Suspect Surrenders to EACC Over Alleged Ksh1.57 Billion Treasury Fraud
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Charles Cheruiyot has presented himself to the Ethics and Anti-Corruption Commission (EACC) over an alleged Ksh 1.57 billion fraud involving an International Fund for Agricultural Development (IFAD)- funded programme at the National Treasury.
Cheruiyot reported to EACC’s Integrity Centre in Nairobi on Thursday for processing ahead of arraignment, after being directed to present himself alongside 10 other suspects.
His appearance comes two days after EACC announced the arrest of nine suspects following investigations into alleged fraudulent disbursements under the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme.
According to EACC, Ksh 1.57 billion was fraudulently disbursed from the National Treasury Development Account to the programme and subsequently channelled to 23 private entities for goods and services that were never supplied or rendered.
How the funds were allegedly diverted
Investigations also uncovered an unauthorised KCB Bank account opened in the name of the PROFIT Programme.
EACC said Ksh 175 million was received through the account, allegedly laundered and embezzled, with a substantial portion later withdrawn in cash.
Financial links were also established between programme officials and some of the private entities that received funds, according to the commission.
PROFIT was implemented between the 2013/2014 and 2023/2024 financial years with funding from IFAD. Its purpose was to facilitate access to affordable financing for small-scale farmers.
EACC said investigators found that false and forged documents had been used to account for the funds.
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20 suspects approved for prosecution
After completing its investigations, EACC forwarded the inquiry file to the Director of Public Prosecutions (DPP), who approved prosecution of 20 public officials, companies and company directors.
Charges approved include unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences.
Nine suspects were arrested on Tuesday and were expected to be arraigned at the Milimani Law Courts on Wednesday.
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Cheruiyot was among 11 suspects who were not arrested at the time and were instead directed to report to EACC offices for processing.
The EACC also said it will pursue the recovery and forfeiture of public funds and assets that investigations establish were acquired through corrupt conduct or other unlawful means.
Allegations against Cheruiyot and the other suspects are yet to be tested in court.
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EACC CEO Abdi Mohamud Ahmed. Photo/ EACC.