The Court of Appeal has confirmed a fine of Sh1.18 billion against a Nairobi entrepreneur who was found guilty of defrauding the Youth Enter...
The Court of Appeal has confirmed a fine of Sh1.18 billion against a Nairobi entrepreneur who was found guilty of defrauding the Youth Enterprise Development Fund (YEDF) of Sh180 million through fake contracts in 2015. The court rejected an appeal by businessman Mukuria Ngamau and his company, Quorandum Limited, thereby upholding his conviction and sentencing him to pay a fine of Sh1.18 billion along with compensation of Sh189 million to YEDF. This makes the total amount he must pay Sh1.3 billion. If he fails to meet this obligation, Ngamau will face seven years in prison for illegally obtaining public funds and falsifying business documents. This decision concludes a legal dispute that lasted almost a decade and revealed a scheme involving fabricated contracts and illegal payments. However, the parties may take the case to the Supreme Court if any constitutional issues require interpretation. The case originated from a 2016 prosecution where Ngamau and five others were charged with conspiracy to commit economic crimes, unlawful acquisition of public property, and forgery. They were accused of orchestrating fraudulent payments totaling Sh180 million from YEDF’s bank account between 2014 and 2015 using fictitious consultancy contracts. Initially, six individuals were charged, but two — including former YEDF Acting CEO Catherine Namuye and chairperson Bruce Odhiambo — passed away before the trial. Ngamau and Quorandum Limited remained accused of receiving Sh115.7 million and Sh64.6 million in separate transactions (totaling Sh180.3 million) under false contracts for ICT consultancy services on "ICT Strategy Design" and "Design of Specifications for an Enterprise Resource Planning (ERP)".Read: As Youth Fund case ends, deaths of some parties remain a puzzle The prosecution presented 32 witnesses, including YEDF officials and forensic experts, who testified that the contracts used to justify the payments were fake and that no services were provided to the State entity. Joseph Alumasa, the ICT manager at YEDF, compared the disputed contracts with legitimate ones and found significant differences. Miriam Boit, the then-acting company secretary, denied the documents, stating they had never been created by the Fund. This was confirmed by Emmanuel Japheth Odero, the Manager Internal Audit and Valuation at the Fund. A forensic document examiner, Jacob Oduor, matched Ngamau's signature to the forged contracts, while internal auditors traced the illicit payments to Quorandum Limited’s accounts. Other witnesses, including the Fund's Head of Finance and bank officials, testified about how the money was transferred and that Ngamau personally pursued the payments, visiting Chase Bank to inquire about the funds. They described him as “literally chasing money in the bank” before the payments were processed. In September 2021, the magistrate’s court convicted Ngamau and his company on all counts, imposing a seven-year jail term for conspiracy and unlawful acquisition of public funds, a Sh1.18 billion fine, and an order to compensate YEDF Sh189.3 million. A breakdown of the fines shows he was sentenced to pay a mandatory fine of Sh925.6 million for the two offences of unlawful acquisition of Sh180.3 million public funds or serve seven years imprisonment. For the benefit received, the court imposed an additional mandatory fine of Sh258.6 million or a seven-year jail term. He was also ordered to repay YEDF Sh189.3 million for the loss suffered, bringing the total to Sh1.37 billion.Read: Court upholds Sh900 million fine for businessman that 'chewed' Youth Fund cash For forgery of contracts, he was sentenced to serve three years' imprisonment. Ngamau appealed to the High Court, where, upon evaluating the record and the arguments, the court, in February 2023, acquitted him of conspiracy but upheld the remaining convictions. Dissatisfied, he took the case to the Court of Appeal, arguing that his constitutional rights were violated, the charges were defective, and the prosecution relied on insufficient evidence. He also claimed the courts improperly referenced the deceased co-accused in their rulings. However, a three-judge bench dismissed the appeal, stating that the evidence against Ngamau was overwhelming. Read: Five mystery deaths in Mukuria Ngamau Youth Fund graft case The judges ruled that his conviction was based on direct and corroborated evidence independent of the evidence against the deceased accused persons. "The circumstances form a chain so complete that there is no escape from the conclusion that the appellant committed the crimes," the judges ruled, adding that the conviction "was in regard to his own actions and not the actions of others." "The argument that improper reliance was placed on evidence concerning deceased persons to convict him or that unnecessary weight was placed on the evidence concerning the deceased accused to hold that he played a part in the offences lacks merit and must fail." The judges ruled that the charges were clear and the evidence was overwhelming. They noted that Ngamau failed to prove he rendered any services justifying the payments. Although the prosecution had conceded that key elements of the offences related to forgery were not proven beyond doubt, the Court of Appeal disagreed with the State counsel. "The courts below properly found that documents submitted were falsified to facilitate the payment, and they relied on evidence from bank officials, the Fund, and a forensic expert," said the judges. The prosecutor had argued that without a witness who saw Ngamau put pen to paper, the presumption that he was the maker of the document did not arise. Follow our WhatsApp channel for breaking news updates and more stories like this.jwangui@ke.nationmedia.com
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