The former KPA had told the court that he was ready to give as personal security his parcel of land valued at over Sh200 million in exchange for his frozen assets but the court declined.
Justice Ogola noted that assets that have been frozen ought to act as a moral lesson that forfeited property cannot be traded with another.
A court has declined to suspend execution of a judgment in which Kenya Ports Authority managing director James Mulewa was ordered to pay the government Sh74.6 million for unexplained assets.
Justice Eric Ogola dismissed the application by Mr Mulewa, which had been opposed by the Ethics and Anti-Corruption Commission.
The former KPA had told the court that he was ready to give as personal security his parcel of land valued at over Sh200 million in exchange for his frozen assets but the court declined.
“The exchange of the property reduces the matter to a local commercial dispute which it is not,” said Justice Ogola in his ruling.
Justice Ogola noted that assets that have been frozen ought to act as a moral lesson that forfeited property cannot be traded with another.
The court also noted that the value of land being offered as security by the former KPA boss could not be compared with his urban assets, which have been frozen by court.
Suspend judgment
Mr Mulewa was seeking to have the judgment against him suspended pending hearing and determination of his intended appeal.
The former KPA boss had argued that he was not given an opportunity to satisfy the court that the assets in question were acquired otherwise than as the result of corrupt conduct.
He also argued that after the evidence of EACC, the court did not rule that it was satisfied on the balance of probabilities that it had proved a case that required his rebuttal.
“Failing to make a finding that a prima facie case had been established, the court failed to make a finding that the first defendant (Mr Mulewa) was required by such testimony to satisfy the court that the assets were acquired otherwise than as a result of corrupt conduct,” said Mr Mulewa.
Mr Mulewa said the judgment against him was made in error of procedure and that his right to fair trial was infringed since he was not given an opportunity to rebut the case by EACC.
He further said that the court erroneously rushed into making a final judgment under Section 55 (5) of the Anti-Corruption and Economic Crimes Act without exhausting the procedural requirements under the Act.
Ready to pay
The former MD said he was ready to pay the Sh74 million should the court hold that there is no merit in the appeal.
In September last year, the court ordered the former MD to pay the government Sh63.6 million being cumulative bank deposits he made between August 31, 2008 and May 20, 2010.
He was further directed to pay the government Sh11 million being the value of a vacant parcel of land in Nyali, Mombasa and a four-bedroom maisonette at Bandari Villas.
“Being that these assets (the plot and maisonette) are unexplained, the value should be paid to the Government of Kenya as required by Section 55 (6) of the Anti-Corruption and Economic Crimes Act,” said Justice Ogola.
The judge noted that it was evident that Mr Mulewa was afforded a reasonable opportunity to explain the disproportion between the (suit) assets and his legitimate sources of income as required by Section 55(b) of the Anti-Corruption and Economic Crimes Act.
Through lawyer Philip Kagucia, EACC argued that upon completion of its investigations, it found that Mr Mulewa had unexplained assets and consequently issued as statutory notice requiring him to explain how he acquired the assets.
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