High Court Approves Withdrawal of Ksh1.9 Billion Case Against Former Migori Governor Obado
The High Court has given its consent for the Ethics and Anti-Corruption Commission (EACC) to drop a Ksh1.9 billion asset recovery lawsuit against former Migori Governor Okoth Obado, his children, companies, and an associate. This decision follows an out-of-court settlement agreement.
Court records reveal that the involved parties reached a settlement amount totaling Ksh235 million.
Initially, the EACC aimed to reclaim over Ksh1.9 billion allegedly misappropriated by Obado and over 20 others from Migori County through fictitious procurement contracts.
Justice Esther Maina, overseeing the case, had previously rejected a motion to dismiss the lawsuit, highlighting the distinct nature of each legal claim and the relief sought.
One lawsuit targeted assets such as a residence in Loresho and vehicles worth Ksh15.9 million, purportedly acquired through corrupt means by Obado and his children. Another sought the recovery of the substantial Ksh1.9 billion sum.
The petitioner, implicated in both cases, raised concerns about potential double recovery by the EACC, citing worries over unjust enrichment.
The EACC’s investigation focused on contracts awarded to companies connected to the petitioner by Migori County between 2013 and 2017.
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Reportedly, Ksh34.5 million was used to buy a house in Loresho, with funds later transferred to the accounts of Obado’s children, who were studying abroad. The inquiry also disclosed that Obado’s son purchased two Landcruisers with these funds.
Assistance from authorities in Scotland, the UK, and Australia, facilitated by the Attorney General’s office, yielded crucial evidence. The investigation uncovered transactions where companies trading with Migori County directed funds to Obado’s children overseas.
This legal development occurred amidst ongoing criminal proceedings where Obado and five of his children faced charges related to conspiracy to commit economic crimes and money laundering.
The EACC defended its forfeiture lawsuit by citing compelling evidence gathered through international collaboration, which supported the flow of funds to offshore accounts.
Documents acquired through mutual legal assistance indicated electronic transfers of funds to Australia, Scotland, and England, reinforcing the Commission’s pursuit of assets beyond national borders.
The resolution of this asset recovery case coincides with the conclusion of a separate murder trial against Obado, which is currently awaiting a verdict.
High Court Approves Withdrawal of Ksh1.9 Billion Case Against Former Migori Governor Obado
