Court grants bail to 11 suspects in Sh1.57bn PROFIT fraud case

A Nairobi court has freed 11 suspects, including senior Treasury officials and business owners charged over an alleged Sh1.57 billion PROFIT programme fraud.

Milimani Anti-Corruption Court Magistrate Rose Ndombi released the accused persons on varying cash bail terms ranging from Sh 300,000 to Sh 10 million after considering the seriousness of the charges, the amounts allegedly involved, and individual circumstances of each suspect.

Those freed are John Ngure Kabutha, the PROFIT Programme Coordinator; Nemwel Moturi Motanya Senior Assistant Accountant General at the National Treasury, John Maina Muriithi Senior Accountant at the National Treasury, Gladys Juliet Oroni , a businesswoman trading as Mawindo Enterprises, businessmen Brian Kiprop Chepkarat ,Ian Kwemoi Chepkarat, Jimmy Carter Odoyo Osodo, James Omwodo Ndai, Josephat Kamau Igmau Kamoshe and several companies O2O Investments Limited and Vidi Vici Investment Limited.

Kabutha was granted a Sh10 million bond or Sh5 million cash bail with one contact person. 

Former Treasury officials, Moturi and Maina were each granted a Sh5 million bond or Sh2 million cash bail.

While businesswoman Julient was granted a Sh20 million bond or Sh10 million cash bail with one contact person.

The court ordered all the accused persons to surrender their passports and barred them from leaving the court’s jurisdiction without permission.

The court also issued warrants of arrest against Treasury official Billy Otieno Obango alongside Paul Mukasiali Hiaho, Erick Otieno Achila , Miriam Roseline Obinda, Fredrick Nyadhe Obindah, Brown Mujenyi Agade, Laudrups Kenya Limited, Hilda Ndinda Ngava, Kikwetu Holdings Limited, Auma Ritah Tien, Susan Wangari, Charles Cheruiyot, Kaplan Logistics Limited, Blue Dart Agencies Limited, Jackline Kagai Saisi, Jarods Agency Limited after they failed to appear before the court for plea-taking and honor EACC summons.

The prosecution, led by State counsel Alex Akula, opposed lenient terms against the eleven suspects who were charged citing the seriousness of the alleged offences and public interest, and said it would seek 30 days to prepare a bulky evidence bundle. 

Akula also sought warrants of arrest against 17 suspects including listed as numbers 2, 14, 15, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 35 and 36.who failed to appear for plea-taking.

“As you look at the charge sheet, it looks at an elaborate scheme to loot public coffers over Sh1.57 billion,” Akula told the court.

Defence lawyers led by Edward Ooge urged the court to rely on Article 49(1)(h) of the Constitution and grant reasonable bail, saying some accused persons were retired public servants, had health conditions and were not direct beneficiaries of the alleged funds. 

Ooge said his client Moturi faced only one count and was a retired public servant suffering from chronic illnesses.

“He faces one count, count number 56 in the charge sheet. You will note, Your Honour, there is no current benefit but actions undertaken during his duty,” Ooge said.

The 11 accused persons face 121 counts of abuse of office, unlawful acquisition of public property, acquisition of proceeds of crime and money laundering over the alleged loss of Sh1,569,582,338.20 from the IFAD-funded Programme for Rural Outreach of Financial Innovation and Technology (PROFIT).

Kabutha the PROFIT Programme Coordinator, is accused of improperly authorising payments of Sh73.8 million to Mawindo Enterprises, Sh41.1 million to Brigs Agencies and Sh71.4 million to Greenbasil Agencies.

Obango, identified as the PROFIT Project Accountant, is accused of authorising payments to various companies and allegedly uttering a false National Treasury memo.

Moturi, identified as Senior Assistant Accountant General at the National Treasury, is accused of irregularly authorising the creation of IFMIS number 403754 for a KCB account, allegedly resulting in a loss of Sh175.3 million.

The prosecution alleges that Sh1,569,582,338.20 meant for small-scale farmers under the IFAD-funded PROFIT programme was diverted through a fraudulent bank account.

The Ethics and Anti-Corruption Commission said investigations established that a fraudulent PROFIT account had been opened at Kenya Commercial Bank using falsified authorisation letters purportedly originating from the National Treasury.

“Further investigations revealed that Sh 784,732,663.70 was transferred to twenty-three companies, while Sh 768,209,574.20 was withdrawn in cash from the Co-operative Bank and KCB Bank accounts,” EACC stated.

The commission further said investigations established that the Programme Accountant facilitated fraudulent payments from the National Treasury to the 23 companies.