Sh1.2B Fraud Earns Former NSSF Manager Sh2.6B Fine or 14 Years in Jail

February 1, 2022
Former NSSF investment manager Francis Moturi and Discount Securities LTD director David Githaiga at Milimani Law Courts on January 31, 2022. Photo courtesy/Douglas

The highly anticipated sentencing for former NSSF investment manager Francis Moturi was delivered Monday at Milimani Law Courts in Nairobi.

Last Friday, Moturi was found guilty of defrauding NSSF Sh.1.6 billion by buying non-existent shares between August 2002 and July 2007.

Trial Magistrate Lawrence Mugambi said the crime was a well-orchestrated fraud given there was misleading information sent to NSSF under the hands of the accused persons that led to the loss of the monies.

Moturi’s co-accused David Githaiga Ndirangu and officials of Discount Securities Limited (DSL) including Wilfred Mungoro (Finance director) and Isaac Nyakundi were also found guilty of conspiracy to steal from NSSF through the purchase of shares.

At the same time, the Magistrate acquitted Mary Ndirangu, former internal audit manager and James Akoya former finance Manager at NSSF.

The court on Monday sentenced Francis Moturi to 14 years in prison or pay an alternative fine of Sh2.6 billion.

Magistrate Lawrence Mugambi further sentenced stockbrokers Ndirangu, Mungoro and Nyakundi to 12 years in jail. Alternatively, they can pay a fine of Sh802 million each to avoid serving tie in prison.

The court also fined DSL Sh4.8 billion as compensation to NSSF. DSL is currently under liquidation.

The magistrate directed DSL to pay the monies to the statutory manager subject to the availability of funds.

Further, the court issued an order barring the four from being elected or appointed for public office for the next 10 years.

They were given 14 days to appeal.

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