What you need to know:
- In the case, police say lawyer Esther Bitutu Kadiki fraudulently siphoned Sh1.5 billion from Equity Bank between May 1, 2024, and July 31, 2024.
Details of an elaborate scheme targeting banks — through which Equity Bank lost Sh1.5 billion in just 90 days — have been exposed in a court case that also reveals how a convoluted trail was created to conceal the illicit source of funds, and how individuals and companies were used as proxies to execute the theft.
In the case, police say lawyer Esther Bitutu Kadiki fraudulently siphoned Sh1,499,465,831 from Equity Bank between May 1, 2024, and July 31, 2024.
“The money was made from the bank’s internal Salaries Remittance General Ledger Account Number 0001*100774** and credited to several non-Equity Bank (Kenya) Limited accounts and in all instances, fictitious narrations regarding the actual source of funds were made in the bank’s systems in order to conceal or disguise the nature, source, location, disposition or movement of such funds,” the police say in their case against Ms Bitutu.
According to an affidavit sworn by Inspector Chrispinus Sore Shibanda, a police officer attached to the Directorate of Criminal Investigations, Banking Fraud Investigations Unit, Ms Bitutu ran an intricate system, including use of crypto currencies, bulk withdrawals and transfers to other banks to get the Sh1.4 billion out of Equity.
“Towards creating a convoluted trail to mask the illicit source of the funds, such unlawfully credited amounts were subsequently layered by the first-tier beneficiaries through several means or layers of intricate financial transactions including bulk withdrawals, transfers to other bank accounts and purchase of crypto currencies,” court papers show.
Part of larger group
The prosecution argued that siphoning the stolen funds was only the last part of an intricate plan, which starts with the recruitment of those to execute the scheme, beginning with a recruitment process that Ms Bitutu ran.
“The respondent (Ms Bitutu) is a member of a larger organised group that is well-structured with every individual assigned his or her duties in order to facilitate the commissioning and omission of the crimes starting from recruitment of the targeted bank staff, penetrating of the bank system and identifying, recruiting both natural, artificial proxy persons and or companies whose accounts would be used to launder the proceeds of crime,” Mr Shibanda, the investigating officer in the case, says in what could blow wide open tricks used by bank fraudsters.
The police say that Ms Bitutu is an “integral player in the planning and execution of the fraudulent activities”.
“These fraudulent activities benefitted her directly…in that she acted as a recruiter of the companies and or persons used as proxies/agents whose accounts were used to launder the stolen funds; she played part in drafting business transaction agreements between companies on non-existing business activities which agreements were used to explain the source and or for the justification of the large cash withdrawals from the benefiting accounts,” Mr Shibanda told Milimani Chief Magistrate Onyina.
The investigating officer told the court that despite Ms Bitutu having been involved in the drafting of the fictitious business agreements between companies, she has been unwilling to provide information regarding the real faces behind the said agreements, arguing that she did not meet the individuals.
“As an advocate of the High court of Kenya, such narrative can only be better understood to mean she is protecting those people. In so doing, her freedom shall continue to jeopardize the yet to be concluded investigations,” the investigating officer said in court papers.
Ms Bitutu was arrested on May 5 when she presented herself to the Banking Fraud Investigation Office following October 2024 summons.
The investigating officer said an analysis of the bank transactions in accounts owned by Ms Bitutu showed that Sh38 million was deposited to NCBA and National Bank accounts, registered under Inforide Point Limited, a company she co-owns with her husband, and Kadiki & Advocates, an account Ms Bitutu solely owns, respectively.
The police also told the court that during interrogation, Ms Bitutu provided agreement between her companies and eight others which have been associated with the transfer of over Sh400 million.
Ms Bitutu appeared before Milimani chief magistrate Onyina and was remanded until May 7, 2025 when the court will determine whether he will release on bond or not.
The police want her remanded for 21 days pending conclusion of investigations.
Defence lawyer Ken Echesa applied to have the advocate be admitted to bail saying she is not a flight risk and that she will turn up to face justice.
The court heard Ms Kadiki has a young child and is expectant.
The prosecution opposed her release on bond saying she had declined to comply with police summons since October 2024.
Ms Bitutu will know on Wednesday May 7 whether she will be released on bond or not.
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