This archive report was first published on 25 June 2020.
Published on June 25, 2020, a court has fined Sirisia MP John Waluke and businesswoman Grace Wakhungu Sh558 million each or serve seven years in prison over the Sh313 million maize scandal at the National Cereals and Produce Board (NCPB).
The court, presided over by Magistrate Elizabeth Juma, ordered that the conviction for Waluke be served to the Speaker of the National Assembly and the Public Service Commission (PSC).
Waluke and Wakhungu were found guilty of defrauding NCPB in the KSh 313 million maize scandal in 2009. They were directors of Erad Supplies and General Contracts Limited, which won a tender to supply 40,000 metric tonnes of maize to NCPB.
However, the board later cancelled the award of the tender for lack of funds, leading to a legal tussle between the two and NCPB. The MP and his business associate sued the produce board for breach of contract.
They presented a false invoice for KSh 115 million to support a claim for storage of white maize incurred by Chelsea Freight, a South African firm. They obtained KSh 13 million and KSh 2.4 million from NCPB on grounds of offering storage services through Chelsea Freight.
The court heard that the two committed the offense on separate dates between 2009 and 2013. They were jointly found guilty of fraudulently acquiring a further KSh 297 million, purporting to be loss of profits and interest incurred by the freight company.
