Detectives probe loss of Sh70m at Judiciary

Armed police officers Thursday sealed off certain offices at the Supreme Court as detectives moved in to investigate the loss of over Sh70 million to fraudsters.

The police were called in after it was discovered that the money was paid to “fictitious” companies over the past six days.

The officers kept guard at the procurement, accounts, and supplies offices, keeping away everybody except Judiciary officials who were being questioned by detectives.

Several Judiciary officials were interrogated and their statements taken by the detectives attached to the Banking Fraud Investigations Unit.

Preliminary investigations showed that the companies, which benefited from the payments, had not provided either services or goods to the Judiciary, but the cheques were issued in their names nonetheless.

Further scrutiny showed that at least 10 companies were involved and had opened multiple accounts in different commercial banks.

A man was arrested Thursday when he arrived at a bank in the city with a cheque issued by the Judiciary, intending to make withdrawals.

According to police, the fraudsters falsified documents, which looked authentic at face value.

Senior Judiciary officials were suspected of being involved because the documents bore their signatures and official stamps.

The Judiciary has been on the limelight following an ongoing investigation targeting its Chief Registrar Gladys Shollei.

The Judicial Service Commission (JSC) has asked her to explain her role in suspect financial transactions that could have cost the tax payer Sh1.2 billion in two years.

The charges arose from investigations by two committees of the JSC last month.

“As the accounting officer of the Judiciary, you failed to ensure that public funds are utilised prudently resulting into misuse...” reads the letter detailing the allegations against Mrs Shollei.

Since the allegations came to public on August 19, Mrs Shollei has defended her track record, saying all her dealings were above board and in the best interest of Kenyans.

She has defended herself over the investigations into her case, saying she is not on trial.

Mrs Shollei said most queries raised by JSC touched on individual departments within the judiciary, and that she had directed officers concerned to respond to them.

On Sunday, she said that JSC only served her with questions on various allegations raised against her following a mutual agreement they signed two weeks ago.

Some of the questions Mrs Shollei has been asked to respond to include claims that she secured eight months’ advance salary amounting to Sh3.5 million between October 31, 2012 and November 21, 2012, charging the Judiciary Accounts instead of the Consolidated Fund.

Others include claims of discriminatory selection of staff for foreign trips and training-- leading massive financial claims by some members of staff, including Mrs Shollei’s Personal Assistant Nicholas Okemwa.

Other queries related to irregular promotions, alleged single-sourcing of computer servers, and procurement-- including the leasing of Rahimtulla building, renting of the Elgon Place, among others.