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Kenya: Govt. investigations agency recommends prosecution of five banks for alleged complicity in loss of public funds

Author: Brian Ngugi, Business Daily (Kenya), Published on: 8 February 2019

"DCI probe recommends charges on 5 top banks, officials over Sh8bn NYS fraud"

The Director of Public Prosecutions (DPP) Noordin Haji is reviewing files recommending charges on five banks and their officials in connection with the theft of Sh8 billion at the National Youth Service (NYS). Mr Haji on Thursday said he had received filed investigation files from the Directorate of Criminal Investigations (DCI) recommending criminal charges -- and has formed a team to review the findings. The DPP said the DCI investigations had determined that the banks -- Standard Chartered Bank-Kenya, KCB, Equity Bank, Diamond Trust Bank (DTB) and Co-operative Bank -- did not follow proper procedures, aiding the loss of the NYS funds.

“The Directors of Criminal Investigations (DCI) carried investigations with regards to criminal culpability and has today forwarded the investigation files relating to the said commercial banks with recommendations that the charges should be preferred against the banks, banks officials, individuals and entities for concealing and facilitating, aiding, abetting and benefiting from proceeds of crime..."“I have constituted a team of senior prosecutors to independently review the respective files and make recommendations within 14 days. The decision will be communicated in due course," said the DPP Noordin Haji in a statement...

The law requires all financial institutions including banks, insurance companies and Saccos to file with the Financial Reporting Centre daily reports on transactions above Sh1 million and those deemed suspect. Bank executives and persons who are convicted for handling illicit cash face a Sh1 million fine and a three-year jail term, while institutions including banks, credit unions facilitating such deals could be fined up to Sh20 million upon conviction. Banks could also lose their licences.

Read the full post here

Related companies: Co-operative Bank of Kenya Diamond Trust Bank Kenya Equity Bank Kenya Commercial Bank Standard Chartered