BY NT CORRESPONDENT.
Family Bank has lost it bid to settle a money laundering criminal case in which the bank is charged with failing to report unusual transactions carried out by the NYS suspect Josephine Kabura.
The Director of Public Prosecutions has directed that the money laundering case against top managers of Family bank proceeds to full hearing and determination of the criminal case.
Through State Counsel Christine Achieng, Noordin Haji told Milimani Chief Magistrate Francis Andayi that the matter in which 8 senior managers are facing criminal charges involving prime suspects in the 791 Million NYS scandal should proceed to full trial.
Family Bank had approached the DPP in 2017 for an out-of-court settlement through l defence lawyer Cecil Miller,where they had written a proposal for an out-of-court deal to the DPP.
He told the court that they had initiated talks with the DPP to explore an out-of-court settlement which may bring the matter to an end.
The accused are Family Bank chief executive John King’ori and former CEO Peter Munyiri are charged alongside KTDA branch manager Robert Nyaga, Anti-money compliance manager Charles Thiongo, Head of Risk and Compliance Raphael Ndunda, Operations Supervisor Nancy Njambi, Relationship Platinum manager Meldon Onyango and Customer Service supervisor Josephine Wairia..
They are charged with failure to report significant transactions carried out by Kabura’s three accounts at the bank. All the accused person have denied the charges and are all out on a Sh1 million bond. The charge sheet says bank officials knew about the suspect dealings in Kabura’s accounts and failed to report it.
Last year September the Bank of Kenya asked for more time to settle a money laundering case with Government.
The bank and its former Managing Director Peter Munyiri sought more time to pursue an out of court settlement with the newly appointed DPP.
SC Waweru Gatonye told Nairobi Chief Magistrate Francis Andayi that the DPP has not had the chance to look at the offer made by the bank.
He said that his clients are making genuine efforts to have the matter settled with a view of making a concrete report to the court on the progress of the negotiations.
“We have no objection to the extension of time, we want to be able to report back to court on the progress made in the journey of settling this matter out of court,” the DPP said.
However, some former family bank employees objected to the talks saying that they must be included in the out -of court settlement.
Through their lawyer Wangai they told the court that they have been kept in the dark on the talks as the discussions are being held behind closed doors.
They argued that they were charged because they were working for the family bank.
They asked the court to either include them in the settlement or have the charges against them dropped.
SC Gatonye however insisted that his clients are keen to have a possible settlement as the outcome of the matter will have serious ramifications in the banking sector.
Among people charged are Operations manager Nancy Njambi, Chief executive officer Peter Munyiri , Peter Mindoro, Oscar Nyasa, Charles Kamau Thiongo, Raphael Mutinda Nduda, Meldonon Awino Onyango, Josephine Njeri Wairi, and Family Bank limited.
It’s alleged between 22 December, 2014 and 19 May 2015 at Family Bank KTDA branch abetted the offence of money laundering by engaging in transactions in account number 065000007847 belonging to Josephine Kabura Irungu carrying on business under the business name Reinforced Concrete Technologies held at Family Bank Limited KTDA branch, Nairobi for Kshs 320.160.000 whose effect was to diminish the said sum of money which was acquired directly as a result of the offence.
The accused is said to have failed to comply with the reporting obligations by failing to report unusual transactions relating to an account belonging to Kabura.Kingo’ri was also charged with abetting money laundering contrary to the law on similar dates and place.
He is said to have abetted the offence of money laundering to Kabura for Sh 320,160,000 whose effect was to diminish the said sum of money which was acquired directly as a result of the commission of the offence.
