This archive report was first published on 13 November 2019.
On November 13, 2019, Sirisia MP John Waluke defended the Sh200 million paid to his company by the National Cereals and Produce Board ten years ago, saying the payout was lawful.
Waluke, a director of Erad Supplies and General Contractors Ltd, claimed the payment was made pursuant to a court directive after an arbitrator ruled in favor of the company.
He stated that the company received the payment in 2009 following a court order, and that the funds were distributed among the company's directors, with Waluke receiving Sh50 million, Jacob Juma Sh113 million, and Grace Wakhungu Sh40 million.
Waluke alleged that Juma, who has since died, took advantage of their absence in the day-to-day running of the company to pocket the largest share of the amount.
He also claimed that Juma's death could have been related to the case, as he 'rubbed shoulders with the big boys.'
The MP stated that the company sued NCPB over breach of contract after it failed to provide letters of credit for maize supplied from Ethiopia.
He further claimed that the company won a contract to supply 400,000 metric tons of maize but the state terminated the deal due to lack of funds.
During the 2004/2005 drought, the Ministry of Agriculture instructed NCPB to purchase 2 million bags of maize for famine relief and strategic grain reserve.
The prosecution accused Waluke and his co-director of uttering false documents and fraudulent acquisition of public funds.
They allegedly presented a false invoice of USD1,146,000 (Sh115,072,725) on February 24, 2009, as evidence in the arbitration dispute between the company and NCPB.
They allegedly obtained Sh297,386,505 on March 19, 2013, for loss of profit and interest allegedly incurred by Chelsea Freight.
However, Waluke claimed that the company was not paid Sh13,364,671 as alleged or the USD 24,032 but it was paid to an advocate, who should instead have been pursued by the prosecution.
Chief Magistrate Elizabeth Juma placed the two on their defense after ruling that the prosecution had tabled evidence to warrant them to defend themselves.
The hearing continues on Thursday.
