12:36
Big Four Agenda
Central Bank of Kenya
Cooperative Bank
David Gikaria
Gikaria
Kihika
Nairobi
Nakuru
NYS
Patrick Njoroge
Susan Kihika
Updated

CBK: Banking guidelines ignored in NYS scam

Published Tue, May 29th 2018 at 12:36, Updated May 29th 2018 at 12:42 GMT +3

NAIROBI, KENYA: Central Bank of Kenya head has blamed the theft of large amounts of public money to people not following guidelines.

Governor Patrick Njoroge said Central Bank of Kenya has developed strict guidelines on movements of large amounts of money but it seems some banks are not keen on following them leading to loss of public funds.

“We are collaborating with investigating agencies to get to the bottom of the NYS tender scam which has resulted into loss of billions of shillings, banks involved in suspect activities will be dealt with,’ he said.

He said investigations in the scandal is covering two phases to capture recipients, banks and other entities linked to the scam.

He regretted that such theft of public resources would still take place in the modern day noting its potential in eroding public trust in the financial sector.

On Sunday, a section of leaders said it is time some financial institutions were investigated and held to account.

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The MPs said there is no way abnormally large amounts of money can be deposited or withdrawn from an individual’s account without the banks asking hard questions.

Nakuru Senator Susan Kihika said it was difficult for even businesses to transact in huge amounts without being asked questions.

She wondered how corruption cartels managed to transact in hundreds of millions of shillings easily.

“These banks appear to be friends of corruption, and tough penalties must be meted against them,” said David Gikaria.

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Mr Gikaria said commercial banks found to be embedded and aiding corruption should have their licenses cancelled.

“We cannot attain the Big Four Agenda if the theft of public resources continues.

It is time serious, swift action was taken against these thieves. This time around it won’t be business as usual,” said Kihika.

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