The Directorate of Criminal Investigations (DCI) banking fraud unit is investigating how Sh1.4 billion was transferred from Equity Bank Internal Salaries Remittance General Ledger and credited to other bank accounts.
While investigating claims of money laundering, the DCI arraigned John Karima Wainaina before Milimani Chief Magistrate Susan shitubi seeking to be allowed to detain him for 14 days.
The police said this would enable them complete investigations into how Sh1,499.465,831.29 was transferred from Equity Bank to non-equity accounts.
Wainaina was arrested on 9th day November 2024 at Jomo Kenyatta International Airport on his way back to Kenya from China where he had run to immediately, he learned of the ongoing investigation.
The DCI through Inspector Chrispinus Shibanda told the court that the lender informed him that between 1 June 2024 and 31 July 2024 numerous fraudulent debits transactions amounting to Sh. 1,499,465,831.29 were made from the bank’s internal Salaries Remittance General Ledger Account Number 0001***100774 and credited to several other bank accounts.
Further, 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.
“Preliminary investigation has established that among the primary beneficiary accounts were accounts opened in the name of the Respondent and or in the name of proxy companies associated with him which were credited with the stolen funds,” investigating officer told the court.
The officer further said he has information that Wainaina is a member of a larger organized group that is a well-structured group with every individual assigned his or her duties in order to facilitate the commissioning and omission of the crimes.
He said Wainaina recruits the targeted bank staff, penetrating of the bank system and identifying, recruiting both natural, artificial proxy persons whose accounts would be used to launder the proceeds of crime.
Inspector Shibanda told magistrate Shitubi that intelligent gathered information identifies Wainaina as a recruiter of the companies and or persons used as proxies or agents whose accounts were used to launder the stolen funds.
“Bank Fraud Unit needs to ascertain documentary evidence, electronic evidence. CCTV footage of different points where Wainaina is believed to have met with his recruits to plan, execute and receive the stolen funds in hard cash which shall help to further place him at the scene,” Inspector Shibanda told the court.
IP Shibanda reasonably believes that Wainaina was involved in the alleged offence and his release before obtaining documentary evidence, electronic evidence, CCTV footage and recording of witness statements may greatly jeopardize the intended recoveries and investigation being undertaken.
He urged the court to considered Wainaina as flight risk. He said he need more time to trace all the witnesses who have close social ties with Wainaina to avoid Wainaina’s influence on them.
“I believe the complexity of the matter, the investigation needs more time to track and trace other associates who are in constant communication with Wainaina,” IO told CM Shitubi.
Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on [email protected] or via Telegram
Share via: