Ruaraka Land Saga: Matiang’i, Swazuri, 20 Others Ordered by EACC to Refund Ksh 2.7 Billion Public Funds

The Ethics and Anti-Corruption Commission (EACC) has begun an investigation to recover Ksh.2.7 billion paid in the infamous Ruaraka land compensation deal, listing 22 persons and three companies as responsible for the money and interest.

The demand letter names some of the senior and former government officials including Jubilee deputy leader Fred Matiang’i, Immigration Principal Secretary Belio Kipsang, former National Land Commission (NLC) Chairman Muhammad Swazuri, former NLC commissioners, among others. Other companies linked to the late businessman Francis Mburu’s family have also been part of the recovery process.

The EACC action comes on the heels of a Court of Appeal ruling which ruled that the Ksh.1.5 billion paid by the NLC to acquire a 13-acre piece of land in Ruaraka was illegal.

The anti-graft agency said the money was paid as compensation to Afrison Export Import Limited and Huelands Limited, who are the owners of the property. But EACC claims it was an abuse of office, embezzlement and money laundering, and that the money should have been awarded as compensation for private land.

The commission has asked for the money to be returned in full, plus 12 per cent interest per annum since it was disbursed in 2018, from the individuals and companies collectively and individually.

Those targeted have been given seven days to make the payment. Failure to do so in the designated time will lead to EACC initiating formal recovery proceedings without another notification, it has warned.

In accordance with the mandate in the Act, the Commission demands restitution from you both collectively and individually, of Ksh. 1.5 billion, plus interest at the rate of 12 per cent per annum from the date the money was disbursed to you.

The agency also said it would seek repayment in court if the funds were not received in seven days, and would have other legal ramifications for the affected parties if they were to be found liable for the costs of legal action.

Huelands brings appeal against Court of Appeal ruling

EACC is pursuing its recovery process while Huelands Limited has taken the matter to the Supreme Court to challenge the Court of Appeal order which pave the way for the action by the court.

Huelands has appealed to the appellate court on 11 grounds. The three-judge Court of Appeal bench did not differentiate between lawful planning restrictions and compulsory acquisition of private property, according to the company.

Huelands also argues that the judgment did not provide for sufficient protection of constitutional rights to property and security of title.

The company insists that there were no public funds lost in the Ruaraka deal. It is rather demanding that it be issued an order for the NLC to pay it Ksh.1.7 billion, it says, which is yet to be paid from a Ksh.3.2 billion compensation that had been approved for the property.

The argument has thus moved to the Supreme Court where Huelands wants the Court of Appeal’s decision overturned.

However, EACC has objected to the Supreme Court appeal, saying it is an abuse of the judicial process.

The new development brings the saga of Ruaraka land to a new chapter, and has sparked concern about the public money used to compensate private land and the responsibility of officials involved in the deal. If the recovery demand is successful, it is possible for the government to claim billions of shillings from these individuals and companies named in the case, once interest is added on from the disbursement in 2018.