KENYA: Firm in Afya House scandal seeks to have accounts unfrozen

January 2017 DailyNation;  Estama Investments Ltd, the company at the centre of Afya House’s Sh1 billion mobile clinics scandal, has filed an application seeking to lift the court orders which froze its bank accounts.

The anti-corruption court had on January 5 prohibited Estama Investments from accessing its accounts at Equity and KCB banks for a period of six months, following an application by the Ethics and Anti-Corruption Commission (EACC).

Estama, through lawyer Philip Nyachoti, says in court papers that it is aggrieved by the order on the grounds that the monies in the bank accounts were rightfully made out by the Ministry of Health for the supply of portable medical clinics containers in accordance with a Contract Agreement dated July 17, 2015.

The lawyer further said that the contract had been substantially executed by Estama, adding that the orders were obtained by EACC through suppression and misrepresentation of facts.

Lawyer Nyachoti said Estama was currently unable to complete the remaining aspects of the contract because the money which should be applied towards performance of the remainder of that contract has been frozen by the orders issued two weeks ago.

Meanwhile, Kenya Revenue Authority (KRA) through lawyer Okello Ogello separately filed an application saying that Estama has not paid taxes on the Sh800 million it was paid for supplying mobile clinics, but has since moved some of the money to secret offshore bank accounts.

The company is also accused of overstating its costs while supplying the mobile clinics, a move that significantly reduced its VAT liability.

However, Estama said it was tax compliant. The case will be heard on January 24.


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