MP Waluke, former CS's mother found guilty in Sh297m NCPB fraud case

Sirisia MP John Waluke and the mother of former Environment CS Judi Wakhungu have been found guilty in the Sh297 million National Cereals and Produce Board fraud case.

Waluke has however been acquitted in two counts of uttering documents by false pretences.

The two will be remanded at the Kileleshwa Police Station pending their sentencing on June 25.

"The court found that there was fraud and the accused acquired money by false pretences," magistrate Elizabeth Juma ruled.

The two last month failed in their attempt to stop their trial over the multi-million-shilling fraud case.

Dismissing the application by the two, Justice Mumbi Ngugi in her May 21 judgement said it was without merit and that the state had a proper foundation to mount the prosecution. 

The judge said the duo's application had been overtaken by events because they had already been tried by a magistrate's court and found to have a case to answer.

“If storage charges were based on a fraudulent document it may well be that no maize had been ordered and the award in respect to the alleged loss of profit may also have been unmerited and therefore a fraudulent acquisition of public funds. In the circumstances, this case does not qualify as one of the clear cases in which the court can be satisfied that the prosecution does not have a proper legal and factual foundation to mount a prosecution,” Ngugi said.

The two were put on their defense by magistrate Elizabeth Juma on May 21 last year.

The case involves Wakhungu, a director of Erad, and MP Walukhe who is accused of uttering a false document.

It is alleged that on February 24, 2009, being the director of Erad, Waluke knowingly and fraudulently uttered a false invoice for Sh114 million to be used as evidence in the arbitration of a dispute between his company and the NCPB.

The alleged uttered invoice was to be used to support a claim for the cost of storage of 40,000 tonnes of maize that was incurred by Chelsea Freight.

However, even before their prosecution, the two moved to court seeking to stop the Director of Public Prosecutions.

Despite the appeal, the court declined to set aside the arbitration award which meant NCPB had to pay.

Consequently, the National Assembly’s Public Investment Committee conducted an inquiry into the contract, the arbitral award and the execution.

A report recommending the investigation of Waluke and Wakhungu was made to the Ethics and Anti-Corruption Commission.

The EACC was asked to investigate their alleged fraudulent acquisition of public property and whether or not they uttered false documents to tender for maize at the NCPB.

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