State officials in court over Sh5 billion lost in maize scandal

Director of Public Prosecution Noordin Haji

Officials of a State agency spent Sh5 billion above what had been budgeted for to purchase maize from farmers, a court has heard.

Director of Public Prosecutions Noordin Haji told a magistrate's court yesterday that the Strategic Food Reserve Oversight Board (SFROB) had planned to spend Sh6 billion to buy maize from farmers for the financial year 2017/2018, but the amount went up to Sh11 billion.

“An expenditure of Sh5.6 billion which was beyond the approved budget was incurred while purchasing white maize under the strategic food reserve fund," said Mr Haji in a statement read by senior prosecution counsel Henry Kinyanjui before Chief Magistrate Teresiah Murigi .

"This was done without the approval of the SFROB and in contravention of the Public Finance Management Act”

The prosecution claimed there was a plot between State officials and maize traders to steal from taxpayers.

Ministry guidelines

The revelations were made in a case where Agriculture Principal Secretary Richard Lesiyampe and former National Cereals and Produce Board (NCPB) boss Newton Terer are charged with graft.

Both are facing accusations relating to the loss of Sh5.6 billion where genuine farmers are said to have lost out to cartels.

Lesiyampe and Terer are charged alongside 16 others, including NCPB’s Finance Officer Cornel Kiprotich.

“Maize traders who were not farmers fraudulently acquired public property totalling Sh468 million through irregular supply of maize from the NCPB Eldoret depot, being funds intended to benefit registered and vetted farmers,” said Mr Kinyanjui.

Francis Anyona, a State witness, was put to task by the defence to explain whether President Uhuru Kenyatta’s directive for purchase of maize required those who supplied maize to be vetted.

According to the defence, the President’s concern was about food security. He did not say who should and shouldn't supply the maize.

The case continues today.