Suit poses fresh hurdle for NYS Sh791m theft case faces

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NYS scam suspects have asked a trial court to adjourn the money laundering case following a petition lodged at the High Court challenging the Proceeds of Crime and Anti-Money Laundering Act.

A fresh hurdle has emerged over the prosecution of 11 suspects the public prosecutor wants charged with money laundering in relation to the loss of Sh791 million at the National Youth Service (NYS).

The suspects have asked a trial court to adjourn the money laundering case following a petition lodged at the High Court challenging the Proceeds of Crime and Anti-Money Laundering Act.

They claim there would face “double jeopardy” if they are charged with money laundering while there is still a pending case of theft relating to the NYS case, “which if proven would form a basis for the money laundering charge”.

“The case relating to the Sh791 million loss in which the suspects have been charged is still pending before this court. If they are to be charged with money laundering, then there should be a finding on the commission of an offence to justify the money laundering case,” defence lawyer Joseph Wagara said Monday.

Mr Ham Lang’at, who is also a defence lawyer, reckons that the lower magistrate court should suspend the money laundering suit pending the High Court decision on the petition challenging the anti-money laundering Act.

“To proceed and order plea taking would amount to overruling the High Court and the proceeding already lodged at the court of appeal over this matter,” he said.

Constitutional lawyer Felix Kiprono Matagei lodged a petition seeking an interpretation of the provisions of the Act.

READ: Agency seeks orders to seize assets in NYS cash theft

He argues that the law is “vague, overly broad and which has cast a wider net to criminalise innocent persons including lawyers performing their various constitutional duties.” The High Court will hear the petition Tuesday.

However, the prosecution has asked the court to dismiss the application and order that the suspects take plea.

The suspects include Josephine Kabura, John Kago Ndungu and lawyer Patrick Ogolla Onyango.

A ruling will be delivered on July 28. The NYS scam first came to light in June after it was discovered that nearly Sh800 million had been irregularly transferred to a string of companies for fictitious procurement in a web that has entangled law firms.