Former Britam managers’ accounts frozen

What you need to know:

  • Britam accuses the employees of using their positions to syphon off Sh4 billion.
  • The dispute between Britam and its former top managers is a rare breach of trust suit in banking and investment.

The accounts of former managers of British-American Investment Company (Britam) have been frozen following claims that they fraudulently transferred Sh4 billion to their private accounts.

Britam accuses the employees of using their positions to syphon off the money from the company and forming rival companies dealing in similar services.

Mr Justice David Onyancha ruled that pending the determination of the suit by British-American Asset Managers Limited and Baam Advisory LLP, no money should be withdrawn from the four former managers’ accounts or their private company accounts.

The dispute between Britam and its former top managers is a rare breach of trust suit in banking and investment.

The judge also put a caveat on several properties registered in the private companies’ names, ruling that they should not be disposed of, leased or mortgaged until the case is concluded.

The properties include prime parcels of land in Nairobi and Machakos counties.

FORMED RIVAL COMPANIES

The company said the former managers fraudulently syphoned off Sh3,944,558,634 and formed rival companies where they channelled the money.

Those sued and whose account were frozen are the firm’s former managing director, Mr Edwin Dayan Dande, Ms Elizabeth Nailantei Nkukuu, Ms Patricia Njeri Wanjama and Mr Shiv Arora.

Their companies, whose accounts were also frozen, are Cytonn Investment Limited, Acorn Properties Limited, Edenvale Developments LLP, Starling Park Properties LLP, Crimson Court Development LLP, Sinopia Properties LLP, Mikado Properties LLP, Crescent LLP and Spring Green LLP.

Britam’s acting chief executive officer Jude Brian Oluoch said in an affidavit that the former managers hatched a conspiracy not sanctioned by the investment firm, to transfer the money to other companies in which they were directors.

Mr Oluoch stated that he first discovered the conspiracy in May when he found e-mails between Mr Dande and Ms Nkukuu to irregularly withdraw funds.

Justice Onyancha scheduled the hearing inter parte for November 12.