The Assets Recovery Agency (ARA) has suffered a major legal setback after the High Court rejected its attempt to seize two high-value properties linked to an alleged Sh155 million loss at the Information and Communication Technology Authority (ICTA).
In a judgment delivered at the Milimani Law Courts, Justice Benjamin Musyoki ruled that ARA failed to meet the strict legal threshold required to prove that anyone acquired or developed the properties using proceeds of crime. The court dismissed the case and ordered the agency to pay costs to the respondents.
“The originating motion before this court lacks merit. I accordingly dismiss it with costs to the respondents,” Justice Musyoki ruled.
ARA had asked the court to forfeit L.R No. Ruiru East Block 1/5093, registered in the name of Antony Nyaga Mwangi, and L.R No. Kiambaa/Thimbigua/6503, registered under businessman Ernest Githinji Waweru. The agency also sought to seize all rental income generated from the two properties, arguing that someone developed them using public funds allegedly stolen from ICTA.
According to ARA, two former senior ICTA managers irregularly withdrew public funds between January and July 2017 through unsupported cash withdrawals and split transactions designed to bypass internal financial controls. In affidavits sworn by investigator Corporal Isaac Nakitare, the agency claimed that internal audits showed ICTA lost Sh155,838,193 under a coordinated scheme involving employees of the authority.
ARA further alleged that Wells Fargo security officers delivered large sums of cash to the former managers at ICTA offices and that someone later transferred the Kiambaa property to Githinji as part of a money-laundering arrangement.
However, the property owners strongly contested the allegations. Antony Nyaga Mwangi told the court that he bought the Ruiru property in 2014 and completed its development in 2016 using bank loans, business income and financial support from his spouse. He also explained that the money he received from ICTA in 2017 represented legitimate payments for project launches, inspections and work-related allowances.
Ernest Githinji Waweru, through his lawyer Emmanuel Awiti, denied acting as a conduit for laundering public funds. He told the court that he lawfully purchased the Kiambaa property from Mwangi under a valid sale agreement, paying the purchase price in instalments through bank transfers. He added that he financed the property’s development using income from his businesses and financial support from his wife.
In dismissing the case, Justice Musyoki said ARA failed to establish a direct link between the alleged theft of ICTA funds and the acquisition or development of the two properties.
“The evidence before me shows that the properties were acquired in 2014, while the alleged stolen funds came into the hands of the respondents between January and July 2017. No nexus has been demonstrated,” the judge concluded.
The ruling delivers a significant blow to ARA’s efforts to recover assets linked to the ICTA scandal, reinforcing the requirement that investigators must prove a clear financial trail between alleged crime proceeds and targeted property before courts can order forfeiture.
The post ARA Loses Big in Court as ICTA Sh155 Million Property Case Collapses appeared first on Nairobi Wire.
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