Waluke in more trouble as new evidence allowed

Sirisia MP John Waluke. [Elvis Ogina, Standad]

Sirisia MP John Waluke could be in more trouble after the Court of Appeal allowed the anti-graft agency to submit fresh evidence in the Sh564 million civil dispute with the National Cereals and Produce Board.

Appellate Judges Hannah Okwengu, John Mativo and Weldon Korir said the Ethics and Anti-Corruption Commission is justified to produce the new evidence acquired from South Africa to back the case against Waluke and his company Erad Supplies Limited.

"We are persuaded that the respondents will not suffer any prejudice because they will have a chance to challenge the evidence," the judges said.

The decision was a boost for EACC and NCPB who have been battling to overturn the arbitration award of Sh297 million Waluke and his co-director at Erad Suppliers Ltd Grace Wakhungu acquired from NCPB over a maize importation dispute.

On the other side, it was a big blow for Waluke and Wakhungu who have been serving a combined 67 years in jail for fraudulently acquiring the money from NCPB.

The two were last week released on bail pending the determination of their appeal against the jail sentence in the separate criminal prosecution.

The Appellate Judges said the affidavit by EACC investigator Kipsang Sambai which contained the evidence from South Africa be admitted in court and granted Waluke and their company 15 days to file their response.

The commission is seeking to rely on the evidence which was relied on by the anti-corruption court to jail Waluke and Wakhungu for defrauding NCPB.

The dispute has been pending in the Court of Appeal since 2012.

The NCPB and EACC seek to set aside the arbitrator's award of Sh564 million made to Erad Supplies Ltd and subsequently confirmed by the High Court.

EACC said evidence was not available when the High Court considered the matter and upheld the arbitration award to Erad Supplies Ltd.

The state agencies in their appeal argue that the award, pursuant to which Erad Supplies Ltd auctioned NCPB assets and obtained a payment of over Sh297 million was fraudulent, obtained using forged documents.

They argued that the evidence obtained from South Africa shows the directors forged documents.