The DCI has opened investigations against National Bank’s managers Reuben Koech, Wilfred Musau, Jeremiah Kendagor and sacked Christopher muiga for alleged bond trading theft.
The officials have been accussed of using brokerage firms to undercut the bank and its customers on retired treasury bonds for own gain.
Chris Muiga who first got into the limelight after the exit of Solomon Alubala from NBK. After becoming the head of treasury, Muiga who had promised to feed one Reuben Koech and Wilfred Musau made good on his promise and swindled money from retired treasury bonds which they all shared.
Soon after, Chris would stop sharing this fraud money making the culprits angry and leading to his dismissal. A replacement for Chris was immediately found. One Jeremiah Kendagor. The Kalenjin man will be the new face used to swindle some more money for Wilfred and Koech.
Through undervaluation, the officials, using brokerage firms managed to steal gradually as shown below:
- Jan-2019 – KSH 12,617,000
- Feb-2019 – KSH 19,827,000
- Mar-2019 – KSH 53,277,000
- Apr-2019 – KSH 89,220,000
- May-2019 – KSH 93,991,000
- Jun-2019 – KSH 112,739,000
- TOTAL – KSH 356,439,000
Just recently, Mr Dunkun Okun NBKs chief risk officer resigned on grounds of his prudent principles, further confirming illegal bond trading by Jeremiah and Koech. The officials use brokerage firms to undercut the bank and its customers on retired treasury bonds for own gain.
In one similar fraud case, Meru farmers came to the lender for with a Ksh1 billion loan application to build a mall. Duncan highly opposed the approval of this loan when it was brought to the board on the basis of its demerits, Joseph Kering and Koech would then approve Ksh250 million for the same since that amount did not need the full board approval because they had already pocketed bribes.
The officials have apparently advanced similar loans to a bunch of other companies which have never initiated payments. The officials are accused of successfully on-boarding two unsustainable projectsfrom Suraya LTD by issuing a 5 year bank guarantee to an Off-shore bank and classified the debt as an “OFF-BALANCE SHEET ITEM” which did not require provisions according to CBK prudential guidelines.
On 10th september DCI Kenya launched an investigation over the same and sent a team to NBK. Auditors have aso been dispatched to try and bring the fraudsters to justice.
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