Former PS and tourism board boss found guilty of Sh9m fraud

A former permanent secretary and top official at a State firm have lost an appeal against their conviction over a Sh8.9 million fraud.

Rebecca Nabutola, who once served as Tourism PS and Achieng Ong'ong'a, a former managing director of the Kenya Tourism Board, were yesterday dealt a blow after Justice Ngenye Macharia upheld their conviction over willful failure to comply with procurement laws.

He ordered them to serve a jail sentence of one year or in the alternative, pay a Sh500,000 fine.

In 2012, the then Anti-Corruption Magistrate Nyambura Gacheru had ordered the two Government officials to serve a jail term of three years in prison or to pay a fine of Sh1 million and Sh1.5 million respectively.

They only served three months in prison before High Court Judge Msagha Mbogholi released them on a Sh500,000 cash bail pending their appeal.

Yesterday, Justice Macharia cleared their co-accused, tour operator Duncan Muriuki of any wrongdoing, saying Government officials were solely to blame for any fraudulent deals at the ministry.

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Mr Muriuki had faced conspiracy to defraud and conflict of interest charges contrary to the law. He was to serve a seven-year jail term without the option of a fine.

Macharia agreed with the trial court that Mr Ongo'nga', having being the one who single-sourced for the tender, was to be held responsible for any fraudulent payments to Muriuki.

The businessman was also required to pay Sh17.8 million in fines or serve three years in default and to refund Sh800,000 to the Government, failure to which he was to serve a further one year in prison.

The three were found guilty in 2012 of defrauding the ministry during a trip that was organised for permanent secretaries to Maasai Mara.

The June 2007 tour, which was also attended by the then President Mwai Kibaki, was aimed at familiarising PSs and other dignitaries with the marketing of wildebeest migration.

Yesterday, Macharia cancelled the bond terms and directed the two to either pay the fine or serve the sentence. The judge noted, as the accounting officer, Ms Nabutola should have notified authorities of the suspicion of fraud but according to the judge, she never raised the alarm.

She observed that while Ongo'nga' was required to inform the ministry of the cost of the tour, he gave two contradicting figures and could not account for how the money was spent.