Sh80m order to halt seizure of ex-CEC’s assets

The High Court has directed a former Machakos CEC to deposit Sh80 million to stay the execution of a ruling that allows the Ethics and Anti-Corruption Commission to seize his assets worth Sh91 million.

The court had in October last year allowed EACC to seize the assets belonging to Urbanus Wambua after it found that the assets, mostly cash and related assets, were unexplained.

Wambua had worked as a county executive committee member of the Machakos government between 2014 and July 2021.

The assets included Sh740,692 at Cooperative Bank, Sh10,210,385 at Equity Bank and a residential building valued at Sh80,251,815, for which the court entered judgment in favour of the government.

The monies and the assets were to be forfeited to the government. Justice Patrick Otieno in his ruling delivered on October 28, directed EACC to recover all the assets that Wambua unlawfully acquired.

The court said the assets were acquired through corruption, conflict of interest and fraudulent dealings. But a dissatisfied Wambua lodged a notice of appeal the following day, before filing a notice of motion on November 7, 2024, seeking orders to stay the execution of the judgment.

He asked the court to stay the execution pending the hearing and determination of his appeal at the Court of Appeal.

He argued that his appeal had high chances of success hence the need to stay the judgment, otherwise he would suffer substantial loss.

But the EACC opposed the application, arguing Wambua had not provided security for due performance of the decree.

It also said Wambua’s application had not met the threshold for substantial loss. EACC also argued that the matter was of public interest and as such, a stay of execution ought not to be granted.

Justice Benjamin Musyoki, having heard from both parties, framed two issues for determination; whether Wambua would suffer substantial loss if the application was not granted and the nature of security required.

He said it was tedious recovering funds from the government and ruled that the monies in the bank accounts be kept in a neutral ground to balance the rights of both parties.

Judge Musyoki said it was the discretion of the court to determine what security is appropriate and sufficient to satisfy the decree.

“The main point of consideration in ordering provision of security is that the court should not suspend the successful party’s enjoyment of fruits of its litigation without giving it the comfort of a safe and smooth haven should the appeal not succeed,” Musyoki said.

EACC had proposed that the security be of equal value of the building which is Sh80,251,815. The judge however said such money should not be made to lie idle in court, but should be kept where it will attract interest, noting that the period the intended appeal will take is not known.

“I thus order that there be stay of execution of the judgment of this court dated October 28, 2024, on condition of the defendant (Wambua) shall deposit Sh80,251,815 in an interest earning account with a reputable bank in Kenya,” Musyoki ruled.

The court directed that the deposit be made within 90 days from the date of ruling on February 28 and that the account be operated jointly by advocates for both parties.