How a trader in Migori mega heist opened secret accounts

Businessman Jared Oluoch Kwaga at a court in Nairobi with former Migori Governor Okoth Obado (right). [File, Standard] A businessman suspected to have siphoned millions of shillings from Migori County Government opened secret bank accounts using proxies, a court has heard. Rachael Chepkorir, a former bank manager at Cooperative Bank, testified that they were forced to close seven bank accounts belonging to businessman Jared Oluoch Kwaga after noticing suspicious activities. "The suspicion of the cash operations in the said accounts led us to terminate our relationship with the customer. I called him to explain why he had opened the accounts using proxies but his answer was unsatisfactory and we decided to shut them," said Chepkorir. Although he did not disclose how much money Kwaga had stashed in the seven accounts, she told the court that they wrote him a banker's cheque with all his money and sent him away to look for another bank. Chepkorir was testifying in a case where Ethics and Anti-Corruption Commission is seeking to recover assets worth Sh73 million from Kwaga alongside former Migori Governor Okoth Obado and his four children Evelyne Odhiambo, Dan Achola, Scarlet Susan Okoth and Jerry Zachary Okoth. She said in 2014, Kwaga opened three bank accounts at Cooperative Bank's Parliament Road branch using his name. Within the same period, he used his wife Christine Ochola to open another account in her name and his brother Patroba Ochanda to open another three accounts in the names of Dolphus Software Limited, Swiftcom Engineering and Joyous Limited. Businessman Jared Kwaga when he launched his bid for Uriri parliamentary seat on March 4, 2022. [Caleb Kingwara, Standard] However, within a month, Christine and Patroba changed the account details and handed them to Kwaga as the sole signatory. "The accounts were opened by other people but within a short time, the mandate was handed over to Jared Kwaga who subsequently assumed operations of the accounts directly," said Chepkorir. According to the witness, the secret opening and operations of the account went on for two years until 2016 when the bank's team leaders raised concerns over the transactions. Alarmed that Kwaga's dealings amounted to breach of banking regulations, Chepkorir said she called him for a discussion but she could not get a satisfactory explanation. "He told me he was employed and needed someone else to open the accounts for him but the explanation was not satisfactory. He was not able to convince bank with the reasons and since he was our executive customer, we decided to close the accounts and refunded his money," she said. Chepkorir testified that apart from the names on the people who opened the accounts, all other details were the same including the postal address and the source of funds which made them believe they were from Kwaga. EACC claims the ex-governor colluded with Kwaga and devised a scheme to misappropriate the funds totalling Sh73,474,376. According to EACC, Sh38,949,376 was wired to Obado's children for their university tuition fees and upkeep, and a portion used to purchase two Land Cruiser vehicles while the remaining Sh34,525,000 was used to purchase a house at Loresho Ridge House in Lavington, Nairobi. EACC wants Obado, his children and Kwaga compelled to forfeit to the state the house and two vehicles, claiming are proceeds of crime.

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