Reports have emerged that former Public Service PS Lillian Omollo made millions of cash deposits in to her children’s bank accounts months when theft of funds were reported at the National Youth Service (NYS).
According to the Asset Recovery Agency (ARA) millions of shillings, including a cash deposit of Sh20 million were wired to the accounts registered to Sheela Mbogo, Stephanie Mbogo and Shalom Kamwetu.
“All the accounts held at Diamond Trust Bank (DTB) are in names of the sons and daughters of Lilian Muthoni Mbogo,” said ARA in court documents where it is pushing for a freeze of the accounts.
In addition, “That on or about 20th day of April 2018 … the accounts received Sh20 million suspected to be proceeds or crime or money laundering from the NYS.”
The deposits are said to have been made in a period when more than Sh1 billion was stolen from the NYS through fictitious invoices for goods such as firewood and stationery and multiple payments on one supplier invoice.
The revelation comes days after the Central Bank of Kenya fined Standard Chartered Kenya, Equity, DTB, Co-operative Bank and KCB Group Sh392.5 million for failing to report suspicious transactions in connection with the theft of funds at NYS.
The banks had received a total of more than Sh3 billion from the NYS on behalf of their customers, the CBK said.
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.
Mrs Omollo is said to have deposited cash in her accounts in batches of Sh900,000 to escape the reporting threshold.
Earlier, court documents showed that more than 115 accounts in 14 banks and Unaitas, a sacco, have been frozen over the scandal.
These include several bank accounts belonging to Mrs Omollo— including some to a company, Sahara Consultants, which is linked to her.
“On analysing the accounts, it is clear that the monies were deposited in cash, raising suspicion of possible money laundering and proceeds of crime,” ARA told the court last week.