{UAH} Fraud: MP Sentenced To 7 Years In Jail Or Pay UGX20.8 Billion Fine

Sirisia Member of Parliament (MP) John Koyi Waluke has been sentenced to seven years in prison or pay a fine of Ksh.594 million (UGX20.8 billion) for defrauding the National Cereals and Produce Board (NCPB) Ksh.313 million.

The MP was charged alongside Grace Sarapay Wakhungu, who also handed the same sentence, and Erad Supplies & General Contracts Limited (Erad); a company where the two are shareholders.

Waluke and Wakhungu, through the company, were supposed to supply 40,000 metric tonnes of maize to NCPB in 2004 but ended up pocketing Ksh.313 million without supplying even a single grain of maize.

The tender was however cancelled after Erad Supplies, a company in which the late businessman Jacob Juma was also a director, failed to prove it had sufficient funds to supply the maize.

The company later moved to court and sued NCPB claiming that by the time the tender was being cancelled, it already had the maize procured from Ethiopia and that it was being stored by Chelsea Freight, a South African firm, in Djibouti.

They claimed that the maize was stored by the South African firm in Djibouti for a period of 123 days for which they were charged USD 1,146,000.00 and that they anticipated profit amounting to USD 1,960,000.

In total the accused demanded compensation of USD 3,106,000.00 as loss of profit and storage charges. Through what is believed to be a fraudulent legal process, the arbitrator awarded Erad USD 3,106,000.00.

NCPB's efforts to oppose the adoption of the award were unsuccessful and Erad swiftly moved to execute the orders.

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Allaah gives the best to those who leave the choice to Him."And if Allah touches you with harm, none can remove it but He, and if He touches you with good, then He is Able to do all things." (6:17)

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