Lillian Omollo's children entangled in NYS scandal
What you need to know:
Mrs Omollo is said to have deposited cash in her accounts in batches of Sh900,000 to escape the reporting threshold.
Earlier, court documents showed that more than 115 accounts in 14 banks and Unaitas, a sacco, have been frozen over the scandal.
These include several bank accounts belonging to Mrs Omollo— including some to a company, Sahara Consultants, which is linked to her.
Investigators are looking into how former Public Service PS Lillian Omollo made cash deposits of millions of shillings in bank accounts belonging to her children in months when theft of funds were reported at the National Youth Service (NYS).
The Asset Recovery Agency (ARA) has revealed to court that millions of shillings, including a cash deposit of Sh20 million on or before April 20, were wired to the accounts registered in Mrs Omollo's children's names.
SH900,000 BATCHES
The deposits were made in a period when more than Sh1 billion was stolen from the NYS through fictitious invoices for goods such as firewood and stationery and multiple payments on one supplier invoice.
Businesspeople and dozens of senior government officials, including Mrs Omollo, were charged in May with various crimes related to the theft— marking a new effort to crack down on widespread corruption.
“All the accounts held at Diamond Trust Bank (DTB) are in names of the sons and daughters of Lilian Muthoni Mbogo,” said ARA in court documents where it is pushing for a freeze of the accounts.
“That on or about 20th day of April 2018 … the accounts received Sh20 million suspected to be proceeds or crime or money laundering from the NYS.”
The revelation comes days after the Central Bank of Kenya fined Standard Chartered Kenya, Equity, DTB, Co-operative Bank and KCB Group Sh392.5 million for failing to report suspicious transactions in connection with the theft of funds at NYS.
The banks had received a total of more than Sh3 billion from the NYS on behalf of their customers, the CBK said.
The law requires all financial institutions— including banks, insurance companies and saccos— to file with the Financial Reporting Centre daily reports on transactions above Sh1 million and those deemed suspect.
Mrs Omollo is said to have deposited cash in her accounts in batches of Sh900,000 to escape the reporting threshold.
Earlier, court documents showed that more than 115 accounts in 14 banks and Unaitas, a sacco, have been frozen over the scandal.
These include several bank accounts belonging to Mrs Omollo— including some to a company, Sahara Consultants, which is linked to her.
“On analysing the accounts, it is clear that the monies were deposited in cash, raising suspicion of possible money laundering and proceeds of crime,” ARA told the court last week.
The PS has not yet filed her affidavit.
