A former bank manager has been ordered to pay the Central Bank of Kenya (CBK) Ksh727 million for the alleged theft of Treasury bonds.
Jignesh Desai had filed an appeal seeking to halt the CBK from recovering the bonds. In his petition, he sought to bar CBK from recovering the said amount arguing that it would cause him irreparable damage.
The CBK sought Ksh727 million from Desai arguing that his petition was merely a delay tactic to prevent the bank regulator from recovering the amount.
A three-bench consisting of Justices William Ouko, Aike Makhandia and Patrick Kiage reckoned that Desai had failed to provide evidence to show that he was not part of the underhanded scheme.
Court documents revealed that the former bank manager had set up a briefcase company dealing with horticultural products dubbed Mpesha Limited alongside his associate Alex Ribero Ngugi, an ex-cashier at a local bank.
Reports indicate that Desai, the bank manager at the time, did not follow any banking rules when opening the account as the company lacked vital details such as physical address and Kenya Revenue Authority (KRA) PIN.
The account stayed dormant until six months later when a deposit of Ksh50,000 was made. Court documents detailed that large deposits worth Ksh95 million were made into the account.
Further, Treasury bonds from Mumbu Holdings valued at Ksh30 million were transferred to Mpesha ltd account. The total amount in the account accrued to Ksh205 million.
The scheme was exposed when Mumbu Holdings offered to sell their bonds only to discover that their stock had been transferred.
This led to investigators launching an investigation to which they printed an advert looking for the proprietors of Mpesha limited.
Both Ngugi and Desai were arrested and charged. Justice George Odunga ordered both suspects to pay back Ksh205 million plus interest, for the years the case dragged in court until the debt is fully settled.
