Relief for Balala as anti-corruption court allows termination of Sh3.3bn graft case

Former Tourism Cabinet Secretary Najib Balala can breathe a sigh of relief after the anti-corruption court in Malindi allowed the termination of a Sh3.3 billion graft case against him. This is after the Director of Public Prosecutions (DPP) applied to withdraw it.

The DPP on Wednesday told the court that investigations into the case had not been completed and the time required to complete the probe was not known.

“The application by the DPP is allowed and the accused are discharged under Section 87 (a) of the CPC,” ruled Chief Magistrate James Mwaniki.

Under Section 87 (a) of the CPC, an accused once released can be re-arrested and charged afresh should there be new evidence in the case. However, in his ruling, the magistrate noted that any decision by the DPP to withdraw the case under this law and have the accused re-arrested and charged afresh on account of the same facts might be treated as an abuse of the court process.

The magistrate further noted that the habit of the prosecution charging individuals while investigations are ongoing seems to have been gaining traction. According to the court, withdrawal of the case as sought by the DPP is tantamount to having an accused waiting for a disaster thus there is a need to have finality.

Alleged abuse of office 

In the case, he had been charged alongside former Principal Secretary Leah Gwiyo with abuse of office in the construction of the Ronald Ngala Utalii College based in Kilifi County.

Mr Balala faced charge over allegations that the Tourism Fund fraudulently paid billions of shillings to set up the Coast branch of Kenya Utalii College (later renamed Ronald Ngala Utalii College). The offence was allegedly committed on December 13, 2010 within Mombasa.

The prosecution argued that the Sh3.3 billion consultancy jobs awarded to Baseline Architects Ltd, Ujenzi Consultants, Armitech Consulting Engineering and Westconsult Engineers, was against a Cabinet decision, and constituted an improper award to private firms.

According to court submissions, the contract award went contrary to a Cabinet resolution not to engage private consultants, which led to irregular payment of Sh3.3 billion to the firms for design, documentation, supervision and contract management consultancy services.

However, Mr Balala and Ms Gwiyo denied the charges and were released on a Sh5 million bond. 

They were initially arrested in December 2023 by detectives from the Ethics and Anti-Corruption Commission (EACC). 

Joseph Odero, a consultant with an engineering firm, was also arrested. He denied unlawfully acquiring Sh292.4 million from the Tourism Fund formerly Catering and Tourism Development Levy Trustees (CTDLT).

Former chief executive officers of CTDLT Allan Chenane and Joseph Cherutoi and former procurement manager Norah Mukuna were also facing corruption charges.

Others accused were Eden Odhiambo, Ruth Sande, Flora Ngoge, Joseph Ndung’u, and George Muya who were members of the tender committee of the CTDLT.

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