Court of Appeal judge Hannah Okwengu ruled that the argument by Ms Omollo was valid as it will give the court a chance of determining the controversy between parties.
The High Court in April 2020 ruled that the money in several accounts in Ms Omollo’s name, companies associated with and her three children were proceedings of crime.
Justice Mumbi Ngugi had ruled that the former PS, who is facing graft charges over the National Youth Service (NYS) scam, failed to explain the source of the funds, hence proceeds of crime.
Former Youth and Gender PS Lillian Omollo has been allowed to challenge the forfeiture of Sh33 million to the state after arguing that part of the money seized belonged to her children who were minors.
Court of Appeal judge Hannah Okwengu ruled that the argument by Ms Omollo was valid as it will give the court a chance of determining the controversy between parties. She directed her lawyer Justus Omolo to file the appeal within 14 days.
The High Court in April 2020 ruled that the money in several accounts in Ms Omollo’s name, companies associated with and her three children were proceedings of crime.
Justice Mumbi Ngugi had ruled that the former PS, who is facing graft charges over the National Youth Service (NYS) scam, failed to explain the source of the funds, hence proceeds of crime.
“In my view addressing these issues during the hearing of the appeal would help the Court in determining the real controversy between the parties,” Justice Okwengu said.
The Judge said the new issues raised by Ms Omollo basically question the legality of the findings of the High Court and the jurisdiction of the Judge to grant the orders as sought by the Assets Recovery Agency (ARA).
Two of the accounts held about Sh10 million and Ms Omollo had has questioned the legality of the proceedings brought against minors.
The accounts frozen are in Equity Bank #ticker:EQTY registered in the names of Lilian Muthoni Mbogo which had USD 67,331.9, an account in the name of LIDI Estates Ltd which had US D 28,981, another account in the same bank and the same name and which had Sh2,297,495 and another with US D 8,979.83.
Another account at Equity in Ms Omollo’s name had Sh1.68 million, while another account registered as Sahara consultants held at Diamond Trust Bank had Sh5.65 million and three accounts registered in her children’s names had more than Sh11 million.
Documents filed in court state that the amounts were deposited between January 2016 and March 2018.
ARA had opposed the application saying the former PS never raised the issue before the High Court and it was therefore an afterthought. According to the agency, the proceedings were civil and not criminal in nature.
Justice Ngugi had ordered the money seized by the state saying Ms Omollo are unable to show its legitimate source.
“It is my finding and I so hold that a criminal conviction is not a condition precedent to the making of an order for civil forfeiture,” the judge said.
Ms Omollo had defended the money arguing that it was part of her salary, some of which she earned before joining the government and gratuity she was paid after leaving her job at the New Partnership for Africa Development (Nepad) in 2015.
She said when she joined the Jubilee government as a Permanent Secretary (PS), her salary was also channelled to one of the accounts, while some were proceeds from her farm in Rarieda, Siaya County and her husband’s pay from a consultancy firm in South Sudan.
She also said ARA did not link the money to NYS by tabling proof of deposits from the agency.
The former PS was arrested and charged with others with various offences, including abuse of office and conspiracy to commit a felony.
