Firms in NYS scam want freeze on accounts lifted

Proprietors of companies being probed after the National Youth Service lost Sh800 million have asked the High Court to lift a freeze on their accounts.

Josephine Kabura, Peter Omari and Caroline Njambi, who claim to own the six companies in the suit, claim that the freeze orders obtained by Banking Fraud Investigation Unit (BFIU) detectives were through deceit and meant to intimidate them into admitting to the fraud allegations.

The three moved to the magistrate’s court on Monday and placed evidence that the monies related to the NYS scam were wired to 20 separate bank accounts.

But the three proprietors, through lawyer Joseph Wagara, claim that the frozen accounts have no relation to the Integrated Financial Management System (IFMIS) hacking saga.

“The orders to freeze the accounts were obtained through false allegations that the money was allegedly paid to those accounts,” Justice Joseph Onguto was told yesterday.

Ms Kabura, according to court documents, owns Form Home Builders and Reinforced Concrete Technology and Roof companies.

Mr Omari on the other hand, owns Gurumum Company and jointly holds rights with Ms Njambi to Tegmen Trading and Draco Capitol companies.

They are also seeking orders to stop the Directorate of Criminal Investigations (DCI) and Banking Fraud officials from investigating them.

In the urgent application, they allege that their constitutional rights had been infringed on by having investigators trail their activities.

In the suit filed against Attorney General Githu Muigai, Director of Public Prosecutions Keriako Tobiko and DCI boss Ndegwa Muhoro, the three alleged that on July 20, they were arrested by the officers from BFIU on the grounds that they had fraudulently acquired money paid to them.

The three insist they have made statements and given all documents supporting the fact that no theft or fraudulent transaction has ever occurred in their accounts.

In the lower court, the fraud unit had indicated that it required time to investigate the scam.

The scandal first came to light in June after it was discovered that about Sh800 million had been irregularly transferred from NYS accounts.

The banking fraud unit has already flagged five accounts at Kenya Commercial Bank (KCB), four at Barclays and two at Standard Chartered. Other accounts are in Prime Bank, Paramount Universal Bank, Family Bank, Commercial Bank of Africa, K-Rep and Diamond Trust Bank.

Justice Onguto certified the case as urgent and ordered respondents be served and appear before him on Monday.