EACC arrests nine over alleged Sh1.57bn fraud

EACC Chief Executive Officer Abdi Mohamud addresses journalists after visiting the grabbed land at Winam Estate in Milimani, Kisumu.  [Rodgers Otiso, Standard]

The Ethics and Anti-Corruption Commission has arrested nine people over alleged Sh1.57 billion fraud involving the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme at the National Treasury.

The arrests came after investigations into the alleged fraudulent disbursement of Sh1,569,582,338.20 from the National Treasury Development Account to the programme, which was funded by the International Fund for Agricultural Development (IFAD).

EACC Director of Investigations John Lolkoloi said on Tuesday that investigators had established that the money was subsequently channeled to 23 private entities, comprising 15 business names and eight companies, for goods and services that were never supplied.

The PROFIT programme was designed to help small scale farmers access affordable financing and was implemented between the 2013/14 and 2023/24 financial years.

According to the EACC, programme officials allegedly used false and forged documents to account for the funds.

Investigators also uncovered an unauthorized KCB bank account opened in the name of the PROFIT Programme.

The account allegedly received Sh175 million, which was later laundered and embezzled, with a substantial portion withdrawn in cash.

EACC said its investigations had also established financial links between some programme officials and private entities that received the funds, raising concerns over compliance with public financial management and accountability requirements.

The nine suspects arrested are John Ngure Kabutha, the PROFIT Programme Coordinator, Namwel Moturi Motanya, Head of the Accounting Unit at the National Treasury, John Maina Muriithi, a Senior Accountant at the National Treasury, Gladys Juliet Oroni alias Gladys Juliet, proprietor of Mawindo Enterprises, Brigs Agencies and Green Basil Agencies and Brian Kiprop Chepkarat proprietor of El Konyinta Technologies.

Others are Ian Kwemoi Chepkarat, director of O20 Investments Limited and Vidi Vici Ltd; Josephat Kamau Kamoshe, director of Blue Dart Agencies Limited; James Omwodo Ndai, proprietor of Ednas Agencies, Prozepp Technologies and Steeren Enterprises; and Jimmy Carter Odoyo Osodo, proprietor of Cadnic Investments.

The EACC said the suspects face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents.

The Commission said the investigations had been concluded and the inquiry file forwarded to the Director of Public Prosecutions, who approved the prosecution of 20 public officials, companies and company directors.

The nine arrested suspects are expected to be arraigned before the Milimani Law Courts on Wednesday, August 19.

At the same time, EACC has directed 11 other suspects to immediately report to its Integrity Centre in Nairobi or the nearest EACC office for processing.

They include Billy Otieno Obango alias Billy Obango, a programme accountant with PROFIT; Auma Ritah Otieno, proprietor of Ritashell Enterprises; Paul Mukasiali Shilaho of Kemula Agencies and Shilal Supplies; Susan Wangari Gathiaka of Maxtor Supplies and Graybar Distributors and Erick Otieno Achila of Dangzerina Enterprises.

Also required to report are Miriam Roseline Obinda, Fredrick Nyadhe Obindah and Brown Mujenyí Agade, all directors of Laudrups Kenya Ltd; Hilda Ndinda Ngava, director of Kikwetu Holdings Limited; Charles Cheruiyot, director of Kaplan Logistics Limited; and Jackline Kagai Saisi, director of Jarods Agency Limited.

The Commission said its action would not end with criminal prosecution. It will also pursue the recovery and forfeiture of public funds and assets found to have been acquired through corrupt or other unlawful means.

EACC said the case was part of its efforts to protect public resources and ensure that individuals responsible for the loss or misuse of public funds are held accountable.