Court freezes Ksh28M linked to KNH CEO in corruption case
Embattled KNH CEO Evanson Kamuri, who was arrested on Wednesday, May 22, 2024, over allegations of corruption, has suffered another blow.
A Nairobi court has issued orders freezing Ksh 28 million allegedly corruptly acquired from the hospital.
In a ruling delivered by Milimani Chief Magistrate Celessa Okore, the Ethics and Anti-Corruption Commission (EACC) was granted its request to freeze Kamuri’s Ksh 28 million, held in two bank accounts at HFC Bank, for 21 days pending investigations into allegations of corruption and economic crimes involving Ksh 634,465,000.
“An order freezing Ksh 10 million and Ksh 18 million domiciled at Housing Finance Company for 21 days to enable the commission to complete investigations before instituting recovery proceedings,” Magistrate Okore ordered.
The court also granted EACC investigator Paul Mugwe permission to probe the two accounts belonging to the KNH boss. This includes scrutinizing the original account opening documents, bankers’ books, original cheques, mandate cards, transaction slips, disbursement authorizations, large transaction forms, and statements from January 1, 2019, to date.
Corruption
The Anti-Graft body sought the orders, arguing that preliminary investigations have established that Kamuri, who was arrested following a raid at his residence, has accumulated wealth disproportionate to his known legitimate sources of income.
“There exists significant disproportion between his assets and/or wealth and his legitimate source of income to the tune of Ksh 800 million,” the EACC told the court.
When seeking the freezing orders, the commission stated that the KNH CEO had been involved in corruption and economic crimes, and there was a need to prevent the dissipation of funds believed to be public resources.
The commission is investigating allegations that Kamuri has engaged in abuse of office, conflict of interest, and irregular award of tenders worth Ksh 634,465,000 to companies associated with him.
“Preliminary investigations have revealed that Kamuri, in his capacity as the CEO of KNH, engaged in abuse of office, conflict of interest, and procurement irregularities in awarding tenders for the supply, installation, testing, and commissioning of a medical oxygen generating plant, and a second tender for support of the Enterprise Resources Planning System and support hardware and software components at the hospital to Biomax Africa Limited,” the court papers read.
Hours after the court issued the orders, investigative agency detectives raided the KNH boss’s premises and properties in a bid to gather valuable evidentiary material to support the ongoing investigations.
The commission has confirmed that the CEO, who had been arrested following the raid, was released from the EACC Integrity Centre Offices after recording a statement.
The EACC states that the KNH CEO’s case is part of wider investigations targeting various state corporations, where some public officials are embezzling public funds, thereby compromising the delivery of essential services to the citizenry.
