EACC rejects Obado-DPP plea-bargain deal in Sh235m graft case

The plea-bargain agreement between former Migori Governor Okoth Obado and the Director of Public Prosecutions, which would have seen the state recover some Sh235 million in assets, is on the verge of collapse after EACC rejected it.

Obado was charged in 2020 alongside his children and business associates with misappropriation of Sh73.4 million from the county government of Migori through corrupt dealings.

However, the former governor entered a plea bargain deal with the Director of Public Prosecutions, agreeing to forfeit assets worth Sh235 million, more than three times the amount allegedly misappropriated.

However, the Ethics and Anti-Corruption Commission has rejected the deal, instead preferring that Obado’s case undergo a full trial.

Trial magistrate Charles Ondieki had allowed the parties to pursue the plea-bargain deal, saying the court was agreeable to any form of alternative justice.

When the matter came up in court on Tuesday for directions, the EACC, through lawyer M Ng’ang’a, told the court that the commission had been served with the details of the plea-bargain agreement but had rejected it.

“The commission is opposed to the agreement and has opposed it. In the circumstances, we did not sign the agreement,” the lawyer told the court.

All other parties, including the accused and the Director of Public Prosecutions, have agreed to the plea-bargain deal.

In his ruling, Magistrate Ondieki directed the parties to further discuss the thorny issues in the deal so the matter can be concluded.

“This court underscores that whenever it is presented with an alternative dispute resolution mechanism, as is the case herein, it should always be exercised in the direction of justice. Commendable progress has been achieved, and the court trusts that more can possibly be achieved,” Ondieki said.

He directed the parties to further negotiate so as to reach an agreement, saying the talks will give them flexibility and informality that is not present in normal court processes.

“The court directs that the parties indulge the EACC in further negotiations to iron out the rough edges and harmonise the points of departure,” he said.

Should the negotiations fail, the matter will return to court, and a hearing will proceed.

“I believe we are not there yet,” the magistrate said.

Obado was charged alongside 17 other co-accused, including his children and business accomplices.

They were charged with 25 counts, including conspiracy to commit an economic crime, conflict of interest, money laundering, and unlawful acquisition of public property

As part of the agreement, the accused agreed to forfeit assets valued at over three times the allegedly stolen amount.

These include real estate properties and vehicles.

The properties forfeited include the Loresho Ridge house, Nairobi (Sh40 million), Sunrise Centre commercial block, Suna East (Sh88 million), two five-storey residential blocks (40 units), Suna East (Sh57.6 million), and two apartments, Greenspan Estate, Nairobi (Sh18 million).

Others are Maisonette, Greenspan Estate (Sh14.5 million), residential property, Kamagambo (Sh10 million), two single-storey residential blocks (8 one-bedroom units), Suna East (Sh7.7 million), and two Toyota Land Cruiser vehicles – value included in the total.

The court has set a mention for October 24, when it will be apprised of the outcome of the negotiations.