Ex-NSSF boss testifies in Sh1.6b fraud case

By John Muthoni?

Kenya; A former National Social Security Fund Managing Trustee has been summoned to appear before a magistrate’s court over a Sh1.6 billion fraud case.

Rachel Lumbasyo is required to testify in a fraud case against seven NSSF officers.

The seven are accused of fraudulently making payments of Sh1, 60,576,461.65 to Discount Securities Limited (DSL) from public revenue.

Francis Mutori, James Akoya, David Githaiga, Wilfred Munyoro, Isaac Nyamongo and Mary Ndirangu allegedly disposed of NSSF shares purporting them to have been bought and delivered to the fund between August 24, 2004 and July 20 2007.

Share purchase

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Naftali Mogere, NSSF’s Managing Trustee between 2002 and December 2005, told Nairobi Chief Magistrate Doreen Mulekyo that the   process of identifying DSL as their actor in buying shares was in line with the retirement body’s act.

“According to the NSSF Act, we were allowed to act with stock brokers when buying shares from different places,” Mr Mugere said.

He said DSL had been approved by the board of trustees and that Mr Mutori, the first accused, was not a member of the board, thus would not have influenced its decision.

Mr Mogere testified that the cheques that had been paid to DSL had been authorised after the process of share purchase had been verified and scrutinised by all relevant NSSF departments and the Ministry of Labour.

Mogere, who was also the NSSF CEO, said he signed letters requesting DSL to buy NSSF shares.

He said he had done so with recommendation of the investment department of the institution. The hearing continues on December 6.