Trial begins in Ksh.51M Kilifi County gov’t fraud case involving Senator Mungatana

The hearing of the case in which Tana River Senator Danson Mungatana and 17 others are accused of defrauding the Kilifi County Government of Ksh.51 million commenced in a Malindi court on Wednesday.

A former Integrated Financial Management Information System (IFMIS) liaison officer with the county government, Gabriel Mkare, testified that six companies linked to the lawmaker fraudulently siphoned funds from the county's accounts at the Central Bank of Kenya (CBK).

Mkare told Malindi Chief Magistrate Elizabeth Usui that the fraud came to light when an invoice to pay temporary county employees on strike was rejected by IFMIS due to insufficient funds in the designated account.

According to Mkare, the IFMIS rejection raised suspicion and triggered an investigation revealing transactions that hadn't undergone proper validation and approval processes.

He further stated that the companies which received payments were unfamiliar to the county government, as they had bypassed the identification, validation, procurement, and approval procedures.

By the time this discrepancy was discovered, Mkare noted, some of the recipients had already withdrawn the funds deposited into their accounts.

Mkare further took the court through the county's step-by-step payment system, highlighting numerous irregularities in the approval of fraudulent transactions.

For instance, Daima One Enterprises received Ksh.7,230,940 from the Kilifi County government, with an attempted second transaction of Ksh.4,100,200 halted by the Central Bank before it was withdrawn.

Leadership Edge Associates and Kilingi Investments Company also received Ksh.7,840,910 and Ksh.6,700,952 respectively, with a subsequent transaction of Ksh.3,109,132 to the former halted.

Zohali Services Limited, Mkare went on, withdrew Ksh.5,390,520 from the county government's CBK account and withdrew Ksh.125,125 from it, leaving a balance of Ksh.7,715,000, which was reimbursed to Kilifi County.

Makega Suppliers Limited conducted two transactions amounting to Ksh.3,243,958 and Ksh.7,119,220. They managed to withdraw Ksh.3,063,057 and Ksh.6,785,951.20 respectively, leaving a remaining balance of Ksh.623,787.60.

Furthermore, Mkare added, Jahazi Investments Company Limited received Ksh.6,012,950, withdrawing all but Ksh.180,548.80.

Mungatana was dramatically arrested by Ethics and Anti-Corruption (EACC) officers alongside six other people, among them four Kilifi County government officials and two business people, on Thursday April 11, 2019, while the other 11 were arrested later.

The case has been ongoing for the past five years as the prosecution sought witnesses, which they have now secured.

The trial is anticipated to proceed without interruption until all witnesses have provided their testimony.

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