The Director of Public Prosecutions (DPP) has charged the chief executive officers of three top banks with alleged failure to report suspicion regarding proceeds of crime linked to a Ksh363 million fraud case.
According to the ODPP, the three bank CEOs are expected to take plea before the Chief Magistrate's Court on August 11 after the court issued summons.
The charges stem from an ongoing prosecution against a former nominated Member of the County Assembly (MCA), who is accused of allegedly stealing Ksh363,420,459 from First Assurance Investment Company Limited, where he served as a director alongside Lamu Governor Issa Abdalla Issa.
The prosecution alleges that the former MCA siphoned the money between May 18, 2018 and April 30, 2024 by exploiting his position as a director and his access to the company's bank accounts held at the three banks.
"The Director of Public Prosecutions (DPP) has charged the Chief Executive Officers of three top banks with failure to report suspicion regarding proceeds of crime, contrary to Section 5 as read with Section 44(2) of the Proceeds of Crime and Anti-Money Laundering Act," the ODPP said in a statement on Wednesday, August 5.
In court on Wednesday, Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi said investigations established that the accused allegedly forged the signature of his co-director, Governor Issa Abdalla Issa, on numerous company cheques.
The prosecution told the court the forged cheques were presented as duly authorised, facilitating the alleged unlawful withdrawal of Ksh363 million from the company's accounts.
Following a review of the evidence, the DPP approved 120 charges against the former MCA, including three counts of conspiracy to defraud, two counts of stealing, 114 counts of making a document without authority and one count of acquisition of proceeds of crime.
The DPP further alleges that the accused knowingly acquired Ksh363,320,459, which investigators believe constituted proceeds of crime arising from the alleged theft.
The former MCA denied all the charges before Chief Magistrate Gethi Kibiru and was released on a bond of Ksh10 million with one surety of a similar amount or an alternative cash bail of Ksh3 million.
The case is expected to return to court on August 11, when the three bank CEOs are scheduled to take plea on the charges relating to the alleged failure to report suspicious transactions connected to the case.
