Firm linked to state agency staff denied access to Sh180m in bank account – Business Daily
Lady Justice Esther Maina during a past court session. PHOTO | ONDARI OGEGA | NMG
The High Court has declined to lift an order blocking an employee of a state agency from accessing her bank account over accusations of irregularly acquiring more than Sh180 million through tenders.
Justice Esther Maina dismissed the application by Promo Masters Ltd Kenya seeking to unfreeze its bank account at Consolidated Bank, which was frozen in May to allow the Ethics and Anti-Corruption Commission (EACC) to probe the source of the funds.
The anti-graft agency says Ms Monica Mbuve, a director at the company, used her position at the Inter-Governmental Relations Technical Committee (IGTRC) to win state tenders.
The EACC says an analysis of the flow of funds in the bank account revealed a trend where huge amounts were credited through cheques, mainly from the Ministry of Devolution.
The company wanted the order lifted, saying it risks bankruptcy, yet there is no proof the money is proceeds of crime, as they are engaged in lawful business.
“It is my finding that it (the company) has not presented evidence before this court to controvert the serious allegations of illegality in the manner in which it obtained the funds in the preserved bank account,” the judge said.
The court further noted that there had been no denial that the director of the company was an employee of the state agency and that the monies deposited in the account came from IGRTC.
The judge added that the company did not offer an explanation or evidence of an alternative source of income as required by the Anti-Corruption and Economic Crimes Act.
“The respondent/applicant shall be afforded an opportunity to explain its source of funds during the recovery proceedings should any be proffered,” the judge said, adding that discharging the order would defeat the investigations.
The company argues that invoices, local purchase orders and the goods supplied can appropriately account for any amounts received from IGRTC or any other independent procuring entity.
The freeze, the court heard, was punitive to the company, limiting it from meeting its obligations to the taxman and other third parties.
The company said it needs to access Sh800,000 per month to meet its reasonable living expenses and other financial obligations.
Further, the court heard that there is no law barring a public officer from transacting business with the government and that Ms Mbuve was only a casual worker on short-term contracts and did not have as much influence as to award herself the alleged tenders.
The company said the tenders were awarded procedurally and that they fulfilled the contracts by rendering the goods and services.
EACC said it is yet to complete the probe, and lifting the order might jeopardise their investigations.
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