Ex-payroll manager to lose cash and properties to state

A former payroll manager in Elgeyo Marakwet has been ordered to forfeit more than 24 parcels of land, two tractors and a motor vehicle to the government, which he acquired from monies stolen from the county by inflating his salary.

High Court Judge Esther Maina found that Livingstone Kiptoo Tanui inflated his salary up to three times and used to pay his spouse Viola Jelagat, from the Elgeyo County Government payroll, yet she worked in a different county.

The judge ruled the properties and Sh2.95 million in six bank accounts, were proceeds of crime and liable for forfeiture to the government as sought by Assets Recovery Agency (ARA).

“The evidence by the applicant (ARA) that the 1st respondent (Mr Tanui) not only inflated his own salaries but also falsified the payroll and hence paid himself monies that were not due to him, a claim that has not been rebutted,” said the judge.

Evidence tabled in court by ARA showed that Mr Tanui was employed as the payroll manager for Elgeyo-Marakwet County from February 2014 to October 6, 2017 when his services were terminated.

His job was to manage the integrated personnel and payroll data system as well as processing employees’ monthly payroll.

Read: Couple loses luxury car, lorry to State

The court noted that the monies credited into his spouse’s bank accounts were stated as salary. The wife worked in the neighbouring Uasin Gishu County but she earned more in Elgeyo Marakwet than from her employer.

“I am satisfied, that the ARA has demonstrated that the 1st respondent in abuse of his office, embezzled funds which benefitted him and the 2nd respondent,” ruled the judge.

His gross salary at the time ranged from Sh96,278 and Sh103,278 but ARA said he would inflate the salary three times, after deductions.
Between April 2014 and February 2017, he had allegedly embezzled Sh12.5 million from the county, monies that were deposited in three bank accounts.

The agency said Mr Tanui would also manipulate salaries of other employees, without their knowledge and the funds would end up in his own accounts.

The ARA said he paid his wife up to Sh20.8 million during the same period and she would withdraw the money and used it to acquire the properties.

The agency said investigations revealed that he misappropriated Sh38.5 million from the county government.

Mr Tanui defended himself saying he had multiple sources of income, including being a large-scale farmer, and he used the proceeds to acquire the properties.

He told the court that he harvested approximately 280 bags of maize twice a year and borrowed loans, which he serviced with his salary.

His spouse also defended the properties saying she purchased some of the parcels of land long before Mr Tanui joined the county government.

In the decision, the court noted that his pay-slips revealed that he received salaries that were above what he was entitled.

In one of the pay-slips for March 2016 his net pay was Sh31,412 but his account received Sh251,412. He also Sh11,998 as responsibility allowance in the same month.

In January 2017, his net payable salary was Sh40,983 but he received Sh260,982 into his account.

He also paid himself a salary up to the month of September 2017.

The court three parcels in Uasin Gishu and Nandi, which they acquired before he was employed in Elgeyo Marakwet.

“My finding is that the parcels were acquired by the 1st respondent (Mr Tanui) through monies fraudulently acquired from the county of Elgeyo Marakwet and that the purposes of registering them in the names of other respondents was just to conceal and disguise their sources hence a means of laundering the illicitly acquired funds,” said the judge.

The judge dismissed their defence that they were involved in farming saying there was no evidence of any money came into their accounts from the sale of cattle or farming.

The court gave the persons who sold the parcels to Mr Tanui, to refund the money to ARA to save them from being sold.

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