Koech pleads not guilty to Sh19m fraud charge

By Evelyn Kwamboka

Former Kenya Medical Research Institute (Kemri) Director Davy Koech has been arraigned in court over alleged fraudulent acquisition of Sh19.3 million.

Yesterday, Dr Koech pleaded not guilty to abuse of office and fraudulent acquisition of the parastatal’s property.

Residents of Nyahururu watch a hippo stuck in the mud at River Uaso Nyiro on Tuesday. The animal is said to have attacked a villager, Mr Joseph Mwendwa, on Monday night before it got stuck. Kenya Wildlife Service staff later rescued the animal.[PHOTO: JAMES MUNYEKI/STANDARD]

He was released on Sh1 million cash bail or Sh3 million with a surety in similar amount.

It is alleged between August 17 and December 13, 2006, he fraudulently acquired Kemri property worth Sh19.3 million.

Koech faces three alternative counts of abuse of office.

It is alleged he used his office to improperly confer a benefit upon himself by transferring Sh19.3 million belonging to Kemri from a Standard Chartered Bank account, Kisumu branch to Nairobi’s Yaya Centre branch.

The Kisumu bank branch’s account was in the name of Kemri Centre for Vector Biology and Control Research to African Medical Services Trust in Nairobi, controlled and operated by him.

title deeds

The Nairobi Anti-corruption Court’s Magistrate Cecilia Githua declined to order Kenya Anti-Corruption Commission to release Koech’s seven title deeds.

"It is premature for the defence to raise the title issue," she ruled.

This was after the Kemri founding director, through his advocate, informed the court KACC had declined to release the seven original titles, which it confiscated on January 29.

Koech said the investigating officers informed him KACC was holding the titles so that he does not deal with them in any way.

"The titles are being held without any court order or a relevant Act," he said. However, the State’s special prosecutor Patrick Kiage said the titles are held in exercise of investigatory powers donated to KACC by the statute.

"KACC has taken lawful custody of the titles for purposes of an ongoing investigation that is not related to this case," he said.

The case will be mentioned on July 23 to establish whether the prosecution has supplied the defence with copies of all its witness statements.