The Directorate of Criminal Investigations (DCI) is investigating a Chinese foreign national who is at the centre of a major banking fraud in Kenya that siphoned over Ksh170 billion from a construction company.
According to documents filed before the DCI Banking Fraud Unit, the suspect allegedly used falsified papers to open a fake bank account and divert funds meant for government projects.
Documents reviewed by Kenyans.co.ke show the suspect presented forged letters of authorisation and fake board resolutions, enabling him to appoint himself as a director and manipulate the company’s payment systems.
Using these documents, he opened a fake account that was reportedly used to receive money from government construction tenders. The account was different from that which was originally approved by the board.
The man's scheme came to light after a company audit revealed inconsistencies in accounts that were receiving payments from government agencies, among them the Kenya Rural Roads Authority (KeRRA).
At the same time, preliminary investigations indicate that the fraud occurred in 2020, during the height of the COVID-19 pandemic, when the company’s legitimate directors were stranded abroad and unable to travel to Kenya.
Taking advantage of their absence, the suspect allegedly activated the fake account and began diverting the millions of shillings.
A forensic audit later confirmed that the signatures used to open the account and authorise transactions did not match those of the genuine directors, with the substantial funds meant for construction projects having been misappropriated.
One of the company’s directors has since recorded a statement with the DCI denying any involvement in the fraudulent account opening and maintaining that no board meeting or internal resolution ever approved the creation of the account in question.
Additionally, he further stated that all authorised payments from government agencies were to be made through the firm’s official channels and that he only became aware of the parallel account after internal audits flagged suspicious transactions.
In his statement, he urged the DCI to take swift action, expressing concern that his identity may have been used in the fraud.
Meanwhile, the suspect has filed a counterclaim at the High Court in Nairobi, seeking compensation running into millions of shillings, where he claimed that the amount represents unpaid salary and personal funds he allegedly used to cover company expenses over several years.
Through his lawyers, the suspect argued that the company was in the process of winding up its Kenyan operations and relocating abroad, which could make recovery of his alleged dues impossible if the court does not intervene.
The case is scheduled for mention on October 29, when the court is expected to give further directions. However, orders have already been issued, freezing the disputed account.
