Sirisia MP John Waluke, ex-CS's mother guilty of maize fraud

Waluke
New Content Item (1)
Photo credit: File | Nation Media Group

What you need to know:

  • Ms Wakhungu and Mr Waluke are shareholders of Erad Supplies & General contracts ltd, which was paid Sh313 million by NCPB after accusing the agency breaching a contract in 2004. 

  • A third director of Erad was the late Jacob Juma whom the court heard had received Sh113 million out of money paid by NCPB.

Sirisia MP John Waluke and his co-director Grace Wakhungu will spend the next three days in police custody while they await sentencing for fraudulently receiving more than Sh300 million from a State agency.

Chief magistrate Elizabeth Juma directed that the two be held at Kileleshwa police station until Thursday when she will sentence them for defrauding the National Cereals and Produce Board (NCPB). 

“Since the status of the accused has changed, their innocence has been determined after the court established they are guilty they cannot continue to be out on bond,” she ruled.

She said the bail terms imposed on the two lapsed immediately a finding was made that they are guilty as charged.

JOB AT RISK

The MP's job now hangs in the balance if he is sentenced to more than six months. 

Ms Wakhungu is the mother of former Environment Cabinet Secretary Judi Wakhungu.

Ms Wakhungu and Mr Waluke are shareholders of Erad Supplies & General contracts Ltd, which was paid Sh313 million by NCPB after accusing the agency breaching a contract in 2004. 

A third director of Erad was the late Jacob Juma whom the court heard had received Sh113 million out of money paid by NCPB.

The magistrate stated that the Ministry of Agriculture had in a letter dated July 19, 2004 instructed NCPB to purchase 2 million bags of maize for famine relief and strategic grain reserve.

The company had then won an award for the supply of 40,000 metric tonnes of maize but the tender was allegedly cancelled for lack of funds.

Ms Juma ruled that the prosecution had proved all the charges against Mr Waluke and Ms Wakhungu. 

FALSE INVOICE

The charges against them stated that being directors of Erad Supplies & General Contractors Ltd, they presented a false invoice of $1,146,000 (Sh115,072,725) on February 24, 2009 as evidence in the arbitration dispute between the company and NCPB.

They allegedly purported that the invoice was to support the cost of storage of 40,000 metric tonnes of white maize, which was allegedly incurred by Chelsea Freight, a South African firm, and were paid Sh13,364,671 in June 2013. 

They allegedly obtained Sh297,386,505 on March 19, 2013 for loss of profit and interest allegedly incurred by Chelsea Freight. On the last count, they are accused of obtaining $24,032 (Sh2,413,113).

The duo defended the payment saying it was an arbitration award which was granted in their favour. 

New Content Item (1)
New Content Item (1)


On its part, NCPB said efforts to explain before the arbitrator and the court that the claim was fraudulent could not be believed. The case, the court heard, was based on forged documents and they obtained Sh314 million from NCPB by attaching its properties and freezing its accounts. 

EACC said the two used an invalid tender security bid to get the contract and the company should never have been evaluated. 

FORGED DOCUMENTS

The court heard that they obtained false payment using false testimony and forged documents. 

This was after the South African firm, which allegedly stored the maize, denied dealing with Erad.  

The magistrate found Mr Waluke guilty of three counts of obtaining money by false pretences while Ms Wakhungu was convicted in five counts including a charge of perjury.

Defence lawyers argued that the two were sickly and required continuous medical attention while in custody.

“Given the current Covid-19 pandemic I urge this court to remand the two convicts at the Kileleshwa Police Station,” two defence lawyers pleaded with Ms Juma.

Ms Juma heard that the two cannot run away from the court’s jurisdiction due to the Covid-19 pandemic which limits movement of persons in and out of Nairobi.

The magistrate was urged to grant the two convicts seven days to prepare their defences before sentence is passed.

State prosecutor Mercy Gateru had urged the court to treat the two as first offenders as she did not have their previous criminal record.