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20 bank officials linked to NYS scam face arrest

At least 20 senior managers of five commercial banks could be arrest anytime over the Sh1 billion looted from the National Youth Service (NYS).

Investigations by the Directorate of Criminal Investigations have established that some of the managers knowingly allowed key suspects in the  NYS scam to move large sums of money undetected through their banks.

DCI boss George Kinoti, through a letter dated February 7,  has asked the Director of Public Prosecutions Noordin Haji  to charge 20 top officials of  the banks.

Detectives have been investigating the movement of the money through  Standard Chartered, Kenya Commercial, Equity, Diamond Trust and Cooperative banks.

According to details released by Haji last month, StanChart processed a total of Sh1.6 billion between January 2016 and April 2018 out of which Sh588 million was suspiciously transacted by bank officials.

KCB received Sh800 million and was fingered for looking away from transactions valued at Sh148.3 million while Equity Bank got Sh886 million looked away over some transactions in Kenyan shillings and dollars.

DTB received Sh164 million, out of which Sh27.9 million was suspect while Cooperative Bank got Sh250 million out of which Sh25 million raised eyebrows.

Haji later announced he had instructed a team of special prosecutors to review the evidence gathered by DCI and advice if to charge all or some of them.

The prosecutors had 14 days to finish their work and sources said they had cleared their work and advised the DPP on  the way forward.

Sources at the DPP intimated that DCI officers could move into action any time. The Central Bank of Kenya (CBK) has already fined the five banks a total of Sh392 million for failing to report large transactions to the industry regulator.

CBK said the fines were based on the banks’ failure to report large transactions that would have raised a red flag to relevant investigating authorities.

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