Alleged “erroneous” banking of Sh357 million meant for student bursaries to a foreign account by Nairobi county government could be a trick used to trade in the accrued interest.
County Assembly’s Budget and Appropriations Committee questioned why it took City Hall eight days to reverse the cash from Australia’s University of Maryland account to bursary account.
Cooperative Bank officials yesterday appeared before the committee to shed light on the saga. Bank corporate department head Jackie Waithaka said they had raised the red flag and informed City Hall of the erroneous transfer on May 21, contradicting county’s claim that it only learned of the transaction on May 29.
“We immediately notified our client via a call and urged them to give us a directive on what to do,” said Waithaka, adding that the bank did not receive the order to revert the money to the bursary account until May 29.
Committee chair Robert Mbatia questioned the motive in the delay to revert the funds. “From where I sit something does not add up,” he said.