Details have emerged on how the Erad maize scandal unfolded with the taxpayer losing Ksh297 million for the purchase of 40,000 metric tonnes of maize in 2004 that were never bought.
Large amounts were transacted in cash and significant payment details are missing. An unknown client was paid Ksh112 million.
Significantly also, large amounts were paid as legal fees compared to the amounts declared to have been paid to the directors of Erad supplies.
It also shows how the fraud was unravelled and the perpetrators brought to book.
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According to the Ethics and Anti-Corruption Commission, the money was shared between Erad General Suppliers with the accused who were directors pocketing Ksh90 million.
Law firms namely Ahmed Nassir and company limited was paid Ksh40 million, Soita and Saende advocates pocketed Ksh34 million, former deputy Chief Justice Nancy Barasa made away with Ksh5 million in legal fees with the rest of the money being withdrawn using cheques.
EACC further reveals that funds in NCPB’s accounts at various Kenya Commercial Bank branches throughout the county were moved to KCB A/C No. 1107165679 held at Kencom Branch and seized through a garnishee order which was made absolute by Justice Mabeya on 15th March, 2013.
“In the same ruling, an agency notice placed by Kenya Revenue Authority to recover undeclared tax and penalties from Erad was discharged and the sum of Kshs. 297,389,505.00 transferred to A/C No. 0948421941 maintained at Barclays Bank of Kenya in the name of Soita and Saende Advocates Client Account on 19th March, 2013”, reads the dossier.
At the time of the transfer, the said account balance was only Kshs. 3,205.60.
The funds were shared in a just two (2) days among the directors and Lawyers as follows;
| S/No | Date | Beneficiary | Amount (Kshs.) | Payment Details |
| 1 | 20/3/2013 | Nancy Barasa
(Former Deputy Chief Justice) |
5 million | Legal Fees |
| 2 | 20/3/2013 | Ahmednassir & Abdikadir & Co. Advocates | 35 million | Legal Fees |
| 3 | 20/3/2013 | Cheque Withdrawal (beneficiary not stated) | 6 million | Not stated |
| 4 | 20/3/2013 | Soita & Saende Advocates | 2 million | Legal Fees |
| 5 | 20/3/2013 | Soita & Saende Advocates | 12 million | Legal Fees |
| 6 | 20/3/2013 | Soita & Saende Advocates | 10 million | Legal Fees |
| 7 | 21/3/2013 | Cheque Withdrawal (beneficiary not stated) | 5 million | Not stated |
| 8 | 21/3/2013 | Soita & Saende Advocates | 112 million | Transfer of client shareholder(Shareholder not stated) |
| 9 | 21/3/2013 | Soita & Saende Advocates | 10 million | Legal Fees |
| 10 | 21/3/2013 | Ahmednassir & Abdikadir & Co. Advocates | 5 million | Legal fees |
| 11 | 21/3/2013 | Grace Sarapay Wakhungu | 40 million | Transfer of client shareholder |
| 12 | 21/3/2013 | John Koyi Waluke | 50 million | Transfer of client shareholder |
| 13 | 21/3/2013 | Cheque Withdrawal (beneficiary not stated) | 5 million | Not stated |
| 14 | 21/3/2013 | Fund transfer – Soita & Saende Advocates | 320,000.0 | Not stated |
| Total 297,320,000.00 |
Sirisia Member of Parliament John Waluke who is at the centre of the scam was Thursday fined over Ksh700 million in connection with the National Cereals and Produce Board (NCPB) maize scandal.
Waluke was convicted alongside Grace Wakhungu Wakhungu, the mother of former Environment Cabinet Secretary Judi Wakhungu. They will each serve seven years in prison if they fail to pay the money.
Ms Wakhungu and Mr Waluke are shareholders of Erad Supplies & General contracts Ltd, which was paid Sh313 million by NCPB after accusing the agency breaching a contract in 2004.
The Anti-corruption Chief Magistrate Elizabeth Juma termed the scandal a serious economic crime where the taxpayer was defrauded of huge sums of money and gave the two 14 days to appeal.
Should the appeal fail then Waluke automatically loses his seat in parliament.
While welcoming the sentence, Deputy Director of Public Prosecution Alexander Muteti, however, said he was going to appeal the non-custodial orders granted to the accused.
Landmark win on fight against corruption as court sentences Sirisia MP John Waluke and Grace Sarapay Wakhungu to a total of Ksh 727 million and Ksh 707 million respectively i/d 10 years imprisonment each for Ksh 313 maize fraud.#AntiCorruption_ODPP pic.twitter.com/sgmy9OlPYF
— ODPP_KE (@ODPP_KE) June 26, 2020
The Speaker of the National Assembly and Parliamentary Service Commission will be notified to ensure Waluke complies with the orders given.
Lawyers representing the MP and Wakhungu during mitigation requested for non-custodial sentences claiming the two were remorseful and were first offenders.
Deputy Director of Public Prosecution Alexander Muteti vehemently opposed pleas for non-custodial sentence arguing that releasing them would open the flood gates for other corrupt individuals to enjoy freedom at the expense of public funds.