Sh80m riddle: Senior JSC officials wrote to banking fraud unit to end prosecution

By KIPCHUMBA SOME

In an unprecedented move, the Judicial Service Commission wants a case in which four Judiciary staff have been charged with the loss of Sh80 million two weeks ago stopped.

The Finance and Administration Committee of the JSC, headed by Ahmednasir Abdullahi, has instructed Chief Registrar of the Judiciary Mrs Gladys Shollei to write to Central Bank the Banking Fraud Investigation Unit not to charge the four employees.

This follows complaints by CJ Mutunga, Mr Ahmednasir and Mr Okello that the employees had been arrested without the police completing their investigations.

“Kissinger (Deputy Chief Registrar of Judiciary), the finance committee told you to make sure that nobody is charged in court. These junior officials are sacrificial lambs and incapable of pulling such sophisticated matter. You should not take the commission for fools.” wrote Mr Ahmednasir, on Monday September 23, 2013 at 1:03 pm.

The alleged fraud came to light on September 17 after one of those involved attempted to withdraw some Sh12 million from the Judiciary accounts at CFC Stanbic Bank.

Beneficiary company

When Mrs Shollei reported the matter to the Anti-Banking Fraud Unit and Treasury, the “War Council” took issue that she had not informed the Chief Justice Mutunga who was away on official duty in Colombia.

“The CJ needs to immediately demand accountability on this issue which must include an immediate written demand on when the CRJ got to learn of the alleged fraud and why she chose to act without the imprimatur of the OCJ or JSC,” wrote Prof Ngugi on September 19, 2013 at 2:07 pm.

The same team has attempted to link Mrs Shollei with Lekhar Enterprises, the beneficiary company of the fraud and claims she might be the owner of companies doing business with the Judiciary.

“I understand that these firms are owned by DV (Mrs Shollei) and her associates and receive anywhere up to Sh6 million each week from the institution,” wrote Mr Makokha on September 25 at 12:09 pm.

Mrs Shollei has denied owning any of the companies mentioned or any others doing business with the Judiciary.

Alleged fraud inside the Judiciary: CJ versus police

Tuesday 17th September: CFC Stanbic calls Judiciary Director Finance Benedict Omollo to query a transaction by individual withdrawing Sh950,000 and attempting to withdraw a further Sh10.5m in cash.

DF instructs CFC Stanbic to stop payment and reports to Banking Fraud Investigation Unit (BFIU), which arrests the individual while at the bank.

Judiciary administration follows with immediate request for bank statements, and discovers 11 more questionable payments, summing up to Sh70 million.

Nobody is charged

The new Judiciary ICT system records the sign-ons of all those actioning payments. Five log ons are discovered as having been used in the illegal transactions. These staff are brought in for questioning by the BFIU, in addition to the initial arrest.

CJ emails on hearing of arrests that all people most be released.

BFIU anyway proceeds, questioning 7 people, releasing 3 and moving to charge 4.

CJ emails his personal staff again to say its is “unacceptable” that the police charge these “colleagues”.

JSC Commissioner Ahmednasir Abdullahi writes to Deputy Registrar Kissinger Kakai: “Kissinger the finance committee told you to make sure that nobody is charged in court.”

The BFIU says it will only stop legitimate investigation on receiving JSC resolution and DPP letter to that effect.

CJ instructs JSC, which draws up resolution, and delivers it to BFIU on 25th September. But the unit does not receive a letter from the DPP.

BFIU proceeds with charges, and demands JSC Finance Committee explain why it wants the investigation stopped.