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Ex-NSSF boss, others slapped with Sh10bn fine in fraud suit

 

A former National Social Security Fund (NSSF) manager, three Discount Securities Limited officials and their employer found guilty of stealing Sh1.2 billion from the fund have been fined a total of Sh10 billion or serve 14 years in prison each. 

Former NSSF investment manager Francis Muturi, Discount Securities ex-employees David Githaiga, Wilfred Weru and Isaac Nyamongo were convicted for stealing from the workers’ fund through the purchase of shares.

The accused who appeared before Anti-Corruption Magistrate Lawrence Mugambi also faced fraudulent disposal of public property, illegal payment from public revenue, willful failure to comply with the applicable procedures and guidelines relating to the procurement of property, fraudulent acquisition of public property, conspiracy to defraud, deceiving principal, stealing by agent and neglect of official duty charges.

According to court papers, Moturi has been fined 2, 404,286,744, Githaiga, Sh802,762,248, Weru Sh802,762,248, Nyamongo, Sh802,762,248 while Discount Securities has been fined Sh4,806,573,489.

Mugambi, however, acquitted James Akoya [former NSFF finance general manager], Mary Ndirangu [former NSSF internal audit manager] and Orchard Estate Limited.

According to Mugambi, the prosecution had proved that the four conspired with the collapsed stockbroker to steal public funds.

The case started in 2008 after the Ethics and Anti-Corruption Commission received a report that NSSF had lost Sh1.6 Billion of Pensions Funds through irregular trading in shares through Discount Securities Limited.

Upon completion of the investigations, the Commission submitted its investigation report to the DPP who upon review recommended that Moturi, Akoya, Murungu (director, Discount Securities Limited), Githaiga (director, Discount Securities Limited), Weru (finance Manager, Discount Securities), Nyamongo (investment manager, Discount Securities), Orchard Estates Limited and Mary Ndirangu be charged with various offences.

In 2010, the suspects were arrested and arraigned at Nairobi’s Milimani Anti-Corruption Court where they pleaded not guilty to the charges.

William Murungu, however, died as the case proceeded and proceedings against him were marked abated. The prosecution called 35 witnesses.

In March 2019, the court ruled that all the accused persons had a case to answer and put them on defence.

On Friday, Mugambi read the judgment.