Noordin Haji- The Director of Public Prosecutions has ordered a review of files linking the five commercial banks to mega NYS scam leading to Sh 8 billion loss few weeks after CJ David Maraga warned him against framing weak cases.
The banks whose files will be reviewed in the next two weeks include Kenya Commercial Bank, Equity, Cooperative, Diamond Trust Bank and Standard Chartered Bank.
“I have constituted a team of Senior Prosecutors to independently review the respective investigation files and make recommendations within 14 days,” said The Director of Public Prosecutions.
Following the charges into the NYS phase 2 saga, which involved over Sh8 billion loss, several high profile individuals and entities were charged. Further, the (DPP) directed investigations in respect to five commercial banks named earlier, with regard to violation of legislation that govern banks and provisions of the Proceeds of Crime and Anti Money Laundering Act No.9 of 209 (POCAMLA).
In response to the charges, The CBK the Central Bank of Kenya undertook targeted inspection of the five institutions, which resulted in penalties and strict supervision regime to mitigate and address the identified lapses and gaps among other measures.
The Director of Criminal Investigations on the other side carried out investigation with regard to criminal accountability and has forwarded the files relating to the said lenders with recommendations, that charges should be preferred against the banks, bank officials, individuals and entities for concealing and facilitating, aiding, abetting and benefiting from proceeds of crimes.
According to a statement by Noordin DPP, investigation file no 521/2018 against Standard Chartered Bank established that, the bank received a total of Sh1.6 billion between January 2016 and April 2018, out of which, it was established that the amount of Sh588, 558,000 was suspiciously transacted by bank officials and no report was made to the Financial Reporting Centre (FRC) as required under POCAMLA regulations.
Kenya Commercial Bank on the other hand received a total of Sh 800 million, an amount of Sh 148, 397,000 was transacted by bank officials without following POCAMLA regulations.
Investigations against Equity Bank revealed that the lender received a total of Sh886, 426,904, out of which, it was discovered that an amount of Sh 264, 200, 000 and $58,000 was suspiciously transacted by officials of the bank in violation of the law.
Diamond Trust Bank received Sh 164 million out of which an amount of Sh,946,298 was suspiciously transacted by officials of the bank.
Finally, investigation file number 526/2018 against Cooperative Bank established that Sh250 million was received by the lender out of which Sh 25 million was suspiciously transacted.
The appointment of senior prosecutors came a few weeks after the Chief Justice David criticized the DPP for presenting weak cases thus making it difficult for judiciary to pin the suspects.
“Look at the way you frame cases. How can you put 30 accused persons in one charge sheet? And these thirty people are being represented by same number of lawyers,” he said.
“Those kind of cases will never move, let us speak the truth, find ways of how you frame your cases.”
Maraga addressed the DPP during the Anti-Corruption Conference at the Bomas of Kenya,