In Summary

• Former Postmaster General Francis Chahonyo was also an accused in the case but died in June 2020.

• The magistrate said each of the accused demonstrated they acted in good faith and did not benefit from the funds. 

Former Finance Secretary Samuel Bundotich, former Transport CAS Chris Obure and former PS Sammy Kyungo before anti-corruption court where they were acquitted of corruption charges on June 17, 2022.
Former Finance Secretary Samuel Bundotich, former Transport CAS Chris Obure and former PS Sammy Kyungo before anti-corruption court where they were acquitted of corruption charges on June 17, 2022.
Image: DOUGLAS OKIDDY

Lack of evidence and failure by the prosecution to prove their case in the Sh928 million Anglo Leasing security project led to the acquittal of Chris Obure and two others.

Milimani magistrate Ann Mwangi absolved Obure, Sammy Kyungu (former Transport PS) and Samuel Bundotich (former Finance Secretary Ministry of Finance) of any wrongdoing in the case. She said none of the charges levelled against them were proven beyond reasonable doubt.

Former Postmaster General Francis Chahonyo was also an accused in the case but died in June 2020.

The magistrate said each of the accused demonstrated they acted in good faith and did not benefit from the funds said to have been lost in the project initiated seven years ago.

The former public officers were accused of procuring VSAT products from Spacenet Inc for Data Network and Rural Internet Services Project for the Postal Corporation, without following rules. The project was funded by First Mercantile Securities Corporation.

Chahonyo and Kyungu were alleged to have initiated the procurement of the VSAT products for Postal Corporation of Kenya without following procedures.  Bundotich made the payments after authorisation by Obure.

The magistrate said Bundotich exercised due diligence and his actions were reasonable.

She faulted the investigating agencies for failing to establish who the initiator of the project was.

Mwangi disputed that it was Obure as he only relied on information from Chahonyo. She said Obure was not to follow the procedure as authority had already been given for direct procurement in terms of the project.

 “Chahonyo could have shed light but he is dead. None of the accused committed the offence even though they played a role in the project,” she said.

The court said there was evidence that the then Attorney General gave a preferable opinion supporting the project.

In acquitting the three, the magistrate said there was no evidence that funds were budgeted for things not intended for.

Kyungu during the hearing said the total cost of the project was Sh928 million. He said he consulted widely and did not act unfairly.

On that strength and the lack of evidence, the magistrate concluded charges against Kyungu have not been proved beyond reasonable doubt.

ANC leader Musalia Mudavadi was among the 27 prosecution witnesses who exonerated Obure and team from any wrongdoing.

He was the Transport minister when the Sh928 million contract was signed between the government and Spacenet Corporation – a US-based firm– for the supply of data networks.

In his evidence, Mudavadi said no fraud was committed and he believes the accused persons followed all the laid down procedures in signing the contract.

Mudavadi, who approved the project, said it was after deliberations and advice from his ministry’s technical team that he decided to seek support from the Finance ministry. He said he believed the project would be of great help to the corporation.

Edited by A.N 

 

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