The Director of Public Prosecutions (DPP) has charged the chief executive officers of NCBA Bank, KCB Bank, and Co-operative Bank with failing to report suspected proceeds of crime in connection with an alleged Sh363.3 million fraud scheme.
The court issued summonses for the three bank CEOs to appear before the Chief Magistrate Court on August 11.
The charges stem from an investigation into the alleged theft of Sh363.32 million from First Assurance Investment Company Limited.
Separately, prosecutors on Tuesday arraigned a former nominated Member of the County Assembly (MCA), accusing him of stealing the funds while serving as a director of the company alongside Lamu Governor Issa Abdalla Issa.
According to the prosecution, the accused allegedly misappropriated the money between May 18, 2018, and April 30, 2024, by exploiting his position as a director and access to the company’s bank accounts held at NCBA Bank, KCB Bank, and Co-operative Bank.
Deputy Director of Public Prosecutions Nora Otieno and Principal Prosecution Counsel Willy Momanyi told the court that the DPP approved 120 charges against the accused following a review of the evidence.
The charges include 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 prosecution alleges that the former MCA forged the signature of his co-director, Governor Issa Abdalla Issa, on numerous company cheques, falsely presenting them as authorized to facilitate the withdrawal of company funds.
The DPP further alleges that the accused knowingly acquired Sh363.3 million as proceeds of crime arising from the alleged theft.
The accused pleaded not guilty before Chief Magistrate Gethi Kibiru and was released on a Sh10 million bond with one surety of a similar amount or an alternative cash bail of Sh3 million.
The charges against the three bank CEOs relate specifically to the alleged failure to report suspicious transactions as required under the Proceeds of Crime and Anti-Money Laundering Act.
