How Two Treasury Officials Illegally Took Ksh39 Million and Were Ordered to Return It
A serious corruption case has rocked the National Treasury after the High Court ordered two officials to return Ksh39.1 million that they illegally obtained through unauthorised allowances and benefits.
The two officials took advantage of outdated and cancelled government circulars to claim extra money. These circulars, which are issued by the National Treasury and the Salaries and Remuneration Commission (SRC), clearly state which allowances are permitted and which ones are not.
They provide official instructions on the approval and limitations of payments to public servants.
However, the two officials deliberately ignored these rules and used old, withdrawn circulars to award themselves additional perks.
According to the Ethics and Anti-Corruption Commission (EACC), they also relied on unauthorised and even duplicated circulars to make money fraudulently. The commission discovered that the two received multiple overlapping allowances without getting the required approval from SRC.
The High Court has now ruled that all the money recovered during the investigation must be refunded in full.
The ruling was delivered on Thursday, June 4, by Lady Justice Lucy Mwihaki at the Anti-Corruption and Economic Crimes Division of the High Court in Nairobi. In her decision, the judge found that the two officials – one male and one female – had pocketed huge sums of money through fake allowances labelled as task force, extraneous, entertainment, and facilitation allowances. None of these payments had proper authorisation.
The court directed the male official to repay Ksh20,318,000. Already, Ksh11,078,601 had been frozen in his bank account by the EACC. He has now been ordered to pay the remaining Ksh9,239,398.17 in cash.
The female official was also ordered to return Ksh18,862,000. Of this amount, Ksh8,953,988.74 had already been frozen in her bank account, and she must pay the balance of Ksh9,908,011.26 in cash.
The illegal payments came to light in July 2022 after the EACC received several complaints regarding suspected misuse of public funds within the National Treasury.
“EACC investigations found that from January 2020 to June 2022, the two officials received multiple and overlapping allowances that lacked official approval from the Salaries and Remuneration Commission (SRC),” the commission said in its official statement.
The court concluded that the two officers deliberately ignored SRC advisories, which are binding according to Article 230 of the Constitution. It found them guilty of knowingly participating in a fraudulent plan to benefit themselves financially using public funds.
The EACC has praised the court ruling, calling it a significant victory in the ongoing battle against corruption and a strong message that stolen public funds will be recovered.
The commission also noted that the judgment strengthens efforts to ensure accountability and transparency in the management of government resources.
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