EACC Allowed To Seize Ksh26M From Homa Bay County Assembly

The Ethics and Anti-Corruption Commission (EACC) is set to recover Ksh26 million worth of assets acquired fraudulently by Homabay County Assembly Clerk, Bob Kephas Otieno through Nyangume Enterprises, owned by his wife, Everlyne Ogutu.

This followed a judgement delivered on Thursday, March 2 by Lady Justice Esther Maina, sitting in the Milimani Law Courts in Nairobi.

South Nyanza EACC Regional Manager, Enock Otiku, who is covering Kisii, Homabay, Migori and Nyamira counties, stated that the commission would carry out the recovery following a court verdict in its favour, adding that the case started in 2018.

South Nyanza EACC Regional Manager, Enock Otiku addressing the press on March 2, 2023. /VIRALTEAKE.ELIZABETH ANGIRA

“The plaintiff, therefore, contends that the said payments of Ksh26,272,460 was fraudulent, illegal, unlawful and against public policy," read the verdict in part.

Addressing the press at the Commission’s headquarters in Kisii town, the manager revealed that Ogutu was working as an Administrator at Marindi Health Centre and doubled up as the proprietor of the Enterprise.

“The firm was not prequalified to offer services and goods to the County Assembly of Homabay. It is a case of conflict of interest” Otiku stated, stressing that the transactions of the funds were traced to the firm’s account.

Otiku added that the two will face criminal charges after EACC has recovered the assets, adding that they will pay 12 per cent interest as well as the cost of the suit.  

If the duo is found culpable in the criminal case, they will be convicted, fined or jailed, emphasizing that EACC is also pursuing 19 County Executive Committee (CEC) members in Homa Bay for various crimes.

"The persons earned multiple salaries while others worked in other counties. The Commission targets to recover Ksh42 million earned through fraud,” Otiku asserted, adding that EACC is embracing Alternative Dispute Resolution (ADR) to recover the Assets fraudulently acquired.

In ADR, parties involved resolve the matter through mediation and arbitration, and the process is less formal.

Through its Advocate, Caroline Wairimu Kamau, EACC had argued before the Court that the former Clerk, in abuse of his position and in breach of public trust, weaved a scheme to, jointly with his wife, defraud the County assembly and proceeded to illegally and fraudulently authorize payment of Ksh26,272,460 to the wife’s company for no work done. 

The Clerk’s wife, trading as Nyangume Enterprises, was never prequalified to offer any services or goods to the County Assembly of Homa Bay. Despite that, the bank account of the Clerk’s wife received the funds directly from the county assembly within a period of six months for no work done or services rendered.

She was the sole account holder/signatory for the Nyangume Enterprise bank account which received the stolen funds, some of which were subsequently transferred to the Clerk.

Despite the commission issuing a demand to the former Clerk and his wife to pay back the stolen amount, the couple refused, failed and/or ignored to remit the payments necessitating the filing of a recovery suit in 2018. 

EACC welcomed the judgement which comes in the wake of increasing cases of embezzlement of public funds involving public officials in cahoots with family members, relatives and associates, especially in county governments. 

The Homabay case is among various recovery suits worth over Ksh40 billion that are currently active in various courts across the country where EACC is seeking to recover corruptly acquired assets for public benefit.

Homa Bay county assembly. /FILE