A Magistrate’s Court has temporarily halted the prosecution of Benson Ndeta, the Chairman of Savannah Clinker, in a case where he is accused of conspiring to defraud ABSA Bank of Sh4.5 billion. This decision comes after Ndeta, through his lawyer Cecil Miller, obtained an order from the High Court on Friday that stopped the criminal proceedings.
Ndeta was initially charged with a series of serious offenses before Milimani Magistrate Gilbert Shikwe. The charges included conspiracy to commit a felony, uttering false documents, making a document without authority, and obtaining credit by false pretenses. However, Ndeta vehemently denied the charges and was held at Muthaiga Police Station over the weekend as he awaited a ruling on his bail application.
On Friday, Ndeta’s legal team secured a crucial court order from Justice Bahati Mwamuye at the High Court, which temporarily halted the ongoing prosecution. The High Court judge further instructed that Ndeta be released immediately if he was already in police custody. This order was made shortly after Ndeta was charged, and it has had significant implications for the case’s progress.
The case, which had been set to resume on Monday, has now been delayed. Magistrate Shikwe, after being appraised of the High Court’s ruling, decided to adjourn the matter and scheduled a mention for January 30, pending the High Court’s final determination. This postponement reflects the growing complexity of the case, which involves high-profile figures, significant sums of money, and a range of legal procedures.
The fraud case centers on allegations that Ndeta, alongside other individuals, conspired to defraud ABSA Bank of a massive amount of Sh4.5 billion. According to the prosecution, the accused individuals submitted fraudulent documents to obtain credit from the bank. They are also accused of making false representations to facilitate this financial crime.
In a dramatic twist, the prosecution opposed Ndeta’s bail application, presenting an affidavit from the Investigating Officer in the case. The affidavit painted a picture of a high-risk defendant, suggesting that Ndeta could potentially flee the country, tamper with evidence, or influence witnesses if granted bail. The prosecution argued that Ndeta’s position as the chairman of Savannah Clinker made him a “person of interest,” with the potential to interfere with ongoing investigations. Additionally, the prosecution highlighted that the funds in question have not been recovered, with suspicions that they might have been transferred to offshore accounts, a critical detail they seek to explore.
The defense, however, contended that the charges against Ndeta were baseless and that there was no credible evidence to support the accusations. They argued that the High Court’s decision to halt the prosecution was a sign of the merits of their case and that Ndeta should not be subjected to further detention without solid grounds.
The outcome of the case will have significant implications not only for Ndeta but also for the broader business community in Kenya, where corporate governance and financial accountability are under increasing scrutiny. The allegations against Ndeta, if proven true, would mark one of the largest fraud cases in the country’s history.
As the legal battle unfolds, all eyes will be on the High Court’s final decision, which could determine the future of Ndeta’s prosecution and the fate of the alleged Sh4.5 billion fraud case. For now, the delay has provided Ndeta with a temporary reprieve, but the complex legal and financial questions surrounding the case remain unresolved. The mention on January 30 will be crucial in deciding the next steps in this high-stakes legal drama.
