Kenya's DPP Approves Prosecution of Treasury Officials Over Sh1.57bn PROFIT Programme Fraud

• The Director of Public Prosecutions has approved the prosecution of nine suspects over alleged misappropriation of Sh1.57 billion under the Programme for Rural Outreach of Financial Innovation and Technologies (PROFIT).
• The suspects include three National Treasury officials and six business owners and company directors, who will face charges including abuse of office and money laundering.
• The Ethics and Anti-Corruption Commission (EACC) has indicated that it will pursue recovery and forfeiture proceedings to recover public funds and assets allegedly acquired through unlawful conduct.

The DPP said its decision was guided by its mandate to uphold the rule of law and ensure accountability where public funds are misused.

The Programme for Rural Outreach of Financial Innovation and Technologies (PROFIT) programme, designed to expand access to affordable financing for small-scale farmers, has been marred by allegations of misappropriation of funds. An investigation by the Ethics and Anti-Corruption Commission (EACC) uncovered a scheme where Sh1.569 billion was allegedly disbursed from the National Treasury Development Account to private entities for goods and services that were never supplied or rendered. The EACC's inquiry file, submitted to the Director of Public Prosecutions (DPP), revealed that an unauthorised bank account was opened in the name of the PROFIT programme at Kenya Commercial Bank, through which Sh175 million was received. This money was allegedly laundered and embezzled, with a substantial portion withdrawn in cash. The EACC also established financial links between programme officials and some private entities that received the funds.

The DPP's decision to approve prosecution is guided by its mandate to uphold the rule of law and ensure accountability where public funds are misused. The suspects, including three National Treasury officials and six business owners and company directors, will face charges including abuse of office, unlawful acquisition of public property, uttering a false document, financial misconduct, acquisition of proceeds of crime, and money laundering. The prosecution decision follows the EACC's investigations into alleged misappropriation of funds under the PROFIT programme. The anti-corruption agency has indicated that its efforts will extend beyond criminal prosecution to the recovery of public funds and assets allegedly acquired through unlawful conduct.

The alleged irregularities in the implementation of the PROFIT programme have far-reaching implications for the government's efforts to support small-scale farmers. The programme, which operated between 2013/2014 and 2023/2024 financial years, was intended to improve access to affordable financial services for rural communities. However, the allegations of misappropriation of funds and abuse of office raise questions about the effectiveness of the programme and the accountability of those responsible. The recovery of public funds and assets allegedly acquired through unlawful conduct is a critical aspect of the EACC's efforts, as it seeks to ensure that those who have benefited from corrupt practices are held accountable.

Lawyers should watch for the potential recovery of public funds and assets allegedly acquired through unlawful conduct, as EACC has indicated that it will pursue recovery and forfeiture proceedings.

Source: Original reporting via The Star