Three Kieleweke MPs have warned banks against colluding with looters to help them launder and exchange large sums of Sh1,000 notes.
Ngunjiri Wambugu of Nyeri Town, Paul Koinange of Kiambaa and Kiambu Woman Representative Gathoni wa Muchomba told banks on Monday not to be tempted to help anyone who has hidden huge sums for fear of banking them.
They spoke at Nyamachaki PCEA Hall in Nyeri. Wambugu disbursed more than Sh27 million bursary cheques from the NG-CDF kitty.
On June 1, the Central Bank unveiled new banknotes reportedly to fight fraud.
CBK Governor Patrick Njoroge said Sh1,000 notes will be withdrawn from October 1 and will cease to be legal tender.
Those with unbanked Sh1,000 notes will be required to use them or exchange — and provide many details to their banks when they do.
“For somebody to take more than Sh1 million to a bank, he or she must explain the source of the money,” Wambugu said.
He said banks should not allow the corrupt to change or deposit proceeds of corruption that they have been hiding.
The MP said those who went on a looting spree and stole billions of shillings are wondering where to take it.
Wambugu said money was meant to bribe MPs to support a certain 2022 presidential candidate. The rest was to be used to bribe voters in 2022.
Koinange said the looted money could have been used to pay school fees for needy children, NHIF for the elderly or fund development projects.
“The government is alert for 24-7 from Monday to Sunday and from January to December. Those who think they can use shortcuts exchange the notes through the backdoor will fail,” Koinange said.
He downplayed reports people will change Sh1,000 notes into US dollars and estimated the hidden money at about Sh600 billion. Forex reserve is only $20 billion, he said.
Wa Muchomba said those who had invested in bunkers to hide loot have everything to lose.
