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Ex-banker testifies in Goldenberg case

By | April 17th 2012

By Wahome Thuku

The first witness in the Sh5.8 billion Goldenberg case took the stand on Monday, some 19 years since the alleged offence was committed.

Mr Stephen Ng’ethe, a retired banker, opened the list of more than 30 witnesses lined up to testify,

Ng’ethe, who was the KCB Funds Manager till his retirement in 2000, opened the case with evidence on how the Sh5.8 billion was transferred from the bank’s account at the Central Bank to four other commercial banks on instructions of then Kenya Commercial Bank (KCB) general manager Elijah arap Bii.

Ng’ethe said he was first instructed by Bii to prepare credit vouchers for the CBK to transfer the funds to other banks on April 1, 1993.

"I asked him why KCB was being used as a conduit rather than CBK transferring the funds directly to other bank accounts and he told me it was a government instruction which could not be questioned," he told Nairobi Chief Magistrate Esther Maina.

That day some Sh413 million was credited to National Bank, Sh500 million to Post Bank and Sh470 million to Trans National Bank. The other banks where the money was trasnfered are Delphis Bank and Exchange Bank.

Cross-examining the witness, Bii denied claims that the Government issued the instructions to transfer the funds.

"The Government was not involved in this matter," he said.

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