JSC sends Gladys Shollei packing over Sh2 billion scandal

Judiciary Chief Registrar Gladys Shollei was on Friday evening sacked by her employer, the Judicial Service Commission (JSC), over allegations that she misused Sh2.207 billion.

JSC president Chief Justice Willy Mutunga said she had been fired for incompetence, misbehaviour, violation of the code of conduct for judicial officers, insubordination and violation of Chapter Six and Article 232 of the Constitution.

In a detailed statement, Dr Mutunga said Mrs Shollei had admitted 33 allegations in which Sh1.7 billion “is at risk or has been lost”. Mrs Shollei allegedly also denied another 38 allegations in which Sh250 million was lost. The JSC stated that her responses to allegations involving Sh361 million were “mixed, flippant and flimsy”.

“Having fully appreciated the allegations served on her, and having read the responses, and noting that she elected to appear in person before the commission, and after in-depth interrogation of all issues, it is the unanimous resolution of the commission that the Chief Registrar of the Judiciary is hereby removed from office with immediate effect,” said Dr Mutunga.

The JSC’s decision came at the end of two months of drama at the 83-year-old address in the middle of Nairobi involving a trove of emails leaked to the Press, allegations that accounts had been hacked, a statement by Dr Mutunga that graft had returned to the Judiciary, and claims that some officers had misappropriated Sh80 million.

The Ethics and Anti-Corruption Commission had already announced that it was on the case but Dr Mutunga has invited them to return and look into the allegations on whose basis Mrs Shollei was shown the door.

Last evening, Law Society of Kenya Chairman Eric Mutua said:

“In terms of the Judicial Service Commission having made a decision which, in one way or another is disciplinary, then our view is that they are within their right.

“For the sake of the Judiciary, it was necessary that JSC makes a determination because this stalemate was affecting the reputation of JSC and even the Judiciary.

“Going forward, we support the move by the Chief Justice to invite the Anti-Corruption Commission to investigate corruption allegations in the Judiciary.”

In reports posted on the Judiciary’s website, Mrs Shollei was in trouble for receiving Sh2.56 million in sitting allowances when the JSC was conducting interviews for Court of Appeal and High Court judges yet she did not participate in the process. When she denied it, the JSC referred to signed registers and verbatim reports, which confirmed that she did not attend the interviews. She did not refund the money.

Mrs Shollei also allegedly took an eight-month salary advance of Sh3.5 million from the Judiciary’s Milimani Court Deposit Fund.
She admitted that allegation, the JSC said, and stated that the facility was available to judges. She presented a list of the judges and said she had been making repayments of her advance. But the JSC said it only found a receipt for Sh680,625.

JSC said Mrs Shollei was wrong to take salary advances from the Judiciary Fund instead of the Consolidated Fund Service, where her salary comes from. This contravened government financial regulations, JSC said.

“The regulations also state that salary advances should not be for more than two months and should only be granted when an officer has no other outstanding advances,” the JSC said.

Another charge related to the leasing of Elgon Place, the building in Upper Hill that the Court of Appeal judges are reported to have rejected. (READ: Move Telkom masts, urge judges)

Sealink Holdings, the building’s owners, were paid two times: Sh42 million by the Judiciary headquarters and Sh9.5 million as rental fees for three months and Sh43.25 million by the Judiciary Training Institute.

Because this amount was paid in dollars— $371,259.85 by headquarters at an exchange rate of Sh87.60 at the Central Bank of Kenya and $476,322.49 by the training institute at the Kenya Commercial Bank rate, JSC said Sh1.1 million was lost.

Payments of $171,880.20 were also made for security deposits contrary to the financial regulations against making pre-payments. The JSC said Mrs Shollei admitted that Sealink was paid twice for the same thing, and stated that the money would be recovered during partitioning of the building without an approximate cost of the works.

“The Commission observed from the lease agreement that the effective date for payment of rent for Elgon Place premises was April 1, 2013, and not January. However, the Judiciary paid rent to Sealink Holdings for the period January 2013 to June 2013, and again for the period July 2013 to September 2013. These payments were clearly outside the terms of the lease agreement and way in excess of the agreed rent,” JSC said.

It said Sh177 million was paid for partitioning of the building but there was no contract document provided and the contractor was paid before starting the job.

Another charge arose from a contract of Sh58 million paid to Lekha Trading Company Limited for EPABX cabling at the Supreme Court via a bank guarantee before the work started.

In her defence, the JSC said, Mrs Shollei presented documents that were not signed and whose author was unknown.

