[2024] KEHC 7719 (KLR)
The court found that the applicant had demonstrated sufficient grounds for the issuance of a preservation order over the funds held in the 1st respondent's accounts with the 2nd respondent. The funds are alleged to be public monies paid without proof of services rendered, raising suspicion of corrupt conduct. The...
Source-derived case information.
- Citation
- [2024] KEHC 7719 (KLR)
- Parties
- Applicant: Ethics and Anti-Corruption Commission; Respondent: M/S Papaton Security Services Limited; Respondent: M/S Equity Bank Kenya
- Court
- High Court
- Court Station
- High Court at Kisumu
- Jurisdiction
- Kenya
- Case Number
- Miscellaneous Civil Application E266 of 2024
- Procedural Posture
- Miscellaneous Application / Ruling on Interlocutory Preservation Order
- Outcome
- interlocutory preservation order granted
- Judges
- RE Aburili
- Legal Topics
- Interlocutory Orders, Asset Preservation, Proceeds of Corruption, Bank Account Freeze, Public Funds, Urgent Applications
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Ethics and Anti-Corruption Commission
Applicant
M/S Papaton Security Services Limited
Respondent
M/S Equity Bank Kenya
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Interlocutory Preservation Order
Legal Issues
- 1 Whether the applicant has established a prima facie case for the issuance of a preservation order over funds held in the 1st respondent's bank accounts.
- 2 Whether the funds in question are suspected proceeds of corrupt conduct or corruption.
- 3 Whether the preservation order is necessary to prevent dissipation of public funds pending investigation.
Ratio Decidendi
The court found that the applicant had demonstrated sufficient grounds for the issuance of a preservation order over the funds held in the 1st respondent's accounts with the 2nd respondent. The funds are alleged to be public monies paid without proof of services rendered, raising suspicion of corrupt conduct. The court held that preservation is necessary to prevent the possible transfer or withdrawal of the funds before investigations are completed, thereby safeguarding public interest and enabling the applicant to fulfill its statutory mandate. The court therefore granted the orders sought, prohibiting the respondents from dealing with the funds for six months, subject to further orders...
Court Disposition
interlocutory preservation order granted
Orders
- A preservation order is issued prohibiting the 1st and 2nd respondents from transferring, withdrawing, disposing, or in any manner dealing with the money in accounts Nos. 0290297198173 and 0960275676767 in the name of Papaton Security Services Limited at Kisumu and Mbale Branches of Equity Bank Kenya for six months.
- The applicant shall serve the preservation order upon the 2nd respondent for immediate compliance and thereafter upon the 1st respondent.
Full Case Text
Judgment text and source record
30 paragraphs
Ethics and Anti-Corruption Commission v M/S Papaton Security Services Limited & another (Miscellaneous Civil Application E266 of 2024) [2024] KEHC 7719 (KLR) (27 June 2024) (Ruling)
Neutral citation: [2024] KEHC 7719 (KLR)
Republic of Kenya
In the High Court at Kisumu
Miscellaneous Civil Application E266 of 2024
RE Aburili, J
June 27, 2024
Between
Ethics and Anti-Corruption Commission
Applicant
and
M/S Papaton Security Services Limited
1st Respondent
M/S Equity Bank Kenya
2nd Respondent
Ruling
1. I have considered the application dated 27th July 2024 by way of Originating Motion, the grounds on the face thereof as well as the supporting affidavit sworn by Lizbeth Kawira the EACC Investigator.
2. I am satisfied that the application is urgent and ought to be considered expeditiously, in the first instance. I certify the application as urgent.
3. On the prayer sought and whether conservatory interlocutory preservation order ought to be issued, I observe that the matter in issue involves Public funds which are alleged to be paid or being paid to the 1st Respondent M/s Papaton Security Services Limited by the County Government of Kisumu, without proof of any services rendered to the said County Government, and the payments are being channelled through M/s Equity Bank of Kenya, Kisumu Branch and Mbale Branch via Account Numbers 0290297198173 and 0960275676767 in the name of the 1st Respondent Papaton Security Services Limited.
4. The Applicant is apprehensive that unless those funds already paid into those accounts as stated herein are preserved, being suspected to be proceeds of corrupt conduct or corruption which the applicant is mandated to seek recovery or forfeiture of from the Respondents, the said sums of money will be transferred, or withdrawn before investigations are completed.
5. The Applicant therefore prays for the orders preserving the said funds held in the said accounts with Equity Bank Kenya and prohibiting the 1st Respondent, its agents, servants or any other person from withdrawing, transferring, disposing or in any manner dealing with the money in the two named accounts for six (6) months.
6. The estimated amount of money received and or paid into the named Bank accounts is Kshs.200,000,000 (Two Hundred Million Kenya Shillings).
7. Having considered the application as presented and the provisions under which the application is premised, I am satisfied that for the Applicant to fully undertake investigations and rule out any possibility and suspicion that the 1st Respondent is involved in receiving proceeds of corrupt conduct or corruption and receiving such monies through the 2nd Respondent’s Bank and accounts held at Kisumu Branch and Mbale Branch respectively, held in the name of the 1st Respondent Papaton Security Services Limited, I hereby grant the orders sought, preserving the monies held in the accounts Nos. 0290297198173 and 0960275676767 in the name of Papaton Security Services Limited at the Kisumu and Mbale Branches of Equity Bank Kenya.
8. This preservation order prohibits the two (2) Respondents herein from transferring or permitting the transfer or withdrawal from the said two accounts any money by any person except by the order of this court and the prohibition shall last for a period of six (6) months from the date of service of this order upon the 2nd Respondent for immediate compliance unless the period herein stated is extended by this court.
9. The Applicant shall, upon service of the order upon the 2nd Respondent for compliance, serve the said order upon the 1st Respondent. This is necessary for preservation of the funds held in the two accounts.
10. Any of the parties served with the order of preservation of the funds and upon such compliance with the said order, is at liberty to apply to court.
11. An order be extracted from this ruling.
12. Mention on 26th September 2024 to confirm compliance.
13. I so order.
Dated, Signed and Delivered at Kisumu this 27th Day of June, 2024R. E. ABURILIJUDGEPage 4 of 4