NSSF ‘lost Sh1.6bn in shares scandal’

Signage is installed at the NSSF building in Nairobi. Former senior National Social Security Fund managers spent over Sh1 billion belonging to the agency to buy non-existent shares from the Nairobi Stock Exchange. PHOTO | FILE

What you need to know:

  • National Social Security Fund lost Sh1.6 billion in the scheme, which also involved senior officials of Discount Securities Ltd.
  • The accused include Mr Francis Moturi Zuriels, Mr James Akoya, Mr Isaac Nyakundi Nyamongo and Ms Mary Ndirangu.
  • It is alleged that the former NSSF and DSL employees conspired to defraud the fund of the money between May 2006 and October 2008.

Former senior National Social Security Fund managers spent over Sh1 billion belonging to the agency to buy non-existent shares from the Nairobi Stock Exchange, a court has been told.

Deputy Director of Public Prosecutions Mungai Warui told Anti-Corruption Court magistrate Lawrence Mugambi that NSSF lost Sh1.6 billion in the scheme, which also involved senior officials of Discount Securities Ltd (DSL), a firm that was supposed to buy the shares on behalf of the fund.

The Ethics and Anti-Corruption Commission (EACC) deputy director, Forensic Investigations, Mr John Lolkoloi, told the court on Monday that investigators inquired from the stock exchange and established that there were instances when transaction numbers were duplicated, implying fraud.

“Our finding was that there were several instances where DSL received millions of shillings for shares that were not purchased,” said Mr Lolkoloi.

DEFRAUD NSSF

The accused include Mr Francis Moturi Zuriels (former NSSF investments manager), Mr James Akoya (former NSSF general manager, Finance and Investments), Mr Isaac Nyakundi Nyamongo (former investments manager, DSL) and Ms Mary Ndirangu (former internal audit manager, NSSF).
Others named by the prosecution are DSL and Orchard Estates Ltd.

It is alleged that the former NSSF and DSL employees conspired to defraud the fund of the money between May 2006 and October 2008.

The accused are facing separate counts under the Anti-Corruption and Economics Crimes Act.

The anti-corruption commission analysed vouchers for all payments made by NSSF to DSL and discovered that a total of Sh1,601,576,461.65 may have been misappropriated.

“In the transactions, DSL would either purchase extremely less quantities of shares for which they received payments or did not make any purchase at all,” said Mr Lolkoloi. Mr Lolkoloi resumes his testimony on November 29.