A Nairobi Court has directed the Investigating Officer in a case where Stanbic Bank Kenya Limited is being investigated over alleged offence banking fraud to collect investigation documents from the Bank management and appear in Court on June 24, 2024, to confirm receipt of all necessary investigation documents from the Bank.
In the case, Stanbic Bank is being investigated into an offence of fraudulent false accounting Contrary to section 330(b) of the Penal Code by staff of the Bank in the account of Air Afrik Aviation Limited account domiciled at the said Bank.
As a result a case was filed in a Nairobi Court seeking that Stanbic Bank provide the account opening documents and all the relevant information for scrutiny.
Orders compelling the Bank to provide the said documents and information were issued on April 17, 2024,however, the Bank management failed to adhere to the orders.
“An order be and is hereby issued compelling you to nominate authorized person to make and hand over to CI Caroline Omwoyo an Investigator with Banking Fraud Investigation Unit of Directorate of Criminal Investigations, a certificate of production of electronic evidence…” directed Hon. Benard Ochoi.
The Bank would later respond via email on April 29 saying the requested documents were not in their custody.
the proceedings herein relate to the transactions surrounding a credit advice which was issued on 5th February 2016 by the BANK OF SOUTH SUDAN , Bank of South Sudan to STANBIC BANK KENYA LIMITED advising that the Bank’s clearing and settlement account at the BANK OF SOUTH SUDAN had been credited with the sum of USD 7,224,000.00 on account of AIR AFRlK AVIATION LIMITED.
The said Credit Advice was indicated to be in relation to payment due to AIR AFRlK AVIATION LIMITED from the Ministry of Finance and Economic Planning Juba.
On 8th February, 2016, in good faith and in the belief that the said credit advice note represented good value and that actual funds had been remitted by the BANK OF SOUTH SUDAN to the STANBIC BANK KENYA LIMITED offshore USD Nostro account in terms of the said Credit Advice note, STANBIC BANK KENYA LIMITED credited the AIR AFRlK AVIATION LIMITED account with USD 7, 224, 000.00.
At that point, STANBIC BANK KENYA LIMITED had no reason to suspect or believe that the credit advice was not backed by actual funds.
