A court has frozen properties of an employee of the Prisons Department accused of fraudulently pocketing Sh257 million, as investigations into an alleged Sh450 million corruption scandal continue.
The Ethics and Anti-Corruption Commission (EACC) obtained orders to have properties worth Sh87 million belonging to Mr Eric Kipkurui Mutai frozen as it investigates payments for goods it says were never supplied.
The High Court yesterday allowed the EACC to seize Mr Mutai’s three properties worth Sh57 million and seven cars worth Sh30 million pending the conclusion of investigations.
The EACC says in court papers that the suspect against whom the orders were issued received Sh257 million through seven companies registered between 2012 and 2016.
“Preliminary investigations have also established that the sum aforesaid was embezzled through fictitious contracts for supply of food and rations to the State Department of Corrections, which goods were never supplied,” EACC says in court papers.
According to the agency, Mr Mutai offers various services to the State department through his companies known as Unique Suppliers, Homex Logistics Enterprises and Hygienic Ventures.
The orders issued by Justice Esther Maina allow the EACC to seize the seven vehicles and three land parcels in Nairobi, Kisii and Kericho.
The EACC alleges that Mr Mutai received approximately Sh270 million through seven business entities in relation to which he is registered as the sole proprietor.
The firms were incorporated and registered between 2012 and 2016 while the bank accounts that received the money were opened in 2016 and 2017.
The money was processed by the State department through the IFMIS system, the court papers further indicate.
The entities are named as Facton Logistics Enterprises, Nerimas General Agencies, Trechis Services Limited, White Unicorn Logistics, Unique Suppliers, Homex Logistics Enterprises and Hygienic Ventures.
Investigations, however, revealed that the properties were purchased and registered in the names of third parties, the EACC told the court.
"The seven enterprises were the conduits for embezzlement/fraudulent acquisition of Sh257 million from the State Department," says the EACC.
The documents that formed the basis of the payments were obtained from Mr Mutai, who used the money to purchase the plots and vehicles.
"The properties so purchased constitute proceeds of corrupt conduct or corruption, which EACC is mandated to seek recovery of," said investigator Diana Kenduiwa.
Urging the court to issue the freeze orders, she said the EACC was apprehensive that in light of the ongoing investigations, the businessperson might dispose of or transfer the assets.
The orders have been granted for a period of six months. The case will be mentioned on October 25, 2022 to confirm the status of investigations.
