• Ngugi had blocked the two companies and directors from accessing two bank accounts containing Sh8.4 million.
• She also ordered them to immediately surrender nine vehicles to the Assets Recovery Agency.
Image: FILE
The High Court has declined to unfreeze accounts of two companies and two directors charged alongside Nairobi Governor Mike Sonko in the Sh356 million graft case.
Judge Mumbi Ngugi ruled that Hardi Enterprises, Toddy Civil Engineering Company Limited, Anthony Mwaura and Rose Njeri did not show how the existing orders had caused them undue hardship.
She said they failed to show how the orders would deprive them of the means to provide for their reasonable living expenses.
“Arguments on whether the assets in question are proceeds of crime should wait till hearing of the matter. This application is dismissed,” she said
On February 24, judge Ngugi blocked the two companies and the directors from accessing two bank accounts containing Sh8.4 million.
She also ordered them to immediately surrender nine vehicles to the Assets Recovery Agency.
The judge issued temporary orders to preserve Sh1.5 million held at an account in Equity Bank and Sh6.9 million held at Sidian Bank run by Hardi Enterprises and Toddy Civil Engineering, respectively.
On March 2, the companies and directors sought an order to vary the preservation and seizure orders issued by Ngugi.
The basis of the application and issuance of the preservation orders was on a tender for hire of vehicles and equipment which had been awarded to Hardi by the Nairobi City County government
ARA alleged that the tender was irregularly awarded and any proceeds therefrom are proceeds of crime. The agency also claimed that the company's funds were fraudulently obtained from the Nairobi City county government and were the proceeds of crime.
But the companies argued that the agency misled the court that the payments under the contracts were used to acquire all the motor vehicles listed in their application that were subject to the preservation orders.
According to them, only three of the motor vehicles listed in the application by ARA were acquired and registered subsequent to the tender and payment.
The remaining six vehicles, they said, were acquired before the subject tender and before the receipt of payment from the county government and could not therefore be subject to the proceedings.
But ARA said their investigations established that the companies were conduits used by Sonko and that they jointly embezzled funds from the coffers of the Nairobi City County government.
As a result, they were charged alongside Sonko. According to the agency, during the period of its investigations running from April 2017, Hardi received Sh175 million and Sh102 million from the Nairobi county and intra-transferred the funds between themselves and the governor.
Edited by Henry Makori