Ex-NSSF manager fined Sh2.6bn or 14 years in jail over fraud

A former investment manager with the National Social Security Fund, Francis Moturi, has been found guilty of fraud and slapped with Sh2.6 billion fine or 14 years in prison.

Moturi had been convicted for defrauding NSSF Sh1.2 billion through a collapsed stockbroker in 2008.

The pensioners fund is said to have lost an estimated Sh5.5 billion as a result of the fraudulent acts.

While sentencing Moturi, anti-corruption court magistrate Lawrence Mugambi said NSSF lost Sh1.2 billion and Moturi is liable to pay fine for it.

“Although it is not evident or not demonstrated that Motrui received a quantifiable benefit, it was crystal clear that through his actions, NSSF lost Sh1.2 billion. In this case therefore Moturi is liable to a fine of Sh2.6 billion in default 9 years (for one charge) as spelt out under section 48 of ACECA,” Mugambi said.

Moturi was accused of scheming to steal from the workers’ fund through the purchase of shares. NSSF lost the Sh1.2 billion out of undelivered shares that were to have been delivered between 2004 and 2007.

Mugambi said Moturi, who faced a charge of conspiracy to defraud and deceiving, was aware of his criminal intention and enabled the stock brokers to execute the crime through his actions of deceiving NSSF.

The court said he acted in a fraudulent manner instead of assisting his employer NSSF from making fraudulent payments.

Mugambi concurred with the prosecution that the offence calls for a stiffer sentence, adding that Moturi abused a position of trust and authority bestowed on him.

The other convicts David Githaiga, Wilfred Weru and Isaac Nyamongo who are officials of Discount Securities Limited, were each fined Sh802 million in default serve 12 years behind bars.

At the same time, DSL was fined Sh4.8 billion. The court said the firm which is under liquidation, will pay the monies through the statutory manager subject to availability of funds acquired through the sale of its assets.The defence counsels led by lawyer Assa Nyakundi had argued that there was no evidence to show the convicts benefited from the proceeds of crime.However, Mugambi said, “it should be remembered DSL a company could not be operated without intervention of human beings who are the accused persons. They directly aided it to the commission of those crimes. They individually authored and signed false letters confirming shares they bought whereas they knew it was false.”Mugambi held that there was commitment demonstrated through their actions to defraud NSSF through […]

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