Top port managers charged with swindling Sh700 million from KPA pension scheme

Some of the suspects from left:Freddrick Otieno, Maurice Milimu, Joan Zawadi, Renson Thoya,Harry John Paul and Joy Kavutsi Mudavadi at the Mombasa Court in Mombasa County on Thursday 20th December 2018, where they are charged with fraud and conspiracy. [Photo:Kelvin Karani]

Top managers and a former director of Kenya Ports Authority (KPA) have been charged with fraud.

The officials have been accused of swindling KPA Retirement Benefit Scheme (KPARBS) of Sh700 million.

The suspects, however, did not take plea after Mombasa Principal Magistrate Charles Ndegwa postponed the case to February 14 next year.

Plea bargain

Those accused are KPA head of audit Fredrick Otieno Oyugi, a former chief administrator for the scheme Maurice Milimu Amahwa, former Dock Workers Union Shopsteward Renson Thoya Juma and former KPA director Joy Kavusti Mudavadi alias Joy Asiema.

Also enjoined in the case are KPA scheme trustee Joan Zawadi Karema, business personalities Jane Njeri Karanja and Ephraim Maina Rwingo, as well as officials from Selina Consultant company and Kikambala Development Company.

The defence raised a preliminary objection, arguing that the Ethics and Anti-Corruption Commission (EACC) was insisting on following the court process, whereas the parties involved - the accused and the scheme - had decided to settle the matter out of court.

A defence lawyer Gikandi Ngibuini asked the court to defer the plea, so that the defence can get time to file a constitutional suit at the High Court, to determine whether it was right for EACC to prefer criminal charges.

That is even when the parties have agreed to settle the matter out of court.

But prosecutor Alex Jamii opposed Ngibuini’s application, saying that it had no merit in law.

Mr Jamii insisted the suspects should take plea first, since such an agreement between the parties could not stop prosecution.

“The accused must take plea first before entering into any bargain,” Jamii said.

He further argued that the decision to settle the matter out of court was purely based on how KPA can recover its stolen money.

“It has nothing to do with barring the state from preferring criminal charges on the accused.

“The suspects have not even refunded the money which they stole before opposing charges,” Jamii said.

Gikandi accused Jamii of being unfair to the accused by insisting to prefer criminal charges against them, even when both parties had entered into a consent not to proceed with criminal charges.

Unlawful approval

The accused are jointly charged that between October 24 and December 2014 in Mombasa, being trustees of Kenya Ports Authority Retirement Benefit Scheme, conspired to defraud the scheme of Sh700 million by unlawfully approving the purchase of 100 acres of land in Kikambala near Vipingo, Kilifi.

The suspects face another charge which states that between December 1 and 4, 2014 in Mombasa, being trustees of the scheme, used their office to engage the services of Hallmark Valuers company at a cost of Sh556,000 without following the proper laid down procurement processes.