Court orders Koech to repay Sh18.5m to Kemri

By Wahome ThukuThe High Court has ordered a former parastatal chief to pay back Sh18.5 million which he transferred from the organisation into his private accounts.The former Kenya Medical Research Institute (Kemri) managing director Dr Davy Koech was ordered to repay the money following an application by the Kenya Anti Corruption Commission (Kacc).And the ruling by Lady Justice Kalpana Rawal could puncture a big hole in a criminal case on the same matter pending before a magistrate court in Nairobi.But the ruling could now med fences between judge Rawal and the KACC. Since February the commission led by its director Patrick Lumumba has been critical of a judgement in which Rawal held that KACC could not compel individuals to declare their wealth.Koech is said to have irregularly transferred more than Sh19.3 million at three different times from Kemri account to his private organisation African Medical Services Trust (Amset) between August and December 2006.The money was transferred under Koech’s personal instructions from Kemri account held in Standard Chartered Bank in Kisumu to Amset accounts at the bank in Yaya Centre branch, Nairobi.Former Kenya Medical Research Institute (Kemri) managing director Dr Davy KoechIn 2009, he was arrested and charged with several counts of abuse of office before a Nairobi court. He is still being tried in that case but on August 16, last year the KACC filed a civil application at the High Court to have him ordered to repay the money.The commission claimed the money was fraudulently and unilaterally converted to personal use.Koech denied the allegations maintaining that the transactions were regular. He claimed Kemri had a collaborative agreement with Amset in conducting scientific research work. He argued that Amset funded some projects on behalf of Kemri and had to be refunded."Once in a while Kemri was expected to reciprocate the good gesture from Amset," he had said. Koech insisted that the issues raised in the suit were the same ones in the criminal case filed in 2009 and the application should be dismissed.Judge Rawal said Koech had not proved any collaboration between the two organisations as he claimed. Instead, KACC had proved that he could have operated accounts of both organisations as a sole signatory."The amounts transferred to Amset accounts under the defendants written instructions are to any standard not small and can not be expected to be transferred from Government Institution Funds without any documents in support thereof," she said.The judge observed that Koech raised three different explanations at different times. First on inquiry by international donors he explained that it was a mix-up and promised to refund the money.When KACC filed the suit he explained brought in the collaborative argument between the two organisations. Later he said it was an issue of borrowing money from one account to another. Justice Rawal said attempt by Koech to regularise the actions months later could not justify the irregularity."It’s not in doubt that the money was transferred…which under the circumstances could be taken as misappropriation or conversion by the defendant," Rawal held.She said Koech was instrumental to the transactions without authority and without following procedure and was liable to refund the money."The case before me is not a criminal matter where the accused is entitled to keep silence. This is a civil matter and the course expects the explanation and justifiable defence from the defendant," she said adding that Koech had no defence.

Court orders Koech to repay Sh18.5m to Kemri

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Court orders Koech to repay Sh18.5m to Kemri

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