•On August 16, 2022, EACC issued a Demand Notice to the company, and to the nine officials to remit the above amount.
•The Commission said the defendants failed to pay back the amount as demanded prompting it to file a recovery suit in the High Court on Tuesday.
Image: FILE
Ethics and Anti-Corruption Commission has filed a suit seeking to recover Sh21,697,500 allegedly embezzled by a private company.
The private company is believed to have been in collision with nine officials from the State Department of Correctional Services.
The Commission said it has already investigated the allegations of embezzlement and misappropriation of public funds, abuse of office, breach of trust and fraud against the aforementioned.
EACC established that during the Financial Years 2016/2017, 2017/2018 and 2018/2019, the firm, fraudulently received a total of Sh21,697,500 from the State Department of Correctional Services on account of goods (food and rations) not supplied.
"A fraudulent scheme was perpetrated jointly by all of the defendants, involving the making of false procurement documents including requisition forms, Local Purchase Orders (LPOs), delivery notes, inspection and acceptance certificates, and Invoices which were used to support payment vouchers," the anti-graft body said.
It added that payment vouchers supported by falsified documents were then used by the officers to effect the payments.
On August 16, 2022, EACC issued a Demand Notice to the company, and to the nine officials to remit the above amount.
The Commission said the defendants failed to pay back the amount as demanded prompting it to file a recovery suit in the High Court on Tuesday.
The company is accused of falsifying documents and submitting falsified documents to facilitate payment for goods not supplied.
It's also accused of transferring some funds to other recipients in a bid to conceal the fraudulently acquired funds and using the funds to purchase properties for their benefit or in a bid to conceal the proceeds of corruption and economic crime.
The nine officials were jointly faulted with five offences.
They include failure to adhere to ethical standards in the execution of their duties as Public Officers contrary to the Law and abuse of office powers.
Others include engaging in conduct that contravenes the national values and principles of governance provided for under Article 10 and values and principles of public service as provided under Article 232 of the Constitution.
They are also faulted for being in violation of section 42(3) of the Anti-Corruption and Economic Crimes Act, 2003 with regard to conflict of interest.
EACC regretted that despite efforts to curb fraud and graft, cases of individual public officers robbing public funds continue to thrive.
"This points to possible collusion, connivance or abdication of duty by accounting officers," the Commission concluded.
"EACC, therefore, calls upon all accounting officers of public entities to take up their responsibilities in protecting the public funds entrusted under their care and control."
It pointed out that under the Public Finance and Management Act, the officers have a mandatory legal obligation to protect public funds from misuse or embezzlement.