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

The Star (Kenya) - - Politics Judiciary - CA­ROLE MAINA @MainaCa­role (+)

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.

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