Bank seeks to settle NYS case out of court

Tuesday September 12 2017

Family Bank Chief Executive Officer David Thuku

Family Bank Chief Executive Officer David Thuku speaks during the release of the bank’s financial results at Hilton Hotel, Nairobi, on March 29, 2017. The bank's former employees involved in a criminal case want the matter settled out of court. PHOTO | SALATON NJAU | NATION MEDIA GROUP 

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Family Bank is seeking to settle out of court the Sh791 million case against its eight senior managers and involving National Youth Service scam prime suspect Josephine Kabura.

Defence lawyers Waweru Gatonye and Cecil Miller told Chief Magistrate Francis Andayi they have raised the out of court settlement proposal with the Director of Public Prosecutions (DPP).

“We have initiated talks with the DPP to explore an out of court settlement,” Mr Gatonye said.

Mr Gatonye told the court that the bank has also filed an application in the Court of Appeal to have the criminal case quashed, saying it amounts to double punishment to the bank since it has been punished for the alleged breaches by being blacklisted by Central Bank of Kenya (CBK).

The lawyers told the court that the case in the Court of Appeal was listed for hearing on October 17, 2017 but the date has been slotted for the presidential election repeat.

“I wrote to the deputy registrar of the Court of Appeal asking for another date on a priority basis,” Mr Miller said.

Mr Gatonye said that CBK has already punished Family Bank and prosecuting it and its officers amounts to double punishment.

“We request that the Court of Appeal be given time to determine the application by Family Bank before this case proceeds,” Mr Gatonye said.

He asked for an adjournment for three months to await Court of Appeal decision.

State prosecutor Victor Mule said he was aware of the Court of Appeal matter but not aware the “out of court settlement” proposal to DPP.

In the case, the former staff: Peter Munyiri (chief executive), Robert Nyagah (senior branch manager), Charles Thiongo, Raphael Ndunda, Nancy Njambi, Meldon Awino and Josephine Njeri are charged with failing to report unusual transactions relating to Ms Kabura’s account, which carried out business in the name of Reinforced Concrete Technologies at Family Bank KTDA branch, Nairobi, between December 22, 2014 and May 19, 2015.

The case has been rescheduled for hearing on December 4.