Dozens charged with Sh100m fraud in Audit

Several individuals and entities linked to the fraudulent purchase of audit vault software for the office of the Auditor-General for Sh100 million were Tuesday arraigned in court to face several graft charges.

The accused include Stephen Ndung’u Kinuthia, Annette Mwangi, Patrick Shem Kamau Maina, Ephantus Kairu Kahwae, Sylvester Kiptoo Kiplagat, Charles Githinji Gichobi, Charles Karisa Mwaduna, Edward Mulewa Mwachinga, OSI Kenya Ltd, and Mars Technology Ltd.

It is alleged that between July 4, 2012, and August 17, 2014, they jointly conspired to steal Sh100,675,680.70 in public funds through a tender for the supply and implement an audit vault software for the office of the Auditor-General.

They denied all the charges and a ruling on their bail application is set for today.

“The court will deliver a ruling at 10am on the bail application by the accused,” said Anti-corruption Court Chief Magistrate Douglas Ogoti.

Their arrest was as a result of the Ethics and Anti-Corruption Commission (EACC) investigations into claims of corruption in that office as the estimated cost of the software was Sh18 million yet Sh100 million was spent.

“Single sourcing was unjustified in the procurement and the payment was grossly exaggerated,” EACC in an earlier statement.

Part of the Sh100 million was paid as kickbacks to public officials, private persons and their associated companies, according to the EACC.