’s mother is among those facing prosecution over a Sh564 million controversial supply deal involving the National Cereals and Produce Board.
Director of Public Prosecution Keriako Tobiko has recommended the prosecution of Grace Sarapay Wakhungu, the mother of Environment Cabinet Secretary Judy Wakhungu, and Sirisia MP Major (Rtd) John Waluke who are the directors of Erad Supplies & General Contractors. He wants them to be charged with forgery and fraudulent acquisition of public property.
“I have gone through the Ethics and Anti Corruption Commission (EACC) files and I am satisfied and I have accepted there is sufficient evidence. I have made recommendations and communicated the same to them to proceed with the case,” said Tobiko.
EACC Deputy CEO Michael Mubea confirmed that the commission had indeed forwarded the files to the DPP.
“We had handed the file to the DPP. I am currently on holiday and am not sure if his recommendations have reached our office. I will follow it up when I get back,” said Mubea.
In 2004, Erad Supplies & General Contractors was contracted by NCPB alongside five others firms to supply NCPB with 40,000 tonnes of maize at Sh20,000 ($229) per tonne. The Ministry of Agriculture had then wanted to import maize to boost the country’s grain reserves that had been depleted following drought. However, the ministry later terminated the Erad contract after it failed to deliver the maize, even though the firm had claimed it would import grain from Ethiopia.
The company, whose other director was the late businessman Jacob Juma, sued NCPB for breach of contract and was awarded a Sh564 million settlement. Efforts by NCPB to appeal were not fruitful and the Court of Appeal ruled that NCPB must pay Erad Supplies.
NCPB paid part of the Erad’s Sh564 million settlement and so the firm subsequently secured a court order to sell off the board’s assets over an outstanding debt of Sh267 million.
It then attached NCPB’s assets worth Sh297 million, including seven of the parastatal’s vehicles.
