The Ethics and Anti-Corruption Commission (EACC) has announced the arrest of nine people over the alleged fraudulent disbursement of more than Sh1.57 billion from a government-funded project.
In a statement issued on Tuesday, the commission said the arrests followed investigations into the alleged embezzlement and suspected fraudulent release of Sh1,569,582,338.20 from a programme that was implemented by the National Treasury with support from an international development partner.
According to the commission, investigations indicated the money was allegedly transferred from a National Treasury development account and later channelled to 23 private entities for goods and services that investigators believe were never supplied or rendered.
The project was intended to support small-scale farmers by improving access to affordable financing and was implemented between the 2013/2014 and 2023/2024 financial years.
The commission further said its investigations indicated that programme officials allegedly used false and forged documents to account for the funds.
Investigators also alleged that an unauthorised account was opened in the name of the programme, through which Sh175 million was reportedly received before being allegedly laundered and misappropriated, with a substantial portion reportedly withdrawn in cash.
The commission further said it identified financial links between programme officials and some of the private entities that received the money, which it said raised concerns over compliance with public financial management and accountability requirements.
Following the completion of investigations, the commission said it forwarded the inquiry file to the Director of Public Prosecutions, who approved the prosecution of 20 public officials, companies and company directors.
The commission said those approved for prosecution are expected to face charges that include unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences.
It said the nine people arrested on Tuesday are expected to appear before the Milimani Law Courts on Wednesday.
The anti-graft agency also directed 11 other individuals to present themselves at its Integrity Centre in Nairobi or the nearest EACC office for processing.
In addition to the criminal proceedings, the commission said it will seek the recovery and forfeiture of public funds and assets that investigations establish were acquired through alleged corrupt conduct or other unlawful means.
The commission reiterated its commitment to safeguarding public resources and pursuing accountability where there is evidence of alleged loss or misuse of public funds.
"The EACC remains committed to protecting public resources and ensuring persons responsible for loss or misappropriation are held accountable," the commission said.
