MP Ntutu, PS Korir sued in Dupoto Settlement Scheme Saga

Details now indicate that Lands Principal Secretary Nixon Korir and Narok South Member of Parliament Sylvester Ntutu received Sh300 million and Sh250 million respectively during the payout in the contested compensation involving land by Dupoto Settlement Scheme Members.

In a suit filed by a Concerned Citizen, Francis Awino, the high court has been urged to intervene and recover the money which the two senior state officials are accused of embezzling.

The petitioner says that the Land PS facilitated the secret replacement of Letangule as the advocate of the Scheme Members with Johnson and Sankale whom the compensation was paid without consultation with the members.

“The members of the Dupoto/Dafur Settlement Welfare Scheme appointed the firm of Letangule & Co. Advocates to represent them in the transaction involving the compulsory acquisition of their land by the Kenya Railways Corporation. On October 31, 2023, some officials from the settlement scheme replaced Letangule & Co. Advocates with Johnson and Partners LLP “unprocedurally, unlawfully, and secretly with the help of the senior state officials,” Awino told the court.

It was only later that members were told 38 out of their 93 acres had to be surrendered or they risked not receiving their title, as they also learnt that Kenya Railways had already processed and executed a land transfer of 55 acres through the new law firm, and that Sh2.75 billion had been paid out for the transaction.

Awino reveals that it was then that members were also directed to open bank accounts at Kenya Commercial Bank, a move he believes was intended to conceal the full compensation amount.

Despite the total payout amounting to billions, the group claims they only received under Sh250 million combined, with individual payouts ranging from as little as Sh50,000 to Sh2 million.

They insist the compensation was not only inadequate but also inconsistently distributed.

The petitioner also revealed that Letangule, who had handled the matter for six years, was supposed to receive Sh80 million in legal fees, but he was only paid Sh2 million as the rest of the funds were allegedly diverted by the scheme’s trustees.

The suit breaks down how the money was distributed once it landed in the accounts of the two law firms.

The documents indicate that on December 16, 2023, Sankale & Co. Advocates received Sh1.246 billion, while Johnson and Partners LLP got Sh1.5 billion. Just two days later, the money was disbursed to at least 11 beneficiaries.

Among them, the petition names: Nick Ndenda & Associates (Sh112.25 million), Moniket & Co. Advocates (Sh155 million), Narok South MP Kitilai Ole Ntutu (Sh250 million), and several other law firms, each receiving tens of millions. Notably, on December 19, Sankale & Co. Advocates allegedly withdrew Sh181 million in cash.

The petitioner has requested that the Ethics and Anti-Corruption Commission (EACC), the Director of Public Prosecution (DPP), and the Director of Criminal Investigations (DCI) look into the matter and prosecute those involved in the scandal.

Awino has accused Korir of appointing unfamiliar legal representatives, signing a false sale agreement, and pressuring them to withdraw a previous court case.

“He (Korir) secretly appointed Johnson and Partners LLP Advocates, who were strangers to the plaintiffs, to receive the money paid for compensation to the plaintiffs, in place of Letangule & Co. Advocates who had always been on record for the plaintiffs,” the court documents state.

He also wants Ole Ntutu investigated for allegedly receiving Sh250 million, despite not being a landowner in the scheme.

“He was heard, on several occasions, stating that he had direct instructions from the President of the Republic of Kenya to settle the matter, a claim which turned out to be a ploy to intimidate the plaintiffs,” He shared in the affidavit.

He accused Johnson Osoi of Johnson and Partners LLP is said to have played a direct role in the alleged embezzlement, including the payment of Sh15 million to Seru Moinket.

The petitioner urged the court to prioritize the matter, arguing that Kenya Railways has already taken over 55 acres, and the remaining 38 could end up in unknown hands unless immediate action is taken.

This is the second petition filed suing the PS and the MP over the alleged embezzlement of the scheme funds after City lawyer PLO Lumumba also filed a similar suit.

The case will be mentioned next month before Justice Lawrence Mugambi.