Firm in NYS corruption scandal loses money to the State
A court has allowed the Assets Recovery Agency to recover Sh813,597 from Arkroad Holdings Limited.
A court has allowed the government to recover Sh813,597 belonging to a firm that was at the centre of the National Youth Service (NYS) multi-million shilling corruption scandal in 2018.
Justice Esther Maina on Thursday allowed the Assets Recovery Agency (ARA) to recover the money from Arkroad Holdings Limited.
The company allegedly received funds from the youth paramilitary training institution for goods not supplied and it was also implicated in the Sh468 million corruption scam.
Justice Maina said that the court was satisfied that the money was acquired unlawfully from the government entity and therefore liable to forfeiture to the state.
Arkroad Holdings limited directors are Anthony Makara Wamiti and Peter Wagura Kimani. The company was one of the ten firms accused of getting millions of shillings from NYS with no service.
The two directors were also the persons charged at the anti-corruption magistrate court with fraudulent acquisition of public funds. They denied the charges.
While declaring the money proceeds of crime, Justice Maina noted that ARA proved beyond reasonable doubt that the funds held in the accounts of Arkroad HoldingsLlimited were illegally acquired.
"The court has found in favor of the applicant (ARA) and has forfeited the sum of Sh813,597.40 held in the account of Arkload holding limited. The court found that it was proved on balance of probability that the amount of money is proceeds of crime," the judge ruled in the forfeiture suit filed by ARA.
The judge stated that despite being given an opportunity to explain the source of money in question, the company explanation was not satisfactory.
“It is clear that Arkroad Holdings limited was not able to counter the evidence of the ARA. The application is allowed with cost to the applicant," Justice Maina said.
Arkroad Holdings and its two directors are on trial together with former Principal Secretary Lillian Omollo and 30 others at Milimani Anti-corruption Chief Magistrates court over the loss Sh469 million. The corruption crimes allegedly occurred between April 2016 and April 2017.
