A secretly recorded audio tape and WhatsApp text messages helped the capital markets regulator to gather evidence on corruption accusations against former National Bank of Kenya (NBK) officials.
The audio tape, recorded by an employee of a deposit mobilisation agency contracted by NBK, revealed how senior managers siphoned nearly Sh1 billion from the bank’s coffers and pocketed up to 90 percent of the loot in kickbacks.
At the centre of the scheme, which saw senior managers either sacked or resign from their jobs, was NBK’s former head of treasury, Solomon Alubala.
Many senior NBK officials, board members and an unnamed politician are said to have been co-conspirators in the scam.
The details are contained in confidential minutes of the Capital Markets Authority (CMA) board meetings.
The minutes, which had until December remained confidential in the ongoing court proceedings, were filed in court following an application by former managing director Munir Sheikh Ahmed.
“Senior management of NBK received massive kickbacks amounting to 90 percent of commissions paid to agents who were recruited to mobilise government agencies to deposit money at the NBK,” say CMA minutes for a meeting held on November 19, 2017.
The CMA, however, said there wasn’t enough evidence against the board members and the unnamed politician mentioned in the audio.
Mr Munir is challenging the CMA decision in April 2018 fining him Sh5 million and banning him from holding a board position in a listed firm for a period of three years for his role in the ineffective management of the bank, his failure to ensure the board was furnished with complete and reliable information and for the misrepresentation of the lender’s financial statements.
The former NBK CEO denies these allegations, arguing that the CMA’s sanctions were part of a scheme to make him the sacrificial lamb while protecting other board members.
Mr Munir was among eight senior executives of the troubled bank who were fined and barred from holding office in any public listed company.
NBK hired two firms, Edge Capital and Advest, to help in mobilising deposits and in turn earn 10 percent on the deposits.
Ms Kanini Kioko is named as a director of Edge Capital while Mr Nelson Onzere is a director of Advest.
The CMA established that the NBK board was aware of the hiring of the deposit mobilisation agents and the fact that it was an expensive venture to the bank.