EACC now cleared to surcharge corrupt public office holders

The Ethics and Anti-Corruption Commission (EACC)  has been given the authority to hold public officials individually responsible and to surcharge them for any loss of public funds resulting from their illegal or irregular actions.

This landmark decision was handed down on February 9 by Justice Esther Maina of the High Court, affirming the power of the EACC to demand compensation from public officers whose illegal actions result in loss or damage to public property.

The decision was reached in a case filed in the High Court by the Chief Executive Officer of the Higher Education Loans Board (HELB), Charles Ringera. He was challenging the decision of the EACC to hold him personally responsible for a loss of KES 491,852.20 arising from his actions that the EACC found to have been outside the law.

The EACC had issued a demand notice to surcharge him and ordered him to compensate HELB by paying the amount. The EACC ordered the payment after investigating allegations of abuse of office against the HELB CEO.

The CEO had allegedly directed the HELB Chief Finance Officer and the Finance Manager to effect irregular salary increments to Mr. Geoffrey Monari, the Chief Operations Officer, without the approval of the HELB Board.

The decision was based on the constitutional and statutory powers of the EACC to protect public property, which was deemed to extend to securing compensation for the loss of public property from culpable public officers.

The EACC had conducted its investigation and sought expert advice from the Public Service Commission and the Salaries and Remunerations Commission, which found that the Ringera had irregularly approved the review of the basic salary of the then Chief Operations Officer, Geoffrey Monari, and had directed the CFO to effect the same in contravention of public service regulations.

The incremental credits awarded by Ringera to Monari were in violation of Article 226(5) of the Constitution which state, “If the holder of a public office, including a political office, directs or approves the use of public funds contrary to law or instructions, the person is liable for any loss arising from that use and shall make good the loss, whether the person remains the holder of the office or not.”

 

 

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