EX-Governor Obado, Family Off the Hook as Court Drops Ksh 73.5M Graft Case

A Nairobi anti-corruption court has permitted the withdrawal of a high-profile corruption case involving former Migori Governor Okoth Obado, his children and several associates after the government recovered assets valued at more than Ksh 235 million.

In a ruling delivered on Friday May 15, Senior Principal Magistrate Celesa Okore determined that the Office of the Director of Public Prosecutions acted within the law in seeking to terminate the criminal proceedings through an out-of-court settlement mechanism.

The court further directed that passports confiscated during the proceedings be returned to all accused persons and ordered the refund of cash bail previously deposited before trial, effectively bringing to a close one of the major corruption cases linked to the former county administration.

Court Upholds DPP’s Decision

The criminal proceedings stemmed from allegations that public funds amounting to Ksh 73.5 million were irregularly acquired during Obado’s tenure as governor of Migori County.

Prosecutors had accused the former county boss alongside family members and close associates of participating in fraudulent schemes involving county finances.

However, the matter took a different turn after negotiations between the former governor and prosecutors resulted in a settlement agreement that saw assets worth over Ksh 235 million surrendered to the state.

According to court findings, the value of the forfeited properties substantially exceeded the amount cited in the criminal charges, a factor that influenced the magistrate’s determination that the objectives of the prosecution had already been achieved through asset recovery.

“The court has not established any misuse of prosecutorial authority by the DPP in pursuing the settlement framework provided under the law,” Magistrate Okore ruled.

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Assets Handed Over to State

Court records indicated that the agreement emerged from Alternative Dispute Resolution negotiations initiated by Obado in a matter where he and 17 others had been accused of siphoning county funds through questionable procurement arrangements.

Under the settlement terms, the former governor agreed to relinquish assets estimated at Ksh 235.6 million, including eight parcels of land and two Toyota Land Cruiser vehicles.

The agreement followed earlier civil recovery proceedings filed before the High Court in Asset Recovery Cases No. 32 of 2018 and No. 10 of 2022.

The magistrate, Okore, noted that the resolution of the matter was sufficient to address the issues the prosecutors wished to solve by putting up the case in court, stating that the law allows negotiation where the public coffers are restored.

Also Read:EACC Raids Homes of Top Sports Officials Over Alleged KSh3.8 Billion Graft

Clash Between EACC and ODPP

The withdrawal application also exposed differences between the Ethics and Anti-Corruption Commission and the Office of the Director of Public Prosecutions over the handling of corruption cases involving both criminal prosecution and civil recovery.

The anti-graft agency argued before the court that asset recovery proceedings should remain independent from criminal prosecutions, warning that merging the two approaches could undermine accountability efforts.

Despite those objections, the court rejected claims that the settlement was unconstitutional or contrary to public interest simply because it generated criticism from sections of the public.

“If a process is undertaken within the confines of the Constitution and existing laws, the court cannot invalidate it solely because it may appear unpopular,” Magistrate Okore stated in her ruling.

Initially, investigators had pursued recovery claims exceeding Ksh 1.9 billion from Obado and more than 20 individuals accused of orchestrating fictitious tenders and diverting county resources during his administration in Migori County.

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ODPP Renson M. Ingonga during a past event. PHOTO/ODPP.