Five banks ‘suspiciously’ handled Sh1bn NYS cash, DCI tells DPP

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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.

More on this: CBK probes 6 banks over NYS payments

Also read: NYS Scandal: PS Lillian Omollo, NYS Director Richard Ndubai step aside

 

 

 



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