The Ethics and Anti-Corruption Commission (EACC) has moved to the High Court in Nairobi seeking to recover Ksh21 million allegedly embezzled by a private company.
The company, Mulwa Farm Limited, is accused of colluding with nine officials of the State Department of Correctional Services (Prisons Department) to siphon the funds from the government.
The nine include Ochoki Omaiyo Joseph, Sarah Kemunto Kerandi, James Nyang’au Gekobe, Humphrey Wende Abok, Isaac Barasa Wekesa, Moses Juma Sirengo, Joseph Kamau Mwangi, Mageto Omari Mirieri and Jack Nyariango Ogao
The nine are being investigated over alleged embezzlement and misappropriation of public funds, abuse of office, breach of trust and fraud.
According to investigations by the EACC, during the Financial Years 2016/2017, 2017/2018 and 2018/2019, Mulwa Farm Limited, whose sole director is Steven Mulwa, fraudulently and illegally received a total sum of Ksh21,697,500.00 from the State Department of Correctional Services on account of goods (food and rations) not supplied.
"A fraudulent scheme was perpetrated jointly by all of Defendants, involving making of false procurement documents including requisition forms, Local Purchase Orders (LPO), delivery notes, inspection and acceptance certificates, and Invoices which were used to support payment vouchers," EACC said.
"Payment vouchers as supported by the falsified documents were then used by the public officers at the State Department of Correctional Services to effect payments amounting Ksh21,697,500 to Mulwa Farm Limited for goods not supplied."
EACC demand notice
On August 16, 2022, EACC says it issued a demand notice to Mulwa Farm Limited and the nine officials to remit the amount. However, the defendants failed to pay back the amount as demanded by EACC prompting the commission to file a recovery suit in the High Court.
"EACC notes that despite the stringent and multiple stages of authentication and approval of payments in Government financial expenditure, cases of individual public officers embezzling huge amounts of public funds continue to thrive. This points to possible collusion, connivance or abdication of duty by accounting officers," EACC said.