DPP rec­om­mends Fam­ily Bank, other banks charged over NYS pay­ments

Not charg­ing other 27 banks in­volved vi­o­lates the law, two of­fi­cials say

The Star (Kenya) - - Front Page - OLIVER MATHENGE @Oliv­erMa­thenge

Di­rec­tor of Pub­lic Pros­e­cu­tions Ke­ri­ako To­biko has or­dered the pros­e­cu­tion of Fam­ily Bank and seven former em­ploy­ees for aid­ing the money laun­der­ing of the NYS funds.

The Na­tional Youth Ser­vice is re­ported to have lost more than Sh1.6 bil­lion, which was trans­ferred from its Cen­tral Bank ac­count to three ac­counts in Fam­ily Bank. The money was later trans­ferred to other banks to the ac­counts held by sus­pects in the scan­dal.

Fam­ily Bank is ac­cused of han­dling the money and not re­port­ing it to the Fi­nan­cial Re­port­ing Cen­tre, de­spite the sig­nif­i­cant trans­ac­tions.

The bank was fined Sh1 mil­lion for fail­ure to re­port the large trans­ac­tions.

In a let­ter on Mon­day, the DPP also asked the Di­rec­torate of Crim­i­nal In­ves­ti­ga­tions to open in­ves­ti­ga­tions against 28 other banks said to have han­dled the money and re­port to him in three weeks.

To­biko said, how­ever, that there was no ev­i­dence link­ing the bank’s di­rec­tors to the al­leged scan­dal and they should not be charged.

He di­rected the po­lice to fi­nalise the charge sheet against the bank and the seven former em­ploy­ees since he is sat­is­fied with the ev­i­dence.

The let­ter is part of an af­fi­davit that was filed by the DPP in a case where Fam­ily Bank is seek­ing to stop him from prose­cut­ing it.

Fam­ily Bank CEO David Thuku moved to court on Mon­day seek­ing to stop his in­tended pros­e­cu­tion for money laun­der­ing charges.

Thuku and com­pany sec­re­tary Re­becca Mbithi told Jus­tice Ed­ward Muri­ithi that the de­ci­sion to charge them—while no ac­tion has been taken against 27 other banks that han­dled or trans­acted the NYS funds—is a vi­o­la­tion of the Con­sti­tu­tion.

The let­ter seeks to demon­strate that the DPP has ev­i­dence against the bank and its former em­ploy­ees and that in­ves­ti­ga­tions against the other banks have started.

The DPP told the DCI to also look into whether there is any cul­pa­bil­ity or com­plic­ity on the part of the Cen­tral Bank and/or its of­fi­cers in aid­ing and abet­ting the scan­dal.

He said the Na­tional As­sem­bly Pub­lic Ac­counts Com­mit­tee claims that the money was trans­ferred from the Min­istry of De­vo­lu­tion and Plan­ning ac­count held at the Cen­tral Bank of Kenya.

/ HEZRON NJOROGE

MPs Julius Melly and Kanini Kega, lawyer Ce­cil Miller and Fam­ily Bank CEO David Thuku, when the CEO ap­peared be­fore the Na­tional As­sem­bly Pub­lic Ac­counts Com­mit­tee on July 26

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