The High Court has ruled that former Naivasha MP John Mututho made Ksh 41 million legally from Kenyatta National Hospital from a contract to supply bedside drawers.
Justice John Onyiego dismissed a suit from Ethics and Anti-Corruption Commission alleging that the MP made the cash illegally in 1999 after landing a tender to deliver 1600 bedside lockers for the hospital.
Through his company Country Side Supplies, Mututho won the KNH tender to supply the lockers at a cost of Sh71 million before taxes.
“The sum being sought for recovery was paid through a validly executed contract after obtaining requisite clearance and approval, ” ruled Onyiego.
“Since goods were delivered and payment made by the hospital, there cannot be a claim of unjust enrichment to justify a refund to the government.”
The amount excluded the Sh41 million tax which according to the agreement was to be paid by the hospital.
The hospital, however, failed to pay the taxes promoting the MP to demand an extra Ksh 41 million which he claims he paid to get the goods cleared at the port.
The anti-graft commission filed the suit to recover the Sh41 million from Mututho, arguing that he fraudulently acquired the amount using forged tax documents from KRA.
Justice Onyiego ruled that there was a contract between the two parties and that therefore the goods were delivered as per the tender which proved EACC’s claims of fraud was not justified.
He further said that KNH breached the contract therefore whatever followed was justified.
“I am satisfied that the defendant (Mututho) made payments for clearance of lockers and produced payment receipts. There is no way goods imported could fail to attract duty before being released at the port of entry. He was justified to seek for a refund for the tax expenses,” ruled Onyiego.
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