Five banks 'suspiciously' handled Sh1bn NYS cash, DCI tells DPP

Director of Public Prosecution Noordin Haji (L) with Director of Criminal Investigations George Kinoti before Senate Justice and Legal Affairs Committee on the progress made in the multi-agency fight against corruption and economic crimes, August 29, 2018. /JACK OWUOR
Director of Public Prosecution Noordin Haji (L) with Director of Criminal Investigations George Kinoti before Senate Justice and Legal Affairs Committee on the progress made in the multi-agency fight against corruption and economic crimes, August 29, 2018. /JACK OWUOR

The DPP has constituted a team of prosecutors to review files of five banks for

concealing and

facilitating the theft of Sh9m in the NYS scam.

Investigations from the DCI noted that Standard Chartered Bank, Kenya Commercial Bank, Equity Bank, Diamond Trust Bank and Cooperative Bank

aided and abetted the theft.

"The DCI has today

forwarded the

investigation files relating to the commercial banks with recommendations," Noordin Haji said.

In a statement on Thursday, Haji said the DCI asked that charges be preferred

against the banks, bank officials, individuals and entities.

The charges are for concealing and facilitating, aiding, abetting and benefiting

from proceeds of the crimes.

During the investigations, it was found that Standard Chartered Bank received Sh1,628,902,000 between January

2016 and April

2018.

Out of this, it was established that Sh588,558,000 was suspiciously

transacted by bank officials and no report was made to the financial reporting centre.

According to the DCI,

KCB

received Sh800 million but Sh148,397,000 was transacted by bank officials without following proper regulations.

Equity

Bank is said to have received Sh886,426,904 out of which it was established that Sh264,200,000 and Sh5,808,671 was suspiciously

transacted

by officials of the bank in violation of the law.

Diamond Bank is said to have

received Sh250 million with investigations

revealing that Sh25 million

was suspiciously

transacted through the bank.

"I have constituted a team of senior prosecutors to independently review the files and make recommendations within 14 days," Haji said.

Last year, the Central Bank of Kenya said the banks risk a Sh20 million fine if found guilty of flouting industry regulations.

The Star established that the banking regulator is tightening the noose on banks that transacted money looted from the National Youth Service without following strict guidelines.

It emerged that some of the banks targeted in wide-ranging investigations allowed their clients to withdraw bulk cash without justification as required by the CBK rules.

Some of the companies under probe are said to have opened accounts a few hours before the NYS money was credited, signalling complicity, complacency or negligence that aided fraud.

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