The Director of Public Prosecutions (DPP) has formed a team to review files of the five local banks, which have been linked in the Sh8b NYS scandal (season 2), after the Directorate of Criminal Investigations (DCI) recommended charges against the banks and various officials for abetting the fraud.

Noordin  Haji said that he had constituted a team of special prosecutors to review the findings of the investigation by the DCI and come up with recommendations.

“I have constituted a team of special prosecutors to independently review the respective files and make recommendations within 14 days.” The DPP said in a statement.

Haji said he will also focus on individuals who concealed, facilitated, aided, abetted and benefitted from the loot.

CBK FINES 5 BANKS SH 392M FOR AIDING NYS THEFT

In September 2018, The Central Bank of Kenya (CBK) fined five local banks a total of 392.5 million shillings for handling illegal transactions that saw about Sh 8B looted in the latest National Youth Service (NYS) scandal.

KCB was fined Sh149.5 million, Standard Chartered Bank (Sh77.5 million), Equity Bank (Sh89.5 million), Cooperative Bank (Sh20 million), and DTB (Sh56 million).

According to CBK, these banks are part of 10 that have been under investigations for flouting industry regulations and were prioritized because they handled the highest amounts.

“CBK announces the conclusion of the first phase of the investigation of the banks that were used by these persons in transacting the NYS funds. The investigations prioritized banks that handled the largest flows,” CBK Governor Patrick Njoroge said in a statement.

http://www.kenyaforum.net/2018/09/13/cbk-fines-5-banks-sh-392m-for-aiding-nys-theft/