NAIROBI, Kenya, Aug 5 – A former nominated Member of the County Assembly has been arraigned over the alleged theft of more than KSh363 million from First Assurance Investment Company Limited, while the Chief Executive Officers of three leading commercial banks have separately been charged over the handling of the suspected proceeds.
The Office of the Director of Public Prosecutions said the former MCA allegedly abused his position as a director of the investment company to siphon KSh363,420,459 over a six-year period.
According to prosecutors, the accused served alongside Lamu Governor Issa Abdalla Issa on the company’s board.
“The accused allegedly stole the funds between 18th May 2018 and 30th April 2024 by exploiting his position as a director and his access to the company’s bank accounts,” prosecutors told the court.
The DPP approved 120 charges against the accused, comprising three counts of conspiracy to defraud, two counts of stealing, 114 counts of making a document without authority and one count of acquisition of proceeds of crime.
The prosecution alleges that the accused forged Governor Issa’s signature on numerous company cheques to fraudulently authorize withdrawals from accounts held at three banks.
“The accused forged the signature of his co-director… falsely presenting them as duly authorised, thereby facilitating the unlawful withdrawal of company funds,” the prosecution stated.
Separately, the DPP has charged the Chief Executive Officers of three commercial banks with allegedly failing to report suspicious transactions linked to the case.
The three CEOs are scheduled to appear before the Chief Magistrate’s Court on August 11 after summons were issued.
The former MCA pleaded not guilty and was granted a KSh10 million bond with one surety of a similar amount or a cash bail of KSh3 million.
