Nine National Treasury officials and business owners have been arrested over the alleged loss of Sh1.57 billion from an agricultural programme funded by the International Fund for Agricultural Development (IFAD), in a case involving claims of fraudulent payments, forged documents and money laundering.
The Ethics and Anti-Corruption Commission (EACC) on Tuesday said the suspects are linked to the alleged embezzlement of Sh1,569,582,338.20 from the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme, which was run by the National Treasury between the 2013/14 and 2023/24 financial years.
The PROFIT Programme was established to help small-scale farmers access affordable financing, but investigators say billions of shillings meant for the programme were instead channelled to private businesses through fraudulent transactions.
According to the EACC, Sh1.569 billion was irregularly disbursed from the National Treasury Development Account to the programme before being transferred to 23 private entities, 15 business names and eight companies.
The commission said the payments were made for goods and services that were “never supplied or rendered”.
Investigators also found that programme officials allegedly relied on false and forged documents to account for the money, raising questions over how the funds were approved and accounted for.
The EACC further said the officials opened an unauthorised KCB Bank account in the name of the PROFIT Programme, through which Sh175 million was received.
The money was allegedly laundered and embezzled, with a substantial portion withdrawn in cash.
“Investigators also established financial links between programme officials and some of the private entities that received the funds,” the commission said, adding that the transactions appeared to contravene public financial management and accountability requirements.
Among those arrested on Tuesday are PROFIT Programme Coordinator John Ngure Kabutha, National Treasury Head of Accounting Unit Namwel Moturi Motanya and Senior Accountant John Maina Muriithi.
Six business owners and directors were also arrested in connection with the alleged scheme. They are Gladys Juliet Oroni, Brian Kiprop Chepkarat, Ian Kwemoi Chepkarat, Josephat Kamau Kamoshe, James Omwodo Ndai and Jimmy Carter Odoyo Osodo.
The arrests followed the conclusion of investigations into the alleged misuse of funds, with the EACC saying the Director of Public Prosecutions (DPP) had approved the prosecution of 20 public officials, companies and company directors.
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.
The nine suspects who have been arrested are expected to appear before the Milimani Law Courts on Wednesday, August 19.
The EACC has also directed 11 other suspects to report to its Integrity Centre in Nairobi or the nearest EACC office for processing.
Those required to present themselves include PROFIT Programme Accountant Billy Otieno Obango, as well as several proprietors and directors of companies allegedly linked to the programme.
The commission said it will also pursue the recovery and forfeiture of public funds and assets found to have been acquired through corrupt conduct or other unlawful means.
“The EACC remains committed to protecting public resources and ensuring persons responsible for loss or misappropriation are held accountable,” the commission said.