EACC Drops Ksh1.9B Corruption Case Against Ex-Governor Obado and Kin After Ksh235M Settlement
Following an out-of-court deal, the Ethics and Anti-Corruption Commission (EACC) has been given permission by the High Court to drop its Ksh1.9 billion asset recovery lawsuit against former Migori Governor Okoth Obado, his children, firms, and a businessman.
The parties involved came to a Ksh235 million settlement, according to court filings.
Using phony procurement contracts, the EACC had first attempted to recoup about Ksh1.9 billion that it claimed Obado and over 20 other individuals had stolen from the Migori County government.
The case’s judge, Justice Esther Maina, had earlier turned down a motion to dismiss the lawsuit, citing the unique character of each case and the requested relief.
In one lawsuit, it was claimed that Obado and his kids had obtained Ksh15.9 million worth of vehicles and a property in Loresho through dishonest means. The other party attempted to retrieve the large amount of Ksh1.9 billion.
Citing worries about unjust enrichment, the petitioner, who was involved in both cases, argued against the possibility of a double recovery by the EACC.
The examination conducted by the EACC concentrated on contracts that Migori County granted to businesses associated with the petitioner from 2013 to 2017.
A house in Loresho is said to have been purchased for Ksh34.5 million; money from the transaction is allegedly now in the accounts of Obado’s children, who are studying overseas. The inquiry also turned up evidence that Obado’s son used the money to buy two Landcruisers.
![](https://www.kenyans.co.ke/files/styles/article_inner/public/images/media/twitter%20app.jpg?itok=j6XUn-Eu)
PHOTO
OKOTH OBADO
Crucial evidence was provided by authorities in Scotland, the UK, and Australia who facilitated mutual legal aid through the Attorney General’s office. Transactions involving businesses that traded with Migori County and sent money to Obado’s children abroad were discovered during the investigation.
The legal wrangling took place in the midst of ongoing criminal proceedings in which Obado and five of his children were accused of money laundering and conspiring to commit economic crimes.
EACC used strong evidence obtained through international cooperation to support its forfeiture complaint by demonstrating financial movements to offshore accounts.
Mutual legal assistance documents revealed electronic money transfers to Scotland, England, Australia, and other countries, supporting the Commission’s efforts to locate assets abroad.
The conclusion of Obado’s separate murder trial, which is presently pending a verdict, corresponds with the resolution of this asset recovery action.
![](https://www.kenyans.co.ke/files/styles/article_inner/public/images/media/20200220-BOXRAFT-Migori%2BGovernor%2BOkoth%2BObado%2Bat%2BKenya%2BSchool%2Bof%2BGovernment%2B%28KSG%29%2C%2BLower%2BKabete%2Bin%2BKiambu%2BDuring%2Ba%2BConsultative%2BDevolution%2Bmeeting.%2BThursday%2C%2BFebruary%2B20%2C%2B2020.%2B%285%29.jpg?itok=6lixHXgn)
In Other News:
EACC Drops Ksh1.9B Corruption Case Against Ex-Governor Obado and Kin After Ksh235M Settlement