Nairobi County staff Stephen Mwina Mutua, Chief finance officer, his Deputy Johnson Akongo Abwori and David Kimburi Wambugu being investigated over conspiracy to defraud Nairobi County millions.
Milimani court has frozen bank accounts belonging to four companies accused of conspiring to defraud Nairobi City Hall of Sh83 million.
Milimani Duty Magistrate Peter Ooko allowed a police application seeking to freeze the accounts pending completion of investigations into the alleged fraud.
The affected companies are Waylin General Merchants, Fidelity Telecom Services, Rayfa Construction Services, and Mully Office Equipment.
According to an application filed by the police, the funds were allegedly stolen from Nairobi City Hall accounts on February 25, 2019. Investigators are probing claims of conspiracy to defraud and theft and requested the court to preserve the funds by freezing the companies’ accounts.
The court further authorized investigators to obtain bank statements and account-opening documents for the four firms covering the period between October 1, 2018, and February 25, 2019, to aid the ongoing probe.
Meanwhile, in a related matter, the same court declined a prosecution request to detain three senior Nairobi City Hall officials over a separate alleged theft of Sh7.3 million.
Principal Magistrate Ooko instead released Stephen Mwina Mutua, the Chief Finance Officer, his deputy Johnson Akongo Abwori, and David Kimburi Wambugu, an accountant, on cash bail of Sh200,000 each, pending completion of investigations.
Police had sought to detain the three officials for five days to allow investigators more time to conclude the probe. However, the court ruled that the prosecution had failed to provide sufficient grounds to justify the request for custodial detention.
The magistrate nevertheless directed the three suspects to report daily to the Directorate of Criminal Investigations (DCI) headquarters at City Hall as investigations continue.
Investigating officer Corporal Wilson Mwita told the court that the probe centers on allegations of conspiracy to defraud. The suspects were arrested on February 25, 2019, and initially held at Central Police Station.
Police suspect that the three officials conspired with directors of M/s Nunguni General Suppliers to defraud the Nairobi City Government of Sh7,396,552.
The prosecution informed the court that investigations are ongoing and that charges may be preferred against the suspects depending on the outcome of the probe.
