Economy

EACC bid to seize Sh41m from Mututho dismissed

mututho

Former Naivasha MP John Mututho. FILE PHOTO | NMG

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Summary

  • Anti-graft agency’s bid to recover Sh41.3 million from former Nacada chairman John Mututho has been stopped by the High Court.
  • EACC said the money, which was paid to Mr Mututho as reimbursement for goods he supplied to the Kenyatta National Hospital (KNH) decades ago, amounted to unjust enrichment.

Anti-graft agency’s bid to recover Sh41.3 million from former National Campaign Against Drugs Abuse (Nacada) chairman John Mututho has been stopped by the High Court.

The Ethics and Anti-Corruption Commission (EACC) said the money, which was paid to Mr Mututho as reimbursement for goods he supplied to the Kenyatta National Hospital (KNH) decades ago, amounted to unjust enrichment as he used forged documents.

However, Justice John Onyiego said the fact that goods were delivered without any claim that they were locally manufactured was sufficient proof that the lockers were imported and supplied as per specifications.

“As to how the goods left the port, it is up to KRA (Kenya Revenue Authority) to unlock the mystery and false issuance of double import entry declarations and subsequent payment receipts,” the judge said.

He said the KRA may have not received its proper tax but it was upon the regulator to investigate its staff.

tax claim

The EACC filed the case on behalf of the KNH seeking to recover the money, saying Mr Mututho and his company, Countryside Supplies was paid irregularly after lodging a false tax reimbursement claim.

The firm allegedly supplied KHN some 1,600 bedside lockers in 1999 in a Sh71.3 million tender sponsored by USAid.

Earlier Mr Mututho had been arrested and charged in 2005 with nine counts of uttering false documents but was acquitted for lack of evidence.