Court freezes bank account for firm over irregular payment
The High Court has frozen a bank account belonging to a construction company that won a tender to build new offices for MCAs in Homa Bay County.
This is after an ongoing investigation by the Ethics and Anti-Corruption Commission (EACC) found out that the company- Hartland Enterprises Limited, was paid for services it did not offer.
EACC had filed a suit at the High Court to recover over Sh36 million embezzled by officials of the Homa Bay County Assembly in collusion with a private contractor- Mr James Oyuhah, the director of the said construction firm.
The High Court on Monday issued orders sought by the investigative agency freezing Sh13 million held by Mr Oyukah at Cooperative Bank of Kenya.
His company got into an agreement with the county gvernment for the construction of new offices for ward representatives but never completed the work.
The firm was paid for services not rendered and EACC sought to recover the money.
A letter from the commission to the County Assembly Clerk Faith Apuko, EACC established that on July 10, 2019 the said company was awarded a tender to construct new offices at a cost of Sh348 million.
The project was to be concluded in 78 weeks commencing August 12, 2019 and ending on January 8 2021.
Investigation established that Hartland Enterprises received payment in two trenches.
The first payment of Sh35.177 million was made on June 25, 2020 and the second payment of Sh31.597 made on June 30, 2021 bringing the total paid to the contractor to Sh 66.774 million.
Evaluation of project
However, assessment and evaluation of the project revealed that the money paid to the company does not commensurate with the work done. The project had also stalled.
"The commission has established culpability on your part being the clerk of the Homa Bay County Assembly and the accounting officer for the following: failing to ensure proper management and control as well as accounting for the finances of the assembly contrary to Section 196 of the Public Finance Management Act," read part of the letter to the clerk.
Justice Daniel Ogembo granted orders sought by EACC to freeze Sh13.511 million belonging to Hertland Enterprises Limited.
The freezing will remain in force until the case is heard and determined. Besides freezing the company's account, EACC seeks to recover the full amount from county assembly and national government officials who facilitated the irregular payments.
The officials are former clerk at the county assembly Daniel Kaudo, the director at Hartland Mary Oduor, Ms Apuko and Patrick Tonui- a project quality surveyor at the Ministry of Transport and Public works.
The case will be mentioned on September 27,2022 for further directions. BY DAILY NATION

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