Kirubi, 13 others acquitted in Uchumi case
From left: Joseph Munene, Emmanuel Oyugi and Chris Kirubi before the High Court on January 13, 2009 where they were charged together with 11 others with conspiring to defraud Uchumi Supermarkets Limited. All 14 suspects were acquitted May 24, 2011 for lack of evidence to prove fraud. FILE
Former Uchumi directors, among them businessman Chris Kirubi, are not to blame for the downfall of the supermarket, a court declared on Tuesday.
The trial court also said the supermarket chain was not a State corporation and acquitted 14 suspects accused of defrauding the giant retail outlet.
In the ruling, Nairobi chief magistrate Gilbert Mutembei said the prosecution did not produce enough evidence to show the suspects were involved in fraud.
Mr Mutembei delivered the ruling almost seven years after the alleged offences were committed.
According to the charge sheet, Mr Kirubi and 13 others are accused of conspiring to defraud the supermarket chain by selling off the Aga Khan Walk branch for Sh147 million without valuation.
The former directors, according to the Attorney General, failed to ensure the company got the best deal from the sale.
They allegedly sold the property to Allgate Company, which leased it back to Uchumi at Sh1.7 million a month as rent.
The sale of the branch in 2004 preceded the fall of Uchumi Supermarkets, leading to a decision to close the chain of stores.
In his ruling, the magistrate said the evidence by 13 out of the 15 witnesses called to court did not show that the accused defrauded the supermarket.
Mr Mutembei has also put to rest the debate on whether the supermarket was a State corporation that has been a major aspect in the case.
The prosecution had maintained that Uchumi was a State corporation and that the directors had a duty to the public.
“It is clear that Uchumi was not a parastatal and as such none of the board members should be considered as employees of the public,” the magistrate said.
Mr Kirubi had told the court he “was not employed in the public service and Uchumi was not a public property”.
According to him, the government was a minority shareholder, with 26 per cent of shares held indirectly through two State corporations; Kenya Wines Agency Ltd and the Industrial and Commercial Development Corporation.
He also dismissed the issue of valuation, saying the Procurement Act only applied to public entities.
Others also acquitted are Mr Francis Oyugi, Ms Kezziah Muniu, Mr Isaac Awuondo, Mr Kenneth Thairu and Mr Nigel Raph Pavitt.
