Former KMC CEO Ordered to Repay Sh11.5M in Embezzlement Case

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Nyakundi Report

Newsroom 1 min read

The High Court has mandated former Kenya Meat Commission (KMC) Chief Executive Officer Ibrahim Haji Issak to repay Sh11.5 million stolen from the state-owned corporation, ruling that he failed to justify the funds' use. The Ethics and Anti-Corruption Commission (EACC) secured the order after proving Issak withdrew the money from First Community Bank in Nairobi for personal gain.

Justice John Onyiego stated the court found no satisfactory explanation for the unaccounted expenditure, noting the funds were withdrawn under the guise of a "cheque forgotten" transaction that triggered an overdraft. The judge also ordered Issak to pay interest at court rates from April 2012 until full repayment, along with legal costs incurred by the EACC.

The case originated from an internal audit conducted in 2016, which revealed Sh11.5 million was siphoned from KMC's First Community Bank account between December 2012 and January 2013. The audit also flagged a separate Sh15.6 million discrepancy, including Sh3 million withdrawn without documentation from the Kenya Commercial Bank.

EACC officials alleged the funds were misappropriated for private purposes, with a bank credit manager testifying that Issak presented a 2012 letter requesting the withdrawal. The court's judgment emphasized the breach of public duty and fraudulent nature of the act, reinforcing accountability for public officials entrusted with state resources.

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