Three bank CEOs to appear in court over alleged Sh363 million fraud scheme

The chief executive officers (CEOs) of three banks will be required to appear before a Nairobi court next Tuesday over the failure to report suspicious transactions in alleged Sh363 million fraud scheme involving First Assurance Investment Ltd.

The three CEOs of NCBA Bank, KCB Bank Kenya and Co-operative Bank will be required to appear before a Milimani court in August 11 over the alleged failure to comply with reporting institutions obligations.

In the charge sheet tabled before court, NCBA’s John Gachora is expected to appear alongside KCB’s CEO Paul Russo and Gideon Muriuki to answer to multiple counts relating to the fraud.

The charge sheet stated that they conspired with Salim Mohamed Busaidy to defraud First Assurance Investment ltd of the money. It is alleged that they committed the offence on different dates between May 18, 2018 and April 30, 2024.

Mr Busaidy was a director of the insurance firm and is alleged to have stolen a total of Sh363.3 million belonging to First Assurance Investment Co. Ltd. The money allegedly came into his possession by virtue of his being a director of the company.

The Office of the Director of Public Prosecutions (ODPP) said the CEOs will be charged with failure to report suspicious transactions regarding proceeds of crime, contrary to Section 5 as read with Section 44(2) of the Proceeds of Crime and Anti-Money Laundering Act.

The ODPP said investigations established that Busaidy, a former nominated Member of the County Asembly (MCA) forged the signature of his co-director Mr Issa Abdalla Issa Timamy, who is also the Lamu County governor, on multiple company cheques to facilitate the unlawful withdrawal of the company's funds.

Mr Busaidy denied a total of 120 counts including conspiracy to defraud, stealing, 114 counts of making a document without authority, and one count of acquisition of proceeds of crime.