Nairobi — The Ethics and Anti-Corruption Commission (EACC) has arrested three suspects over the alleged theft of Sh4.8 million earmarked for six rural electrification projects in Igembe North Constituency that investigators say existed only on paper.

The anti-graft agency said the money, allocated under the National Government Constituencies Development Fund (NG-CDF) during the 2014/15 financial year, was intended to procure and install six electricity transformers to connect rural communities to the national grid.

Instead, EACC said on Wednesday the funds were siphoned through project bank accounts and withdrawn in full on the same day they were disbursed, with no transformers ever procured or installed.

Those arrested are former Igembe North NG-CDF Fund Manager Pauline Waruguru Mwangi and account signatories James Muroki Eusebio and James Ntonjira Ntongai. A fourth suspect, Joshua M'Maroo, remains at large.

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According to the EACC, the Sh4.8 million was allocated equally among six projects at Buathine, Ethiopia, Ntobocui, Luciuti MCK, Marere Centre and Muurune, with each site receiving Sh800,000 for the purchase and installation of a transformer.

Investigators established that the funds were transferred into six project bank accounts before being withdrawn on the same day by the account signatories with the authority of the then NG-CDF fund manager.

"The Commission established that the funds were transferred into six project bank accounts and withdrawn on the same day by the account signatories... with the authority of the then NG-CDF Fund Manager," the EACC said.

The agency said the suspects later claimed the Rural Electrification Authority (now the Rural Electrification and Renewable Energy Corporation) and Kenya Power had been engaged to undertake the works.

However, investigations found that neither institution received any payment or communication regarding the projects.

"Both institutions confirmed that they neither received any payment nor any communication regarding the procurement. No transformers were procured or installed at any of the identified project sites," said EACC Secretary and Chief Executive Officer Abdi Mohamud.

Following the investigations, the EACC forwarded its inquiry file to the Office of the Director of Public Prosecutions, which approved charges against all four suspects.

They face charges including conspiracy to commit an offence of corruption, unlawful acquisition of public property, abuse of office and misappropriation of Constituency Development Fund resources.

The three arrested suspects are expected to be arraigned before the Meru Law Courts to plead to the charges.

The EACC has directed the remaining suspect, Joshua M'Maroo, to report to its Upper Eastern Regional Office in Isiolo, or the nearest EACC office, for processing and arraignment.

The commission said it remains committed to safeguarding public resources and ensuring that those involved in corruption and economic crimes are held accountable.