“An internal memo from the Director of ICT shows that the items supplied did not meet contract specifications and the Judiciary was supplied with refurbished or stolen items,” the JSC said.

She was also alleged to have authorised the payment of Sh26.4 million for prefabricated courts in Bomet, Marimanti, Othaya and Wang’uru.

“CRJ admitted authorising an irregular payment for prefabricated court houses in the sum of KSh82,737,000.00 to JKUAT Enterprises Ltd for interim architectural consultancy without any interim certificate of works being provided,” JSC added.

WRONG TO ADDRESS MEDIA

On the charge of misbehaviour, JSC stated that Mrs Shollei had admitted she was wrong to address the Media on August 19, when she referred to the commission’s decision as “irresponsible”.

“She stated she had a right to administrative action. The CRJ’s response confirms the allegation that she prefers to employ temporary and casual staff instead of advising the JSC to employ the necessary staff to support core judicial functions,” said the JSC.

Mrs Shollei was also reported to have admitted issuing government vehicles to junior officers in her office, paying them special perks, and giving them titles without the authority of the JSC.

Her sacking came barely 24 hours after Mrs Shollei made her last appearance before the National Assembly’s Budget and Appropriations Committee, where she said the JSC had received Sh125 million in allowances for their meetings over the past two-and-a-half years and that it had made her life difficult.

She had also said that members of the JSC were ignorant of the Public Finance Management Act. She told MPs that she has had a difficult working relationship with the body, which is her employer.

“The issue of allowances has put me in the problems that I have with the commission right now,” she told the team. “I have let the commissioners have their way so that I get to work. The more I put my foot down, the more I get into trouble.”

Dr Mutunga’s statement suggested otherwise.

He said investigations into the registrar’s behaviour “present an opportunity to launch the rebirth of the Judiciary’s transformation”.

“The transformation agenda is aimed at delivering justice to the people of Kenya, but may very well threaten and dismantle the old and new networks of corruption and patronage. What we have experienced is a transformation moment, and we intend to build on the opportunity this challenge has presented. We shall come out much bolder, stronger, efficient and effective in all spheres of the Judiciary,” he said.

Minutes after the press conference at the steps of the Supreme Court building, a secretary at Mrs Shollei’s office told a Nation reporter that she was not in; that she had left earlier. Her allotted space in the parking lot in front of the building was occupied by a shining new black Volkswagen Passat.

On Saurday evening, Mrs Shollei’s lawyer, Mr Donald Kipkorir, said on his Twitter account, @DBK017: “My client and I walked out of JSC. Today is a dark and sordid day in the history of JSC as their prosecution of Mrs Shollei was #al-Shabaab justice.”

JURISDICTION

On Wednesday, Mrs Shollei had claimed that the JSC does not have jurisdiction to move in the way they have done against her and that the office of the Chief Registrar of the Judiciary is the accounting officer of the Judiciary and, under the Constitution and The Public Finance Management Act, she is only answerable to Parliament, Auditor-General, PPOA and EACC.

Dr Mutunga said the two months of a detailed disciplinary process initiated against Mrs Shollei was long and tortuous but necessary because JSC had committed itself to a scrupulous and fair process to inquire into the matter of public interest.

“In spite of widespread provocation, JSC has deliberately made no public statements in order to protect the process and respect the decision made earlier by both parties not to try the matter in the Media,” said Dr Mutunga.

Dr Mutunga added that on September 9, 2013, JSC served Mrs Shollei with 87 allegations touching on financial and human resource mismanagement, irregularities and illegalities in procurement and misbehaviour.

He maintained that the investigations were not designed to be a witch-hunt nor whitewash against the chief registrar. Dr Mutunga said Mrs Shollei admitted 33 allegations and denied 38 others. He said her responses to the allegations were equivocal, evasive and contradictory.

“There have been numerous allegations of bias, misconduct and innuendo of illegality around the payment of allowances on the part of JSC,” he said.

He said JSC would engage all key stakeholders, including Parliament and the public, on the allegations as a form of accountability for the work it did and the remuneration it drew.

“The JSC has deliberately chosen to avoid any politicisation or sensationalisation of what it views as an internal disciplinary process,” said Dr Mutunga.

He said during the deliberations, JSC found many of the responses by Mrs Shollei grossly inadequate and offered her an opportunity to explain but, instead, she made a number of objections— which the commission declined to entertain.

He said the commission had witnessed deliberate disinformation, distortions and sideshows intended to distract focus from the grave allegations under investigation.

Reported by JOHN NGIRACHU and OUMA WANZALA.