NACADA chief executive officer William Okedi is charged in relation to the loss of funds that were intended for the noble course.

Dr Okedi has denied  he violated procurement laws and  hired a consultant and irregularly paid KSh 12.8 million for the management of funds set aside for the control of alcoholic beverages.
He also faces charges of abuse of office and flouting of procurement laws, a role the prosecution says led to payment to phantom community based organisations(CBOs).

Dr Okedi has denied he failed to ensure NACADA procured a consultant to manage the Alcoholic Drinks Control Fund.

Proper procedures

The fund, the court heard, had been set aside for use by civil society groups to create awareness on Alcoholic drinks.

He is also accused of failing to follow proper procedures when he approved a payment of KSh12.8 million to Ernst & Young, which was contracted to manage the Alcoholic Drinks Control Fund.

The offense was allegedly committed between May 2013 and October 2015.

He is also facing an abuse-of-office charge stating that he conferred on Ernst &Young a benefit in the contract for the provision of financial management agency services.

Five other NACADA officials have already been charged over the offences.

Okedi is out on a KSh3 million bond with a surety of a similar amount and an alternative cash bail of KSh1 million.
Fact finding
Former NACADA chair, John Mututho, told the trial court that  the reason he blew the whistle was not for personal reasons but was because he believed “there was a problem.”
He said a formal report had been made and eye brows raised on the management of the fund.
Mututho said the running of the fund was subject to regulations, a role perceived to be NACADA’s.
He said the fund arose from the Alcoholic Control Act, popular as the Mututho laws of which he was instrumental in establishing.
“Provision No. 13 expresssly outlines what NACADA can do, provide secretarial services including technical evaluation of proposals received for funding,” Mututho explained to a defence lawyer who was suggesting that he had meddled into a business that did not concern him.
Mututho said the CEO irregularily procured the consultant and that the alleged disbursement of funds to civil society groups had been fraudulent.
He said he engaged in a fact finding mission in Mombasa where a phantom CBO had been paid Ksh3 million to run the awareness campaign.
“Some of these civil society groups were not in existence,” Mututho said.
Bad blood
He said he believed the monies were stolen  by staff in collusion with the alleged civil society groups adding that he had “nothing personal” against Okedi after a lawyer suggested he may have fixed the former CEO because of “bad blood.”
“Our working relationship was cordial,” he said adding that in the whistle blowing he believed a fraud had occurred  and was doing what he had to do in getting involved in the anti-corruption investigations.
 Mututho said procurement was done before reporting back to the respective authority in whose docket the fund was embedded.
“NACADA officers through the CEO irregularly procured the consultant,” he said.
Further hearing is on November 29 and 30 2018.