The Directorate of Criminal Investigations has recommended for the prosecution of 17 individuals and companies over the some Sh. 449 million fraud from CBA Bank. According to a report that appeared in Friday’s Business Daily, the seventeen forged land documents to secure five loans worth Sh.449 million from CBA Bank.
Those in the Directorate of Criminal Investigations list include Edna Khaemba, a senior State counsel, lawyers George Kithi, and Gladys Mboya and Lloyd Masika, a real estate valuer, while Mboya Wangong’u and Waiyaki Advocates, Khaemba and Khaemba Advocates and Kithi & Company Advocates make the list of the accused law firms.
“It is evident that the directors of Ndonga Limited, Wardpa Holdings Limited and Kinjune Garden Limited, Commercial Bank of Africa Limited officials, M/s Khaemba and Advocates, the external advocates of CBA and the external valuers of CBA conspired to defraud Commercial Bank of Africa Sh449, 051,999 using forged documents,” the DCI says in the recommendation signed by Nairobi County Criminal Investigations officer Nicholas Kamwende and seen by the daily.
The daily further reports:
“The Directorate of Criminal Investigations says Ms Khaemba was at the centre of the transaction having made the bank to believe that the deal was clean until February 2016 when one of the lenders advertised plans to auction the property in their custody. CBA, upon investigations, found that the Kangethes had used fake documents to secure the loan, helped by Mr Warui, the relationship manager who introduced them as clean clients and Edna’s law firm Khaemba and Khaemba Advocates.
The company at the centre of the forgery scam had proposed to purchase a property and gave a forged title as security. In one instance, Sh. 56 million borrowed was obtained to finance a commercial property in Nairobi’s Ngara estate, owned by a client of Khaemba and Khaemba Advocates. The security was approved by Tysons Limited, CBA’s external valuer and searches at Ministry of lands was handled by Mboya, Wangong’u and Waiyaki Advocates.
Directorate of Criminal Investigations found that all these were falsified and that the RTGS Transfer document for stamp duty made from Bank of Baroda by Khaemba and Khaemba Advocates was a forgery. A further loan of Sh.28.8 million was advanced after the Kangethes presented a forged document and the process handled by Mr Warui, the relationship manager.
It was validated by the CBA’s external valuers Llyod Masika, Tysons Limited, Mureithi Limited and external law firms of Mboya Wangong’u and Waiyaki Advocates. The racket allegedly further managed to secure a further two loans, of Sh.100 million and Sh.160 million, when a newspaper advert accidentally exposed the well-planned scheme. The Directorate of Criminal Investigations report indicates that Land ministry officials have disowned the signatures on all the documents, claiming they were forged.”
