BY SAM ALFAN.
The High court has has ordered the forfeiture os Sh32 million belonging to former PS Lilian Omollo to the government, saying it was proceeds of crime.
Justice Mumbi Ngugi found that the over Sh32 million held in the bank accounts of Omollo, her children, Sahara Consultants, LIDI holdings limited and LIDI Estates limited are proceeds of crime.
In her 70 page judgment, the Judge declared that all monies in the bank accounts of the former PS, her children and companies associated with her were liable for forfeiture to the state.
“A declaration is hereby issued that a total of USD 105,293.7 and Kshs. 22,445,487.74 million held in bank accounts in the name of Lilian Wanja Omollo Mbogo T/A sahara consultants, Lidi Holdings limited, Lidi Estates limited and her three children at Equity bank ,Community bank in Nairobi and Diamond Trust Bank limited, capital centre and village market branches are proceeds of crime and therefore liable for forfeiture to the state, ” Judge Ngugi declared.
The judge also declared that USD 67,331.9 in the name of Lilian Omollo trading as Sahara consultants and USD 28,981.97 belonging to Lidi Estates limited at Equity bank are proceeds of crime.
The Anti-Corruption Judge agreed with Assets Recovery Agency that criminal conviction is not a condition that must be met before making an order for forfeiture is made.
The judge found that ARA did not violate any of her rights.
“Their argument seems to be that it is only the criminal court that can determine whether or not they hold funds which are the proceeds of crime,” the Judge said.
Last year, the court advised the former PS to adjust her lifestyle to fit her current financial status.
This is after the court allowed her to withdraw Sh 2 million from the frozen accounts held at Diamond Trust Bank Capital Centre branch to help meet her living expenses.
The orders were granted after Omollo petitioned the court to release to her Sh2.26 million monthly, arguing she cannot meet her family needs for food, housing and school needs and the maintenance of her three motor vehicles.
But the rest of the money remained frozen.
In the decision, the judge said that there is a high public interest in the money subject of criminal cases facing her which cannot just be wished away.
ARA filed an application seeking to have millions of shillings belonging to former Youth Affairs PS Lilian Mbogo Omollo forfeited to the state.
The money were held in several accounts in her name, companies where she a director while other accounts belong yo her three children.
ARA said in the petition that they suspect the monies are proceeds of crime and therefore liable for forfeiture to the state
Through senior state counsel Mohamed Adow, the agency urged the court to declare total of USD 105,293,7 and Kshs. 22,445,74 million held ten accounts in equity Bank Limited , community branch Nairobi and Diamond Trust Bank Limited , Capital centre and village Markert in the names of Lillian Mbogo, Sahara Consultant , Lidi Holdings Limited , Lidi Estates as well as her three daughters forfeited to the government.
The agency also wants USD 28,981,97 , Kshs 2,297,495,00, 257,220 and USD 8,979.83 held at equity bank in the name of Lidi Estates Limited forfeited to the state saying they monies are proceeds of crime.
Omollo’s seven bank accounts had Sh 20.6 million while that of her children Sheela Mbogo, Stephanie Mbogo and Shalom Kamwetu had Sh12.5 million.
The Assets Recovery Agency had revealed to the court that millions of shillings, including a cash deposit of Sh 20 million on April 20, were wired to the accounts registered to Sheela, Stephanie and Shalom.
It is said that the said deposits were made in a period when more than Sh1 billion was stolen from the NYS through fictitious invoices for goods such as firewood and stationery and multiple payments on one supplier invoice.
Omollo, through lawyer Stephen Ligunya, wants the court to vary the freeze orders and allow her withdraw Sh6.8 million quarterly for basic needs.
But Assets Recovery Agency had opposed to the application saying the same has no merit and is misconceived.
“Allowing her to access the funds will end up the case useless, she has other means, we pray that you dismiss the application, “said the agency through lawyer Mohammed Adow.
The agency in their court papers, claims that investigations have revealed that the funds in issue were acquired through unlawful activities and are part of the funds embezzled from the National Youth Service.
“The Agency did not preserve a total of 9,805,426.82 shillings held in two accounts hence the assertion that the applicants are subjected to undue hardships , sufferings and unable to pay their expenses due to the court is not true,” claims Adow
“Omollo has not satisfactory explained how she acquired the funds in issue. She has not reasonably mentioned anything about the acquisition of funds in issue,” said the agency.
The agency further said Omollo besides stating she was not involved in the NYS scandals she has not satisfactorily explained how she acquired the funds in issue.
“She may claim it’s her property but how did she acquire the same? She has not reasonably mentioned anything about the acquisition of funds in issue,” said the agency.
According to the agency the former PS earns a salary of 340,000 shillings which they it’s enough to sustain her bills.
The court was told that Omollo has a farm which generates money adding that she has means to cater for her mortgage and other bills.
But the agency told the Anti-Corruption Court that there is nothing linking funds belonging to former PS Lillian Omollo, which have since been frozen with alleged farming business she allegedly has in Siaya County.
In an affidavit filed in court by investigator Isaac Nakitare , he said he travelled to Uyoma, Rarieda in Siaya County with a colleague seeking to establish the farming business Omollo claimed she was doing.
The former PS stated that she has greenhouses, where she farms tomatoes, cucumbers, watermelons among other crops. She said she took up serious farming five years ago and some of the deposits made the frozen accounts were proceeds from the farm.
She claimed that she operate a joint farming with her husband Dick Aching Oneko in Siaya County.
Surprisingly according to the court documents, despite the said farm produce sold in Siaya, the money was deposited in Nairobi instead of the nearest Bank.
Oneko also claimed source were earnings from a consultancy firm known as Nile International where he offered consultancy services in South Sudan.
Oneko said he used to be paid in cash but did not sign anywhere to confirm receipt. He also brought the said money in the country without declaring the same at the point of the entry, against the law.
But in the statement, Nakitare said that they established that there was no farm in existence as alleged but there exist “a piece of land with shrubs”.
The investigator said the farming business is a disguise meant to conceal the source of the funds and “classical scheme.
