•Atwoli said he had been asked to explain why he received the money that was seen to be illegal compensation and a conspiracy to defraud.
•Others roped in the alleged plan to defraud the Kenyan government include; Albino Abuog and George Khaniri.
Image: FILE
Former National Assembly Speaker is Friday November 4 expected to explain to the anti-graft agency on money he received in a conspiracy to defraud probe.
He joins Jubilee Party Vice-Chairman David Murathe, former Lugari MP Cyrus Jirongo and COTU Secretary General Francis Atwoli in the Sh250 million land compensation saga.
Officials at the Ethics and Anti-Corruption Commission (EACC) said they expected Marende to appear before a team probing the issue.
Others roped in the alleged plan to defraud the Kenyan government include; Albino Abuog and George Khaniri.
Murathe appeared before the team on November 3 and explained why he received part of the money from Jirongo.
He read political harassment in the probe.
Atwoli is said to have received Sh60 million, while Jirongo and Murathe received Sh25 million and SH20.6 million, respectively.
One George Khaniri is alleged to have pocketed Sh5 million, while Marende received Sh3 million and Albino Abuog Sh38 million.
Officials at the commission said the money was paid through compensation for land located in Nairobi’s Mkuru slums and referred to as L.R. No. 209/11887.
The property currently houses public utilities, which include Rueben Primary School, a health centre, a police station, and a vocational centre.
The land is said to have been occupied by A.E.F Reuben Primary School since 1986, and it was operated by the Mukuru Promotion Centre and funded by the Africa Education Fund until 1998 when it was handed over to Nairobi County and registered as a public school.
A private citizen applied and received the parcel of land, which he later transferred to Kuza Farms & Allied Limited in 1990.
Kuza has since not developed nor occupied the land.
However, sometime in the year 1993, the subject parcel of land was used as security for a facility of Sh1,650,000,000/- taken out by Sololo Outlets Limited in favour of Post Bank Credit Limited consequently registering a charge against the title of the subject parcel of land.
The borrower failed to service the loan as required and as such Post Bank Credit Limited retained the original title until it went into liquidation when the Deposit Protection Fund Board (now Kenya Deposit Insurance Corporation) took over custody of the title.
The arrears of the loan taken against the land has since accrued to Sh19.8 billion.Kuza is said to have gone to court in 2014, suing the A.E.F Reuben Primary School Board of Directors, the Nairobi City County, the Attorney General's Office, and the National Land Commission.
In the suit, Kuza sought to have structures on the subject parcel of land demolished as well as trespass compensation.
EACC argues the suit was not determined on merit as parties engaged in out-of-court negotiations giving rise to a consent that was ultimately adopted as a decree of the court on the August 1, 2016.
The terms of the decree stipulated that the defendants in the suit were to jointly and severally compensate Kuza Farms & Allied Limited for its land known as L.R. No. 209/11887 at an all-inclusive sum of Sh250 million.
The payment of the compensation amount was dependent on Kuza clearing all encumbrances registered against the title to the subject parcel of land.
Kuza was also required to execute all necessary transfer documents and hand over a clean title to the County Government of Nairobi over the subject parcel of land.
According to our source, in 2020, the county government of Nairobi compensated Kuza despite failing to comply with the terms of the decree because the title was still held by the Kenya Deposit Insurance Company (KDIC).
"Immediately the funds were paid out by the County Government, the money was shared and distributed through law firms to several entities.
In a statement to EACC, Murathe said on October 16, 2017 the firm of Wagara Koyyoko & Co. Advocates issued to his Advocates Wambugu Muriuki & Co. Advocates a professional undertaking to remit the sum of Sh60million from decretal proceeds of an ELC matter (ELC/507/2014 Kuza Farms and Allied Ltd vs. NCC & Others Farms & Allied Limited), which undertaking was supported by security of land.
“The sum undertaken was in partial settlement of debt owed to me by the Managing Director of Kuza Farms & Allied, S.K. Jirongo,” he said.
He said he received Sh25million in two installments of Sh18million and Sh7 million from his Advocates on or about 23rd July, 2020.
“This is my full statement on the circumstances leading to my receipt of the funds and I have no knowledge or involvement on the purported conspiracy to defraud the County.”
He added it was only on receipt of EACC letter dated October 27, 2022 that he had the opportunity to peruse some documents relating to the ELC matter.
In particular, the consent between the parties dated 6th July, 2016 and resultant decree dated 1st August, 2016 which are confirmed to the best of his knowledge was the source of the funds, he added.
Also summoned were a number of county officials who were responsible for the payment, EACC officials said.
Atwoli is out of the country on official matters and is expected next week.
Jirongo arrived at Integrity Centre gate on Thursday but refused to get in after realizing there were journalists there waiting.
He wrote to the commission through his lawyer Wagara Koyyoko saying he will agree to being grilled in secrecy in his office in Westlands.
“We dutifully turned up at your offices with our client ready to provide any documents and information vou require.
To our dismay we found a battery of Journalists waiting with their cameras microphones and other equipment right infront of your entrance.
It was clear that they were there at your invitation specifically for purposes of covering this investigation as a news item.
“It is in bad faith and an infringement on our client's right to privacy for you to seek to publicise an investigation that is at its formative stage. It betrays an intention to make political capital out of the matter contrary to a pursuit of the facts and justice,” he said.
He added it is clear that the summons were intended to scandalize and paint his client in bad light even before hearing them out.
“It is unlawful and immoral to seek to tarnish our client's name in the guise of investigations which are clearly stage managed.”
The lawyer said the genesis of this matter is a civil dispute that runs back over 15 years and through many political administrations both nationally and at City Hall. rathe
Atwoli said he had been asked to explain why he received the money that was seen to be illegal compensation and a conspiracy to defraud.
He said he received about Sh60 million from Jirongo as part of refund to a Sh100 million he had lent him.
The balance was to be paid later. He said he did not know the source of the money.
The transaction is said to have taken place in 2020.A Court found that Jirongo was personally liable to pay Sh110 million to Atwoli.