EACC to probe illegal transfer of Sh500,000,000 from New KCC
Workers at the Kiganjo New KCC factory in Nyeri pack powder milk on March 16, 2017. A dispute over alleged illegal transfer of Sh500,000,000 belonging to New KCC to other entities has been referred to the anti-corruption court. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
- Mr Peter Kennedy Ombati argues that the EACC has failed to act on the allegations raised regarding the controversial transfer of Sh475, 150,742.
- New KCC has opposed the application arguing that EACC has commenced investigations and should be allowed to carry them out without the court's intervention.
- Mr Ombati says on August 6, 2017 Sh2.6 million was used to hire a chopper for services not rendered.
A dispute over alleged illegal transfer of Sh500,000,000 belonging to New Kenya Co-Operative Creameries Ltd (New KCC) to other entities has been referred to the anti-corruption court.
Constitutional and Human Rights Division Judge, Wilfrida Okwany said the matters raised in the petition are graft related and will best be handled by the Anti-Corruption and Economic Crimes Court.
Mr Peter Kennedy Ombati, who is a former New KCC company Secretary, argues that the EACC has failed to act on the allegations regarding the controversial transfer of Sh475, 150,742.
“The transfer of the colossal amount and the manner in which it was carried out in closed doors without obtaining consent from members was tainted with corrupt considerations,” Mr Ombati in court papers.
SUED TRADE MINISTRY
He has sued the EACC, the Ministry of Industry Trade and Cooperatives, Inspectorate of State Corporations, New KCC, and the firm’s senior management.
New KCC has, however, opposed the application arguing that EACC has commenced investigations and should be allowed to carry them out without the intervention of the court, unless it is established that in conducting its lawful duties, EACC has breached the law.
“Petition seeks to have some managers removed from office as investigations by EACC are underway. These are matters that are still under investigations and, until investigations are complete, such conclusions as to capacity or incapacity to hold office are premature,” New KCC in court papers.
HIRED CHOPPER
Other issues raised in the petition relates to a chopper hired in August last year, for services the petitioner argues were not rendered.
Mr Ombati says on August 6, 2017 Sh2.6 million was used to hire a chopper for services not rendered as neither the Board members nor management team were invited to accompany the government team that was alleged to be involved in inspection of modernisation of factories in Mombasa, Nyahururu and Eldoret factories in August, 2017.
The case will be heard on December 10.
