NAIROBI, Kenya, Aug 18 — The Ethics and Anti-Corruption Commission (EACC) has arrested senior National Treasury officials and business owners over an alleged Sh1.57 billion fraud scheme involving funds meant to help small-scale farmers access affordable financing.

📻 Breaking It Down

The anti-graft agency said nine suspects were arrested on Tuesday following investigations into the alleged fraudulent disbursement of Sh1,569,582,338.20 under the Rural Outreach of Financial Innovations and Technologies (PROFIT) Programme, implemented by the National Treasury with funding from the International Fund for Agricultural Development (IFAD).

EACC said the money was allegedly diverted to private entities for goods and services that were never supplied or rendered.

“EACC investigations established that KES 1.569 billion was fraudulently disbursed from the National Treasury Development Account to the PROFIT Programme and subsequently channeled to 23 private entities, 15 business names and eight companies, for goods and services that were never supplied or rendered,” the commission said.

📌 What You Need to Know

The PROFIT Programme was implemented between the 2013/2014 and 2023/2024 financial years and was intended to expand access to affordable financing for small-scale farmers.

According to EACC, investigators uncovered an elaborate scheme in which programme officials allegedly used false and forged documents to account for the money.

The commission said an unauthorized bank account was also opened in the name of the PROFIT Programme at KCB, through which Sh175 million was received and allegedly laundered and embezzled.

“Investigators also established financial links between programme officials and some of the private entities that received the funds, in apparent contravention of public financial management and accountability requirements,” EACC said.

The agency said a substantial portion of the Sh175 million moved through the unauthorized account was withdrawn in cash.

The arrests followed the conclusion of investigations and the forwarding of the inquiry file to the Director of Public Prosecutions (DPP), who approved prosecution of 20 public officials, companies and company directors.

📰 Source: Capital FM Kenya