A company director charged with Sh356 million theft orchestrated fraudulent dealings including manipulation of financial flows to aid his mission, a Nairobi court heard on Thursday.
Two witnesses who testified against Honey Khatwani he
ordered employees to make transactions outside the prescribed procedures
including directing that deposits be made to his personal accounts.
He also employed workers without proper documentation.
Witness Jatin Aswani said he was hired to work for Oki General Trading Limited without any documentation and that despite repeatedly asking Khatwani to facilitate his work permit application, the accused failed to regularise his employment status.
When questioned about evidence of his assertions, Aswani explained that "not everything is done through emails, some things are done through calls," highlighting the informal nature of their communications.
The witness confirmed having signed an employment contract but stated he never received a copy of the said contract, noting that "employment contracts are always with the director, not the employees."
Aswani further disclosed that Khatwani paid staff in cash despite requests for formal banking arrangements, and alleged he was coerced to work through verbal threats, though he acknowledged having no evidence of the threats.
Another witness Sameer Kewal Ramani, who identified himself as Khatwani's relative said he regularly deposited company funds into Khatwani's personal account in both Kenyan shillings and US dollars, as well as into his wife's M-Pesa account, following specific instructions from the former managing director.
Ramani said daily sales reports were shared via WhatsApp, which Khatwani would allegedly alter to hide financial discrepancies.
"I would send him bank receipts via WhatsApp after depositing money in his personal accounts," Ramani told the court.
The witness also revealed that Khatwani had established a competing company, Galaxy Middle East Africa Limited, while still serving as OTCL's managing director, and would personally contact clients of Oki General Trading Limited to redirect business to his new venture.
The court heard that the scheme came to light when an audit revealed Sh356,711,806 had been misappropriated between January 2020 and June 2024.
The witness said Khatwani received clients' cheques intended for Oki General Trading Limited in his personal accounts while also allegedly creating fake invoices to conceal the scale of the theft.
Khatwani was on June 23, charged with stealing Sh356 million from Oki General Trading Limited, where he worked as a director between 2020 and 2024.
He pleaded not guilty to the theft and was released on cash bail of Sh5 million.
Khatwani is an Indian national who lives in Kenya with his family and worked as a director at Oki General Trading Limited in Baba Dogo within Ruaraka constituency.
The charge sheet shows that on diverse dates between January 2020 and June 2024, being a director at Oki General Trading Limited, he stole Sh356,711,174.4, the property of the firm, which came into his possession by virtue of his employment.
Hearing continues next month.
