MP John Waluke and business associate Grace Sarapy Wakhungu allegedly fabricated evidence to secure a Sh314 million payout from the National Cereals and Produce Board (NCPB) in a 2004 maize procurement scandal, according to court documents.
The dispute originated from a 2004 maize shortage that prompted NCPB to tender for 180,000 tonnes of white maize. Erad Supplies & General Contractors Ltd, led by Waluke and Wakhungu, won a contract to supply 40,000 tonnes but failed to deliver, sparking a legal battle.
An arbitration panel ruled in favor of Erad in 2009, awarding $3.1 million—including $1.96 million in lost profits and $1.146 million in storage costs—after the company claimed it stored maize in a South African warehouse. NCPB later alleged the documents supporting this claim were forged.
EACC investigations, aided by South African authorities through mutual legal assistance, uncovered that Erad’s tender process was fraudulent. Documents purporting to show storage at M/S Chelsea Freight in South Africa were revealed as forgeries, including an invoice for $1.146 million that did not originate from the stated supplier.
EACC seeks criminal charges against Waluke and Wakhungu for corruption, arguing the arbitration process did not address the fraud. Erad’s lawyers counter that the evidence was already rejected in previous court rulings. A hearing is scheduled for March 11.
NCPB’s legal representative, Patrick Lutta, stated the firm would present evidence of the alleged fraud during the trial, while Erad’s counsel, Nelson Havi, maintains the case lacks merit.
