KENYA : Savanna Cement Limited Millionaire Director Benson Sande Ndeta will spend the weekend in police cells after being charged with Ksh 700 million bank fraud.
Through his Lawyer, Mr Ndeta who was today arraigned before Magistrate Gilbert Shikwe at Milimani Law courts, Nairobi, alleged that he is a victim of business competition after successfully bidding for the takeover of Bamburi Cement Company.
“Mr Ndeta is a victim of business completion after successfully bided for the purchase of Bamburi cement company “ Said Lawyer Cecil Miller in defending his client.
Mr Miller urged milimani senior principal magistrate Gilbert Shikwe to release is client on a lenient cash bail.
He told the court that the amount of USD 35 million on the charge sheet is a loan his client secured from a bank to pump into his vast business emperor.
Mr Miller told the court that Mr Ndeta is the first person in history to be charged with a criminal offense for obtaining a commercial.
“It is astonishing that an industrialist can be charged for securing a loan from a lender to create employment and increase the GDP of thr country.” Mr Miller submitted.
Saying that the accused is not a flight risk as claimed by prosecuting counsel judy koech Mr Miller appearing with Edgar Busiega said the accused is a Kenyan who has a family and school going child with huge investment in the country and can not abscond.
Mr Ndenda how is jointly charged with Charles Hills JR has denied nine counts of forgery and fraud.
Ndeta is accused of obtaining credit of USD 35 million form Absa Bank Kenya PLC purporting he was acting on behalf of savanna cement limited .
Magistrate Gilbert Shikwe ordered the accused be remanded at Muthaiga police station until Monday when he will rule on the application opposing release of the accused person on bond.
Elsewhere, Henry Mwasaru, the Head of Human Resource and Administration at the Kenya Maritime Authority (KMA), was arrested on Tuesday over his alleged involvement in a fraudulent tender process for a medical insurance cover amounting to KES 40,539,760.
The arrest, executed by the Ethics and Anti-Corruption Commission (EACC), highlights the ongoing battle against corruption in Kenya’s public sector.
Mwasaru, who also serves as the Assistant Director in charge of Human Resource Management at KMA, is accused of conspiring with Ms. Bevaline Lundu, the Head of Supply Chain Management at KMA, to unlawfully award the medical insurance tender to an insurance agency.
The scheme is believed to have circumvented established procurement laws, allowing KMA officials to systematically exploit public resources for personal gain.
The operation that led to Mwasaru’s arrest also targeted two insurance brokers allegedly involved in the fraudulent activities. This coordinated effort underscores the EACC’s commitment to tackling corruption, particularly in the procurement processes within public institutions, where officials often engage in bid-rigging and the exchange of kickbacks.
The investigation into KMA’s procurement of staff medical insurance was initiated following a complaint received on September 30, 2024, which detailed irregularities in the tendering process.
Authorities believe that KMA officials manipulated the procurement system to ensure that the medical insurance tender was awarded to specific providers in exchange for undisclosed benefits.
As part of the operation, the EACC seized valuable evidence that will bolster their ongoing investigation, signaling a proactive approach to rooting out malfeasance within public institutions.
The medical insurance sector has become an increasingly scrutinized area for corruption, with the EACC claiming that some officials exploit this domain as a conduit for embezzling public funds.
The Commission has intensified its focus on the procurement of staff medical insurance across various public entities, recognizing the profound impact that corrupt practices can have on service delivery and public trust.
