Supplier ordered to refund Sh70 million to ministry

A supplier of school equipment was let off the hook after the High Court allowed their appeal against a Sh800,000 fine and jail term.

But the court, citing a breach of procurement procedures, ordered the supplier to refund the Sh70 million they received from the Ministry of Education as down payment to supply equipment to secondary schools.

Justice Luka Kimaru, however, dismissed an appeal by four former employees of School Equipment Production Unit (SEPU) to have a magistrate court's ruling that convicted them of fraud quashed.

Instead, the four were ordered to pay a fine of Sh800,000 each as directed by the lower court for flouting procurement rules when acquiring the equipment.

The court directed that the money deposited in Equatorial Bank with all accrued interest be refunded within seven days because the officials did not follow procurement procedures to buy science equipment, which was to be supplied to 1,440 schools.

Justice Kimaru cleared Mr Kochar Visham and M/S Vulcan Lab Equipment Limited of the conviction by the magistrate court.

The court noted that they were under no obligation to inquire from the four if they had followed procurement procedures.

“There is no evidence to suggest that the two solicited the said order from the four former SEPU officials. Criminal liability cannot therefore be attached to them,” said the judge.