Former NSSF manager Francis Moturi has been slapped with a fine of Ksh.2.4 billion or serve 12 years in jail after he was found guilty of involvement in a Ksh.1.6 billion fraud case.
Moturi was last week found guilty of knowingly misleading the fund into making payments totalling Ksh.1.2 billion through irregular trading in shares through Discount Securities Limited.
The former NSSF manager was convicted alongside officials of Discount Securities Ltd (DSL) Isack Nyakundi, Wilfred Munyoro and David Githaiga. Also convicted is Discount Securities Limited.
Trial Magistrate Lawrence Mugambi fined the three former DSL employees Ksh.803 million each or serve 12 years in jail.
Discount Securities Limited was directed to pay a fine of Ksh.4 billion failure to which its assets be auctioned.
The convicts are accused of defrauding NSSF Ksh.1.6 billion by buying non-existent shares between August 2002 and July 2007.
The court noted that even after the payments were done, Moturi never bothered to counter check the claims adding that the loss went on for a period of four years and was only known after he was replaced.
It was also the court’s finding that Isaac Nyakundi was aware and had knowledge of what was going on, thus concluding that the irregularities were not coincidental but intentional.
Trial Magistrate Lawrence Mugambi also noted that David Murungu Githaiga, Wilfred Munyoro Weru, Isaac Nyakundi, sent false information to NSSF and NSSF acted on the information, leading to loss of the monies.