NIC faces private trial in betting cash row

Former Kisumu Town MP Kennedy Nyagudi has issued notice to Director of Public Prosecutions (DPP) of his intention to privately prosecute NIC Bank over the lender’s refusal to reveal details of a gambling firm accused of embezzling millions in aid funds.

Mr Nyagudi says the bank has defied a court order granted to the Banking Fraud Investigations Unit to offer account details of Amaya Gaming Group, where the former lawmaker has a 15 per cent stake.

The politician has sued NIC Bank and gaming firm’s officials, David Baazov, Daniel Sebag and Benjamin Ahdoot, accusing the lender of helping the Canadians to open accounts that were used to siphon Sh73 million meant for aid and his share of Sh600 million collected by the lottery.

He wants to privately prosecute NIC Bank for defying the court order on account documents, saying other agencies have failed to take action on the lender.

The documents include a copy obtained by NIC showing the local directors of Amaya, copies of photos and IDs of the directors, bank account statements from 2010 and 2018, minutes and resolutions of Amaya on the bank account signatories and authority from the company to appoint the lender as their banker.

“I kindly request that you grant me the approval to commence private prosecution in order to hold NIC Bank into account,” says Mr Nyagudi via a letter to the DPP, Noordin M. Haji.

“This notice is as a result of persistent and deliberate refusal by the NIC Bank to produce documents as requested for five years and as ordered by the court three months ago.”

One can push for private prosecution if they show failure by agencies responsible for prosecution.

Mr Nyagudi in court documents claims that Mr Baazov, Mr Sebag and Mr Ahdoot secretly opened bank accounts at NIC, which were used to channel money earned from Amaya’s operations out of the country and away from the charity of Lion’s Heart—which was to receive 25 per cent of the lottery earnings.

The former MP holds that only he and Mr Baazov are listed as directors of Amaya Gaming Group Kenya, hence only the two of them had authority to open bank accounts.

He adds that the NIC opened Amaya bank accounts using fraudulent documents despite knowing that the other individuals granted access to the accounts did not have the authority.

Mr Baazov is fighting charges of insider trading in Canada.

NIC Bank is opposed to the banking fraud pursuing investigations over the Amaya bank accounts.