Imenti Central MP Gideon Mwiti acquitted of fraud charges

Imenti Central MP Gideon Mwiti Irea (in blue coat) has been acquitted of fraud charges October 4, 2013 relating to a collapsed pyramid scheme in which Kenyans lost Sh780m. PAUL WAWERU  

Imenti Central MP Gideon Mwiti Irea has been acquitted of fraud charges relating to a collapsed pyramid scheme in which Kenyans lost Sh780m.

A magistrate said the prosecution’s case failed to prove allegations against Mr Irea due to shoddy investigations.

On Friday, the court ruled that none of the monies were paid to Mr Irea neither did the documentary exhibits presented connect him to the offence.

The MP had been accused of inducing members to deposit money with the defunct Kenya Business Community Sacco, which the government shut down in the wake of a purge on illegal banking in 2009.

DECEIT AND TRICKERY

The prosecution had alleged that Mr Mwiti, through deceit and trickery, cheated 12 members of the Sacco to part with a sum of Sh13 million under the guise that their contributions would grow at a 16 per cent monthly interest rate.

“It cannot be said without doubt that he induced. The allegation cannot be ascertained and in my view the prosecution has failed to prove its case against the accused person as investigators clearly left loose ends in their probe,” magistrate Elena Nderitu said.

She said the Sacco was a legal entity with a list of officials which did not include Mr Mwiti.

“Nowhere does his name appear as an official, a member or a shareholder,” she said.

“The biggest undoing is failure to call the known officials to testify and it is indeed baffling that the prosecution did not secure their attendance as witnesses," the magistrate said.

TRACK OFFICIALS

The magistrate said the investigators did not make efforts to track the Sacco officials “who would have perhaps alleged that the accused was acting behind cover".

"Indeed, it is the evidence of  prosecution witness number 3 who said an official operated a satellite office within the Sacco for the recruitment of members and that she had been introduced to the Sacco by Irene Muthoni who was her classmate and the national coordinator of the Sacoo, why did the police not secure her attendance?" The magistrate posed.

She said this meant the evidence of a crucial witness had not been secured leaving the case with loose ends.

Moreover, the magistrate said, the complainants never saw Mr Mwiti at the Sacco offices during their numerous visits and therefore he cannot be said to have cheated them.

“In the event, the court cannot convict him on hearsay and forthrightly acquits him of all 12 counts unless proven otherwise,” the magistrate said.

The offence of cheating is defined as a misdemeanour in section 315 of the penal code and has a three-year jail penalty.

Mr Mwiti, in his sworn defence, had told court his role had been “purely that of external consultant” and had not participated in the "day to day affairs" of the Sacco.