All ‘dirty’ money that is forfeited to the state will from now on be deposited directly to the National Treasury and not Asset Recovery.
In a judgement delivered on Friday last week, Justice Nixon Sifuna said this was in a bid to curb further corruption and safeguard the money.
In the case, the Asset Recovery had moved to court seeking to forfeit USD 28,000 recovered from a Nigerian national who is serving time for money laundering.
Justice Sifuna allowed the application for forfeiture but said the money which was being held by Asset Recovery should be deposited to the National treasury.
“The USD 28,000 shall within 30 days from today be transferred from Asset Recovery to the National Treasury,” the court ordered.
He further ordered the PS Treasury to within 7 days from the date the funds are received file an affidavit confirming receipt of the said money to the consolidated fund.
He has also ordered CS National Treasury Prof Njuguna Ndung’u to place before parliament for approval the regulations for operationalisation the criminal recovery fund within 6 months and file a report to court on the progress.
“In the meantime, before operationalization of the criminal recovery fund all monies that courts order to be forfeited to the government shall be paid into national treasury,” the court ordered.
Thereafter, the Asset recovery shall within 90 days transfer to the criminal recovery fund all preserved and forfeited assets and property to the said fund.
Further, the Assets Recovery Agency shall within 45 days from the date of this judgement submit to the Auditor general a report detailing the list and particulars of all monies assets and property it is holding under preservation orders and forfeiture orders.
“I am of the view that rather than this money being transferred to the Asset Recovery Agency it can be transferred direct to the consolidated fund through the National treasury so that it can be available for the common benefits of all Kenyans,” the judge ruled.
He said that section 109 of the POCAMLA establishes a government fund where all monies forfeited to the state should be deposited but to date it’s not operational and is not in existence.
Justice Sifuna said in order to protect public resources and public funds which are forfeited to the state then the money has to be deposited in the consolidated fund.
He said this is due to the need to put in place safeguards and safety valves to ensure the forfeited money is kept out of reach of further corruption by agents of government agencies
“Since all such previous forfeitures are untraceable to the consolidated Fund, they are like the proverbial low-lying fruits susceptible to larceny by those with an affinity and appetite for theft of public funds,” he said.
He wondered what happens to the accrued interest earned on the forfeited money that is banked in the Asset Recovery personal accounts.
