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| Machakos Senator Johnstone Muthama |
By WILFRED AYAGA
Kenya: Four senior personalities, including Machakos Senator Johnstone Muthama, former PS Bitange Ndemo and Law Society of Kenya (LSK) Chair Eric Mutua could be prosecuted over a 5,000-acre piece of land transaction in which shareholders are said to have lost over Sh1 billion.
The Directorate of Criminal Investigation claims they were part of a conspiracy to defraud over 6,000 shareholders of the Malili ranch in a deal where the Government purchased the land without any due diligence being conducted.
Also recommended for prosecution are former Commissioner of Lands Zablon Mabea, James Waweru, formerly of the AG’s office, and three directors of the company.
A letter from the CID Director to the Director of Public Prosecutions recommends they take responsibility for a series of acts that led to the shareholders of the company losing money through a carefully planned criminal scheme.
“Following the unauthorised sale of the land, some of the shareholders have not received even a single shilling,” says the letter.
Muthama is accused of being part of a cover up in the whole process and conspiring with Mutua to process dubious minutes of an AGM in which the resolutions to sell the land ware allegedly reached.
Three of the seven directors of the company Julius Kilonzo, Peter Kanyi and Josiah Manuki should face charges of being core players in the conspiracy and benefiting from the proceeds of the sale, according to the letter.
Ndemo on his part is accused of failing to exercise due diligence before committing the Government in the purchase of the land. He is also said to have ignored advice from the Solicitor General over the purchase of the land.
“Investigations carried out established that the transaction was not above board as it was shrouded in fraud and due diligence was not exercised by the PS when the whole process was being carried out,” the letter said.
It recommends that Ndemo be charged with abuse of office. Yesterday, a lady who answered Ndemo’s cellphone said he was out of the country until next week.
The CID terms Mutua as “the mastermind of the scheme” and says that during investigations, he failed to account for over Sh14.5 million in his account. The Standard on Saturday could not get a comment from Mutua as his phone was off.
The police suspect that the money was part of the proceeds from the sale of the land. Contacted for comment yesterday, Muthama termed the allegations “baseless”.
“Reading the letter, there is no where indicated that I pocketed even a single penny from the transaction. The allegations are completely false, “he said.
He promised to issue a comprehensive statement this morning.
