•The seven former bank managers are accused of failing to report suspicious transactions involving Sh1.6 billion made by Josephine Kabura
•Last January, the magistrate discharged Family Bank from the case after it paid Sh64.5 million fine
A case in which seven former senior Family Bank managers are accused of failing to report suspicious transactions involving Sh1.6 billion made by NYS prime suspect Josephine Kabura will be heard on August 5
Milimani chief magistrate Francis Andayi on Monday ruled on the hearing date in the absence of the state prosecutor who was on official duties in Mombasa. The case will be mentioned on May 21.
Last January, the magistrate discharged Family Bank from the case after it paid a Sh64.5 million fine for failing to report suspicious transactions involving Sh1.6 billion made by Kabura. It had entered a plea bargaining agreement with DPP Noordin Haji.
The accused are former CEO Peter Munyiri, former KTDA branch manager Robert Oscar Nyaga, former anti-money compliance manager Charles Kamau Thiong'o, former head of risk and compliance Raphael Mutinda Ndunda, former operations supervisor Nancy Njambi, former relationship platinum manager Meldon Awino Onyango and former customer service supervisor Josephine Wairimu.
The bank admitted the charges through its head of security John Muchiri Kingo'ri.
"Having considered the submissions made by Deputy DPP Dorcas Oduor, defence team and the plea bargaining I pass sentence as follows; the bank to pay a fine of Sh40 million to court and Sh24.5 million to be restituted to NYS through the Ministry of Public Works. Failure to honour the same will result in attachment of Family Bank properties," Andayi ruled.
The plea bargaining was entered into on December 11, last year, with the bank agreeing to pay Sh6.6 million fine per each count. Three of the charges were dropped.
"The plea bargaining having been signed by all parties and King'ori being explained of his rights, the court accepts the plea agreement as it is satisfied that the accused person is competent to represent Family Bank in the case and plead guilty to the charges," Andayi ruled.
Oduor had told the court that the DPP had taken into account that Family Bank agreed or consented to cooperate with them and investigators.
"We acted in the public interest, upheld the rule of the law and the rights of the victims while entering into the plea agreement with the bank. We feel that justice has not only been seen to be done but has been done," she said.
She also said that Family Bank had cooperated with the regulator, Central Bank of Kenya, and had put mechanisms to deter recurrences of similar transactions.
The bank was represented by lawyers Waweru Gatonye and Cecil Miller.
"The regulator had vindicated its position there was a failure to report suspicious transaction by the Family Bank. Most important is that the victim will be compensated accordingly," Gatonye said.
The charges stated that Family Bank had failed to report that Kabura opened several accounts carrying out business as Reinforce Concrete Technologies Limited, Roof and all Trading Ltd and Form Home Builders Ltd.
The offences were committed between December 22, 2014, and May 19, 2015, at Family Bank KTDA branch, Nairobi.
The NYS cash was paid in the three accounts held at the bank and later transferred to other bank accounts held by Kabura.
The other charges included not reporting money laundering activities and not filing Sh1 million cash transactions.
Kabura has since been charged alongside other 10 suspects with money laundering in another court.