Graft watchdog joins Sh500m National Cereals and Produce Board case

The Court of Appeal has allowed Ethics and Anti-Corruption Commission (EACC) to be enjoined in the Sh500 million dispute between National Cereals and Produce Board (NCPB) and Erad Supplies and General Contractors.

The decision was made by appellate judges Alnashir Visram, John Mwera and Kathurima M'Inoti.  The EACC claims documents used to award the maize supply company arbitration monies from the public coffers were allegedly forged.

In its application through lawyer Ben Murei, the EACC said it obtained crucial evidence recorded by South African authorities on October 29 which prove that the tender security bid papers Erad submitted to the arbitrator and courts were fake.

The anti-graft agency said the information was crucial to the appeal filed by NCPB in a bid to salvage its assets from auction.

"The evidence obtained is critical and goes to the root of the integrity of the arbitration and raises questions on whether the court process is being abused for fraudulent purpose," said Murei.

He said that the EACC is probing allegations of graft and irregularity in procurement by Erad to supply 40,000 metric tonnes of maize to NCPB.

"In particular, one of the documents on the basis of which storage charges of over Sh90 million was awarded to Erad is forged and did not emanate from the purported supplier M/S Chelsea Freight of Durban in South Africa," submitted Murei.

According to the EACC, South African authorities established that Chelsea Freight closed shop in 2013, and two of its former directors currently trading as LTD Logistics Solutions gave evidence that they neither owned a warehouse nor dealt in maize supply or handling.