The Ethics and Anti-Corruption Commission (EACC) has moved to the High Court in Mombasa seeking orders to compel Antony Muhanji, a former senior employee of the Kenya Ports Authority (KPA) to pay to the Government of Kenya, Sh78,161,858 that he illegally acquired from KPA through a fraudulent tender.
The tender was illegally awarded to Muhanji’s private company namely Mukitek Investment Limited to undertake excavation and concrete works at KPA.
In the suit filed November 21, the Commission wants the High Court to declare the Sh78,161,858 as proceeds of crime and issue reinstitution orders compelling Muhanji and his company to pay the amount to the Government of Kenya.
EACC, through its Lower Coast Regional Office in Mombasa, received an allegation of irregular and fraudulent procurement at KPA that led to fraudulent acquisition of public funds involving the Mukitek Investment Limited, a company owned by Muhanji a former senior public official employed at KPA.
The Commission undertook investigations, which established that Mukitek Investment Limited, was fraudulently awarded a tender which it had applied for using forged documents.
It was established the contract for excavation and concrete works at KPA was supervised by Muhanji as a Project Manager, who was also a Director of the Mukitek Investment Limited and a beneficial owner to the company’s bank account.
The commission says Muhanji engaged in conflict of interest contrary to Section 42 (1) Anti-Corruption and Economic Crimes Act, No. 3 of 2003 and Section 66 of Public Procurement and Asset Disposal Act (PPADA), 2015.
“Mukitek Investment Limited was paid a sum of Sh78,161,858.45, which was used to purchase property in Nairobi under the name of Stone Contractors Limited.”
When investigations commenced, the Commission identified and froze Sh52,191,704.45/= belonging to Mukitek Investment Limited, pending finalization of investigations and subsequent recovery proceedings. The purpose was to ensure that in the event the Commission wins the recovery suit, any forfeiture and reinstitution orders issued by the Court will not be in vain.
The Commission, on Monday, 21 November, 2022, filed a suit in the High Court in Mombasa seeking a declaration that the Sh78,161,858.45 paid by the Kenya Ports Authority to Mukitek Investment Limited was fraudulent and illegal, and, therefore, constitutes proceeds of crime liable to recovery by EACC.
It sought an order for forfeiture and restitution of Sh78,161,858.45 directed to Muhanji, Mukitek Investment and their associates.
The commission sought an order that Sh52,191,704.45 already frozen by the Commission, together with interest thereon be forfeited to the Government of Kenya- and released forthwith to Ethics and Anti-Corruption Commission.
The Commission went to Court pursuant to section 53 (3) of the Anti-Corruption and Economic Crimes Act, No. 3 of 2003, which vests in EACC the mandate to institute recovery proceedings against any person who does anything that constitutes corruption or economic crime.