Door now open for State to recover cash stashed away

Revelations that Sh51 billion was stashed in secret Swiss accounts by Kenyans in the period ending 2007 was startling and could not have come at a right time. The report coincides with a move by the Ethics and Anti-Corruption Commission (EACC) directing all State and public officials to close all unapproved bank accounts they operate in foreign countries by end of next month.
It is a fact that a number of former and current State and public officers hid their ill-gotten wealth in foreign accounts while others did so to evade tax. Indeed, the Sh51 billion that appears in the leaked dossier that is now the subject of worldwide attention could just be the tip of the iceberg.
According to the Kroll report, which was commissioned by the Kibaki administration in 2002, but later suppressed because it was too hot a potato to handle, more than $3 billion (Sh2.73 trillion by current exchange rates) is believed to have been stashed abroad by top government officials and associates in the previous regimes.
This excludes the billions siphoned from public coffers via other scams such as Goldenberg and Anglo-Leasing. Some analysts estimate that the outward flow of stolen public funds equals the amount of money Kenya receives in foreign aid annually.
This week’s revelations must revive efforts to repatriate all ill-gotten assets. While acknowledging that the process of tracing, freezing, confiscating and repatriating the proceeds of corruption is an intricate one both for legal and practical reasons, it is noteworthy that previously, various countries and the UN Office on Drugs and Crime have offered assistance, which we have not taken full advantage of.
It is our hope the move by EACC on unapproved foreign accounts is the first step in addressing the malaise.It should seek mutual legal assistance in seeking the repatriation of the monies and bring to book culprits involved even as it seeks to put in place mechanisms of combating the same.
As EACC chairman Mumo Matemu noted, Section 19 of the Leadership and Integrity Act prescribes the grounds and conditions for opening, registering, maintaining, controlling and closing bank accounts outside Kenya.
According to the Act, a State officer, who fails to declare operation or control of a bank account outside Kenya, commits an offence and shall, upon conviction, be liable to imprisonment for a term not exceeding five years, or a fine not exceeding $54,950 (Sh5 million) or both. EACC must implement these provisions to the letter.