Nairobi court has frozen bank accounts of four companies alleged to have conspired to defraud City Hall Sh83 million.
In an application on Tuesday, police said the funds were stolen from City Hall accounts on February 25.
The application said the police were investigating alleged conspiracy to defraud and sought the orders to freeze bank accounts of Waylin General Merchants, Fidelity Telecom Services, Rayfa Construction Services and Mully Office Equipment.
Detectives also wanted to access banking statements of the suspected firms from October 1, 2018 to February 25, 2019 as well as the account opening documents.
Meanwhile,in the same court the magistrate rejected an application to detain three senior City Hall officials over alleged theft of Sh7.3 million.
Principal Magistrate Peter Ooko instead, freed Mr Stephen Mwina Mutua, a chief finance officer, his deputy Johnson Akongo Abwori and Mr David Kimburi Wambugu, an accountant, on cash bail of Sh200, 000 each.
The police wanted the three detained for five days, pending completion of investigations.
But the court ruled that the prosecution had failed to table compelling reasons.
Mr Ooko further directed the three to report to the Directorate of Criminal Investigations daily, as the probe continues.
The suspects were arrested on February 25, 2019 and taken to Central Police Station in Nairobi. The police suspect that they conspired with the directors of M/s Nunguni General Suppliers to defraud Nairobi City government of Sh7, 396, 552.
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