Bankers testify on Goldenberg cash intrigues

By Wahome Thuku

Three bankers testified how Sh5.8 billion that is the subject of the Goldenberg fraud case was transferred within three days.

Central Bank of Kenya officials Ms Catherine Gitonga and Mr Gerald Gathuto said they prepared the vouchers for transfer of the funds from the paymaster general account to that of the Kenya Commercial Bank (KCB) in 1993.

The instructions were issued in letters by former Finance PS Wilfred Koinange and passed to the junior officers by their supervisor Naomi Munene.

In the second day of hearing on Tuesday, Ms Gitonga said on July 1, 1993, then as a clerical officer, she was instructed by Ms Munene to prepare vouchers to transfer Sh2.8 billion to the KCB account.

She was later asked to prepare similar vouchers for transfer of Sh1.1 billion and Sh1.8 billion. "Normally the funds would be moved by cheques deposited in the clearing house or at the counter," Githuto told trial magistrate Esther Maina.

A retired National Bank manager Mary Ngatia told the court that on April 19, 1993 Sh430 million was transferred to NBK as an overnight lending.

Ms Ngatia, then Finance officer at NBK, said she called businessman Kamlesh Pattni for the credit because her bank had low cash flow.

The money was repaid to Exchange Bank the following day with Sh700,000 interest.

She told the court that a voucher authorising the transfer of funds disappeared from NBK. The disappearance was discovered in August 1994, when a CBK official went to NBK to inquire about it. Hearing continues.