Nine people have been arraigned at the Milimani Law Courts over allegations surrounding the loss of Ksh1,569,582,338.20 from the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme.
The suspects were arrested by the Ethics and Anti-Corruption Commission (EACC) following investigations into the alleged fraudulent disbursement of funds from the National Treasury Development Account.
The PROFIT Programme was implemented by the National Treasury with funding from the International Fund for Agricultural Development (IFAD).
Among those arraigned is John Nguge Kabutha, the programme’s coordinator.
The other suspects are 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, Briggs Agencies and Green Basil Agencies; and Brian Kiprop Chepkarat, proprietor of El Konyinta Technologies.
Also before the court 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 suspects face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences.
Court grants varying bail terms
The court released the suspects on different bond and cash bail conditions.
Kabutha was granted a Ksh10 million bond with one surety of a similar amount, or Ksh5 million cash bail.
Moturi was granted a Ksh5 million bond or Ksh2 million cash bail, while Muriithi was given similar terms.
Oroni was granted a Ksh20 million bond or Ksh10 million cash bail, while Brian Kiprop Chepkarat was granted a Ksh10 million bond or Ksh5 million cash bail.
James Omwodo was granted a Ksh5 million bond or Ksh2 million cash bail.
Cates was granted a Ksh1 million bond or Ksh300,000 cash bail.
Kamau was initially granted a Ksh5 million bond or Ksh2 million cash bail, before the cash bail requirement was later varied to Ksh1 million.
The EACC says its investigations established that the Ksh1.57 billion was allegedly channelled to 23 private entities, made up of 15 business names and eight companies, for goods and services the Commission says were never supplied or provided.
Investigators further alleged that programme officials relied on false and forged documents to account for the funds and opened an unauthorised Kenya Commercial Bank account in the name of the PROFIT Programme.
According to the EACC, Ksh175 million passed through the account and was allegedly laundered and embezzled, with a substantial amount subsequently withdrawn in cash.
The Commission has also said its investigators established financial links between programme officials and some of the private entities that received the funds.
The EACC said it will pursue the recovery and forfeiture of public funds and assets established to have been acquired through corrupt conduct or other unlawful means.
