The former project accountant at PROFIT, Billy Obango, and co-accused, when they appeared at the Milimani Anti-Corruption Court on Tuesday /LEAH MUKANGAIThe Sh1.57 billion corruption trial involving senior National Treasury officials and business proprietors today laid bare the scope of charges at the Milimani Anti-Corruption Court.
Principal Magistrate Rose Ndombi heard that the second accused person, project accountant Billy Otieno Obango, faces 45 individual counts on the charge sheet.
Obango was presented to the Ethics and Anti-Corruption Commission for formal processing.
The former project accountant was later arraigned, where he pleaded not guilty to all the charges. He was granted bond of Sh15,000,000 or a cash bail of a similar amount.
His counsel informed the court that Obango had been unable to present himself earlier due to illness and urged the court to release him on reasonable bail terms, arguing that he is not a flight risk, is the sole breadwinner for his family and takes care of his mother.
Counsel further submitted that Obango would attend court as required.
The state did not oppose the application but requested that Obango deposit his passport with the court.
His charges stem from allegations that he played a pivotal role in creating unauthorised banking channels and forging top-level National Treasury executive memos to funnel public funds into private hands.
Obango is accused, alongside Programme Coordinator John Ngure Kabutha, of abusing his position to authorise payments totalling hundreds of millions of shillings to various private companies.
This includes a specific count where he is alleged to have improperly conferred a financial benefit of Sh799,844,648.40 upon himself through authorised payments from the programme's bank account.
He was also accused of knowingly and fraudulently using a false National Treasury memo and allegedly opening a KCB bank account in the name of the PROFIT Programme without lawful authority.
In addition, he faces charges that are part of the broader indictment against all accused persons, which include unlawful acquisition of public property, acquisition of proceeds of crime and money laundering.
The court issued arrest warrants for the 22nd, 23rd, 24th, 25th, 26th, 35th and 36th accused persons who failed to present themselves for plea-taking.
The 14th accused, Paul Mukasiali Shilaho, proprietor of Kemula Agencies and Shilal Supplies, pleaded not guilty to the charges against him.
His defence counsel moved for release on reasonable cash bail, citing medical and financial circumstances. The advocate told the court that Shilaho suffers from high blood pressure and diabetes, maintains a known abode and presents no flight risk.
Describing his client's situation as "very peculiar," counsel submitted that Shilaho was "approached for a business case where he was only supposed to get a percentage".
“Paul Shilaho is a poor man, does not run a business that will enable him to raise a very good amount of cash paid and he is not in formal employment," the court heard.
Counsel proposed cash bail of Sh500,000.
The state raised no opposition to granting bond terms, provided conditions were attached mandating that Shilaho must not interfere with witnesses and must deposit his passport with the court.
However, defence counsel promptly informed the court that Shilaho does not own a passport and therefore has no travel document to surrender.
Shilaho, who had pleaded not guilty to charges against him, was granted bond of Sh1,500,000 or an alternative cash bail of Sh1,000,000.
Concurrently, legal representatives for the fifth and sixth accused persons notified the court of their intention to file formal applications to substitute their previously set cash bail terms with bond securities.
Magistrate Ndombi scheduled November 3, for the mention of the case, directing all suspects currently out on bond alongside the newly processed individuals to appear on that date for further directions.
The case stems from allegations that Sh1.57 billion was fraudulently disbursed from the National Treasury Development Account to the PROFIT Programme and subsequently channelled to 23 private entities for goods and services that were never supplied.
The programme, intended to facilitate small-scale farmers' access to affordable financing, was implemented between the 2013/2014 and 2023/2024 financial years.
Investigations established that programme officials used false and forged documents to account for the funds and opened an unauthorised KCB Bank account, through which Sh175 million was received, laundered and embezzled, with substantial portions withdrawn in cash.
The accused face charges including unlawful acquisition of public property, abuse of office, money laundering, acquisition of proceeds of crime and uttering false documents, among other offences.
