Family Bank open to scrutiny in NYS probe

November 19, 2015 4:47 am
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On Wednesday, the Director of Public Prosecutions Keriako Tobiko directed that seven senior managers of Family Bank be interrogated and their statements recorded over the theft of Sh791 million at the NYS/XINHUA-File
On Wednesday, the Director of Public Prosecutions Keriako Tobiko directed that seven senior managers of Family Bank be interrogated and their statements recorded over the theft of Sh791 million at the NYS/XINHUA-File
NAIROBI, Kenya, Nov 19 – Family Bank says it will fully cooperate with the office of the Director of Public Prosecutions in the investigations involving the National Youth Service IFMIS scandal.

In a statement, the bank indicated that it has always followed proper procedure and is open for scrutiny to ensure a speedy conclusion to the matter.

It pointed out that its staff are highly trained and executed their duties professionally.

“Family Bank also wishes to reiterate that the funds were transferred into its customer accounts through Central Bank of Kenya via the highly secured and standard RTGS system which is used by all banks,” the statement indicated.

“This RTGS system is used by government for all payments to their contractors, suppliers and other service providers across all banks.”

It pointed out that it has always acted in strict adherence and in compliance with the provisions of the Central Bank Act, the Banking Act and proceeds of crime and Anti-Money Laundering Act.

“The bank has always been open to investigation in this matter and has fully co-operated with the CID, regulator CBK and will do the same with the DPP’s office. We are looking forward to a speedy conclusion of this matter which is of great public interest,” the bank stated.

On Wednesday, the Director of Public Prosecutions Keriako Tobiko directed that seven senior managers of Family Bank be interrogated and their statements recorded over the theft of Sh791 million at the NYS.

Tobiko said the investigations will determine whether the officers will be charged for facilitating or aiding in theft of the money.

Among the officers are Family Bank KTDA Nairobi Branch Manager Robert Nyaga, Branch Customers Service Supervisor Josephine Waira and Operations Supervisor Martin Kagiri.

Others include the Regional Manager Meldon Onyango, Nancy Njami, The Platinum Manager and Head of Risk and Compliance Department.

The Central Bank of Kenya will lead the probe in determining whether there was non-compliance by the bank with provisions of Central Bank Act.

A report will be submitted within seven days “for perusal and appropriate action.”

Tobiko’s directive came after NYS Director General Nelson Githinji and Planning Principal Secretary Peter Mangiti were charged in court.

They are accused of attempting to block an investigation into the conspiracy to steal an additional Sh695 million from the National Youth Service, by inducing Aden Harake from reporting the scheme, and threatening him not to de-commit the money from the IFMIS system.

Githinji stepped aside on Monday saying, “My stepping aside will allow me to focus on protecting my long record of selfless public service.”

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