Supplier ordered to refund Sh70m

The High Court has ordered a supplier to refund Sh70 million to the Ministry of Education paid for secondary school equipment over a breach of procurement procedures.

Justice Luka Kimaru also dismissed an appeal by four former employees of School Equipment Production Unit (Sepu) to have a magistrate’s ruling that convicted them of fraud quashed.

As a result, the four have been ordered to pay a fine of Sh800,000 each or serve two years in jail in default, as directed by the lower court for flouting procurement rules in the acquisition of the equipment.

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

Justice Kimaru’s ruling followed an appeal by the four employees of Sepu, Benson Anyona Ombaki, Patrick Mwavala Mwalalwa, Wilson Shivatsi M’maitsi and Bernard Moses Ongige who were convicted of receiving fraudulent payment from public funds for goods not supplied.

In the same appeal, Kochar Visham and Vulcan Lab Equipment Limited were convicted of fraudulent acquisition of public property, which was paid as down payment in the deal that was to cost the government Sh261 million.

The charge stated that the four officials paid M/S Vulcan Lab Equipment Sh75,086,880 for goods not supplied.

Mr Visham was fined Sh800,000 in default or a sentence of two years in prison. He was also sentenced to serve a further 12 months in prison without an option of a fine.

Volcan Lab Equipment was ordered to pay a fine of Sh800,000 and in addition ordered to pay a fine of Sh10 million.

The ex-Sepu officials said they were convicted yet they followed procedure.