– Central Bank of Kenya undertook targeted inspection of the five banks and heavily penalised them
– The five banks are Standard Chartered, KCB, Equity, DTB and Cooperative Bank of Kenya
– These banks allegedly aided the theft of KSh 8 billion through the National Youth Service season two scandal
– Directorate of Criminal Investigations wants the banks, their officials and entities to face criminal charges for aiding and benefiting from the crimes
– The DPP has formed a special team of prosecutor to review DCI’s findings and recommend appropriate charges within two weeks
The Directorate of Criminal Investigations (DCI) has recommended criminal charges to be taken against five commercial banks over their involvement in theft of KSh 8 billion through National Youth Service (NYS) scandal.
Central Bank of Kenya (CBK) had investigated roles of the banks in abetting illegal transactions involving the money and heavily penalised them for flouting banking regulations but DCI wants them to face the law over criminal offences they committed.
Director of Public Prosecutions Noordin Haji said he has commissioned a team of special prosecutors to review findings established by DCI and recommend appropriate charges within 14 days. Photo:Nation
In a statement to the press on Thursday, February 7, Director of Public Prosecutions (DPP) Noordin Haji said the DCI had forwarded findings showing the banks were culpable of criminal offences and wanted them charged in court for the same.
The five financial institutions are; Standard Chartered Bank, Kenya Commercial Bank (KCB), Equity Bank, Diamond Trust Bank (DTB) and Cooperative Bank of Kenya.
“The DCI carried out investigations with regard to criminal culpability and has today forwarded investigation files relating to the said commercial banks with recommendations that charges should be preferred against the banks, bank officials, individuals and entities,” read part of Haji’s statement.
These charges are anchored on grounds that the banks and bank officials concealed, facilitated, aided and benefited from the proceeds of the crime.
Standard Chartered Bank is on the spot for receiving KSh 1, 628, 902, 000 between January 2016 and April 2018 out of which KSh 588, 558, 000 was suspiciously transacted by bank officials.
Directorate of Criminal Investigations boss George Kinoti. The agency wants Director of Public Prosecution to prefer criminal charges against the five banks for their role in NYS scandal. Photo: UGC
No report about the transactions were made the Financial Reporting Centre.
Kenya Commercial Bank is hunted for receiving KSh 800 million, out of which KSh 148, 397, 000 was transacted illegally by bank officials.
Equity Bank allegedly received KSh 886, 426, 904 out of which KSh 264, 200, 000 and 58,000 US dollars were suspiciously transacted by bank officials.
Diamond Trust Bank received KSh 164 million out of which KSh 27, 946, 298 was suspiciously transacted.
Cooperative Bank of Kenya Bank received a total of KSh 250 million out of which KSh 25 million was illegally transacted.
“I have constituted a team of senior prosecutors to independently review the respective investigation files and make recommendations within 14 days,” said Haji.