Fraud investigator narrates how NSSF lost Sh1.6 billion
Deputy director in charge of investigations John Lolkoloi says Discount Securities Ltd would write to NSSF, claiming it had bought shares and demand payment
An investigator yesterday told a Nairobi court how the National Social Security Fund lost Sh1.6 billion through fraudulent transactions.
John Lolkoloi, the deputy director in charge of forensic investigations, told trial magistrate Lawrence Mugambi that Discount Securities Ltd would write to NSSF claiming it had bought a specific number of shares.
It would then request to be paid a specific amount of money according to NSSF orders.
Lolkoloi, who was the lead investigator in the scam, said the directors would then ask for specific Nairobi Stock Exchange numbers indicating they had bought the shares.
He said this was established by checking NSE reference numbers with information from the Central Depository and Settlement Corporation.
“We established from CDSC that either less quantity was purchased or no purchase was made by Discount Securities,” Lolkoloi said.
He told the court Discount Securities received Sh1.6 billion for shares not purchased.
In the case, William Murungu, former director and chairman of Discount Securities board of directors, was charged alongside David Githaiga, James Akoya, Wilfred Weru, Isaac Nyakundi, Mary Ndirangu and Francis Moturi. They are accused of causing NSSF to pay Sh1.6 billion for shares not bought. The witness, who was led through his testimony by state prosecutor Mungai Warui, presented six vouchers among the 47 allegedly claimed by DSL.