BY SSAM ALFAN.
The anti-graft agency has failed in its bid to recover Sh41.3 million from former National Campaign Against Drugs Abuse (Nacada) chairman John Mututho.
Justice John Onyiego dismissed the claim by Ethics and Anti-Corruption Commission saying the fact that goods were delivered, was sufficient proof that Mututho imported the lockers for Kenyatta National Hospital as per specifications.
EACC had argued that the money paid to Mututho as reimbursement for goods he supplied to the hospital decades ago, amounted to unjust enrichment as he used forged documents.
“As to how the goods left the port, it is up to KRA to unlock the mystery and false issuance of double import entry declarations and subsequent payment receipts,” the Judge said.
EACC filed the case on behalf of KNH seeking to recover the money saying Mututho and his company, Countryside Supplies was paid irregularly after lodging a false tax reimbursement claim.
The company allegedly supplied KHN some 1,600 bedside lockers in 1999, in a Sh71.3 million tender sponsored by USAID.
In the deal, KNH was to apply for tax exemption upon submitting documents to KRA and in the event the hospital failed to apply for tax exemption, the company was to pay the duty and VAT for the clearance of goods and seek a reimbursement from KNH.
Mututho said he supplied the items and thereafter sought reimbursement of the import duty amounting to Sh41.3 million.
He said he tabled import declaration and clearance documents plus KRA invoice and payment receipts but EACC said the documents were forgeries.
Mututho was arrested and charged in 2005 with nine counts of uttering false documents but was acquitted for lack of evidence.
EACC filed a civil case saying the receipts from KRA were forgeries after they were disowned by the taxman.
