Traders testify in MP Onyonka's Fraud case.

Witnesses testifying in the ongoing fraud case involving Kitutu Chache South MP Richard Onyonka have admitted ownership of cheques Onyonka allegedly used to defraud Kitutu Chache constituency CDF funds.Onyonka was charged with conspiracy to defraud the public KSh 21 million on April 23, 2008, that was to be paid to Chemelil Sugar Company.

In the case that is before Principal Magistrate Thomas Obutu at a High Court sitting in Kisumu, Onyonka is alleged to have conferred a benefit of a sum of KSh21,250,637 to Mr. George Siro.The amount alleged to be Value Added Tax (VAT) which was exempted in the sale of sugar meant for the Internally Displaced Persons in Kitutu Chache Constituency. The said amount is purported to have been withheld by his CDF after allegedly purchasing sugar for his Constituents from Chemelil Sugar Company limited.

Patrick Njiru who prior to the date of alleged fraud had been doing business with Chemelil Sugar owned cheque number 310345 with the value of Sh4 million and which the prosecution had presented as one of the cheques used in the alleged fraudulent payments to the sugar company.

Njiru was visited by the anti-corruption detectives on 22 September 2011 when investigations into the alleged fraud started in Kirinyaga and asked if he could recall getting sugar from Chemelil Sugar Company.

He replied the detectives in the affirmative and explained drawing a bankers' cheque of Sh4 million from Barclays Bank which he presented to the sugar company after which he got 10,000 (50kg) bags of sugar.

Abdul Ismail a businessman based in Narok owned a cheque presented before the court by the prosecution as one used by Kitutu Chache CDF in the in the transactions at Chemelil.

Abdul, who told the court that he is in the sugar and transport business and buys sugar from nearly all millers in Kenya drew the bankers' cheque worth Sh25 million on 10 May 2008 for which he was supposed to get 350,000 bags which by the time he was testifying, he had not received.

He has however since taken the matter to court, a case which is ongoing at Kericho law court.The Chemelil Sugar Company then (2008) Marketing Manager and Communications Director George Matwere, contended that Onyonka did write to him the letter which he presented in court, and all the transactions between the company and Kitutu Chache CDF did happen.

Matwere was however hard pressed to explain to how the cheques which have been owned by individual businesspersons were used in transacting business under the Kitutu Chache CDF account.

In supporting the allegation that indeed Kitutu Chache CDF account actually existed and transacted business with Chemelil Sugar, Matwere told court that following the application by Onyonka for the sugar which he intended to give to the IDPs in his constituency, the company suspended sale of sugar to other traders so as to meet his (Onyanka's) which appeared to be urgent.

He could however not tell the court how much he had reserved for the 'emergency' at Kitutu Chache CDF and whether there was any communication to that effect from the Managing Director.

Testifying before the court, Jane Gathoni, former senior Kenya Revenue Authority (KRA) employee in the domestic revenue department told the court that an application for VAT withholding the certificate allegedly by Kitutu Chache CDF was incomplete, meaning the KRA could not issue the certificate.

In the Sugar Purchase Authorization Forms (SPAF) which were presented in court by the prosecution as evidence of the transactions, a VAT withholding certificate allegedly from the KRA was attached together with other documents in all the 11 alleged transactions.

Gathoni could also not remember whoever did the application for the VAT withholding certificate which-which was done at the KRA head office, and not their branch in Kisii which was nearer.

The next hearing of the case will be on 16 January 2016