Bid to have firms' accounts in NYS Sh790m scam unfrozen opposed

The Banking Fraud Investigations Unit has opposed the lifting of a freeze on the bank accounts of companies linked to the National Youth Service (NYS) Sh791 million scam.

The unit argued that allowing the owners to access the accounts will interfere with the ongoing investigations.

Jeremiah Matipei, an investigator attached to the unit in the Directorate of the Criminal Investigations, in a sworn replying affidavit, said the orders sought by the complainants to have their accounts unfrozen will prejudice the recovery of public funds.

"The orders sought prohibiting investigations and possible prosecutions should not be granted as they will interfere with the constitutional mandate of the respondents to investigate and prosecute any criminal conduct," he said.

According to Mr Matipei, the investigations in the matter are still ongoing and revealing any further information at this stage will prejudice the process and potential witnesses are likely to be intimidated.

The Fraud Unit wants the court to dismiss the application by some of the companies mentioned in the scam that have sought orders to have their accounts unfrozen on the grounds that their operations have been grounded.

When the matter came up for hearing before judge Joseph Onguto Monday, the Deputy Solicitor General Muthoni Kimani, on behalf of the Attorney General, who has been enjoined in the suit, said she wanted to do a replying affidavit.

The investigator said all the complainants were involved in the conspiracy to steal Sh695,450,000 from the NYS.

Matipei added that several payments amounting to Sh791,385,000 were made to three companies; Home Builders Company, Roof and All Trading, and Reinforced Concrete Trading.

Receiving companies

Home Builders received Sh21,925,000 from NYS On December 22, 2014 and January 21 2015, Roof and All Trading received Sh252,300,000 between February 5, 2015 and March 27, 2015, and Reinforcement Concrete Trading received Sh320,160,000 between February 5, 2015 and March 31, 2015.

"The investigations established that all the three companies belong to Josephine Kabura Irungu, the first petitioner," says Matipei in his sworn affidavit.

He further said the investigations indicates that the payments were made via the bank accounts of the above named three companies in Family Bank, which were opened between December 13 and 14, 2014.

He said once the money was deposited, it was transferred to several individuals and companies' accounts, which necessitated further investigation of the said accounts.

The investigator told the court that the petitioners had not disclosed the other alleged bank accounts affected by the freezing orders as directed by the court.