New twist as PAC sum­mons 17 banks over Sh1.6bn NYS scam

Chair­man Gumbo says the fi­nan­cial in­sti­tu­tions will ap­pear be­fore House team or send writ­ten sub­mis­sions to ex­plain the na­ture of trans­ac­tions they car­ried out

The Star (Kenya) - - Politics - JAMES MBAKA @onchir­im­baka

The Pub­lic Ac­counts Com­mit­tee has de­cided to broaden its probe into the theft of Sh1.6 bil­lion NYS cash fol­low­ing fresh de­tails link­ing 17 more banks to the pay­ments.

This brings the to­tal num­ber of banks in­volved in the trans­mis­sion of the NYS pro­ceeds to 28. Eleven of them have been cleared. The banks hold do­main ac­counts for hun­dreds of com­pa­nies con­tracted by NYS as sup­pli­ers and are said to have trans­acted the sums paid to the firms since 2013.

PAC chair­man Ni­cholas Gumbo yes­ter­day said the com­mit­tee will re­quest the DCI and the EACC to look into the trans­ac­tions. “We’re talk­ing about fig­ures prob­a­bly never heard in this room, run­ning into bil­lions of shillings,” he said at a press con­fer­ence at Par­lia­ment Build­ings.

More than 100 firms were in­volved in the NYS scam. The banks named so far in­clude Eq­uity Bank, Di­a­mond Trust Bank, Stan­dard Char­tered Bank, Kenya Com­mer­cial bank, Co­op­er­a­tive Bank, Bar­clays Bank, Con­sol­i­dated Bank of Kenya, First Com­mu­nity Bank, Bank of Bar­oda, I&M Bank, Transna­tional Bank, National Bank, NIC Bank and Chase Bank.

Oth­ers are Bank of Africa, Hous­ing Finance, Jamii Bora, Sid­ian Bank, Com­mer­cial Bank of Africa, Fidelity Bank, Eco Bank, CFC Stan­bic, Old Mutual Bank and African Bank Cor­po­ra­tion.

Gumbo said the fi­nan­cial in­sti­tu­tions will have to ap­pear be­fore PAC

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