AG takes up pyramid scam cases

January 20, 2012 1:42 pm

, NAIROBI, Kenya, Jan 20 -Attorney General Githu Muigai has moved to expedite the conclusion of all pending court cases on pyramid schemes that saw Kenyans fleeced billions of shillings.

In a statement, the AG wants individuals, groups or organisations that have filed claims in court to forward written submissions and all supporting documents to his office.

Victims are expected to submit the documents at Sheria House before February 3.

The AG says his office will not deal with matters that are not filed in court.

Approximately Sh5 billion belonging to the schemes is believed to be held by the Central Bank of Kenya and other commercial banks in ‘frozen’ accounts according to the Nyenze Taskforce that made an inquiry into the massive fraud.

In November last year the AG undertook to set up a taskforce within his office to help victims of pyramid schemes trace their lost billions.

Muigai told Parliament that his office will provide the requisite resources including legal counsel to conduct independent efforts for recovery.

“The taskforce I am forming is not to investigate this matter further. I want to assist victims and their organisations to bring court action for recovery,” Muigai told Parliament.

The AG made the commitment before the House after Members of Parliament put him and the government to task over failure to assist victims to recover their money despite recommendations by a government taskforce on the matter.

During the debate MP’s accused the Government of shielding proprietors and directors of pyramid schemes from prosecutions.

Yatta MP Charles Kilonzo further accused the AG of hiding behind the newly found independence of the Director of Public Prosecution to withhold answers to the House.

This was after Muigai told the House that decisions that the DPP had taken in term of prosecuting 35 directors of various pyramid schemes was final and could not be questioned.

He said only five cases were in court and that the constitution did not authorise the AG to supervise the DPP.

MPs said the Government was not keen on the matter because some powerful politicians are linked to companies that were involved in the scam.

The taskforce report recommended that police initiate investigations. It added that the Government enlists the services of foreign countries to trace assets that may have been transferred abroad


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