EACC says recovers Sh18 out of every Sh100 stolen from taxpayer

The Ethics and Anti-Corruption Commission recovered Sh18 out of every Sh100 illegally acquired assets under investigation last year, underlining the difficulties of repossessing stolen wealth.

Kenya’s anti-graft agency says it seized assets worth Sh700.6 million from corrupt individuals out of the total Sh3.86 billion fraudulently amassed wealth under scrutiny in the year to June 2016, translating to a recovery rate of 18 per cent.

The asset recovery and forfeiture – mostly grabbed public land and looted taxpayer cash - is however higher than the Sh140.2 million reclaimed in the year to June 2015.

EACC chief executive Halakhe Waqo blamed the continued low recovery rates of looted assets on lengthy court cases, and an entrenched unethical culture among Kenyans.

“The commission was faced with various challenges including constraints on policy and legal framework, inadequate human resource capacity, inadequate presence in all regions of Kenya and a slow adjudication of cases,” said Mr Waqo in the agency’s latest annual report.

A total of Sh295.5 million was recovered in cash, including Sh280 million stolen from Kenya Ports Authority retirement benefits scheme, Sh7.5 million from former Kemri boss Davy Koech, ex-Nacada chairman John Mututho (Sh349,200), former Independent Electoral and Boundaries Commission chief executive James Oswago (Sh413,845).

The remaining Sh405 million was seized in the form of three prime real estate properties in Eldoret and Nakuru.

The EACC gobbled Sh2.1 billion of taxpayers’ cash in expenses mainly on staff wages — meaning the agency’s spending on operations has far outweighed recoveries.

READ: EACC records worst assets recovery in four years

The anti-graft agency has also been rocked by corruption scandals that saw Philip Kinisu exit as chairman at end of August after it was established he received part of NYS dirty cash.

Esaki Ltd, linked to former EACC chairman Phillip Kinisu, received Sh54 million in phony payments from National Youth Service (NYS), with some of the cash received while he was at the helm of the anti-graft agency.

The EACC’s poor show in recovery of stolen pubic assets comes at a time when grand corruption is making a comeback in Kenya, as evidenced by big graft scandals.

The list of mega corruption deals that gripped Kenya recently include Sh5 billion Afya House scam and Sh1.1 billion Kilifi county heist.

Others are the siphoning of Sh1.9 billion from NYS, Sh200 million plunder at Youth Enterprise Development Fund and the grabbing of a 134-acre piece of land in Karen by top government officials.

Kenya on Wednesday marks one year since President Uhuru Kenyatta declared graft a risk to the region’s biggest economy.

“I am therefore declaring with immediate effect corruption as a national security threat,” said President Uhuru Kenyatta on November 23, 2015.