NYS Scam: Kenyans have been asking for action to be taken against banks and bank officials who may have colluded to facilitate the transaction of some Sh. 9 billion that was reportedly embezzled from the National Youth Service (NYS).
Now any bank official or Central Bank (CBK) staff who abetted irregular payments in the Sh. 9 billion NYS scam will be punished. This has been revealed by the CBK Governor Patrick Njoroge.
He said CBK was working with other agencies, including the Directorate of Criminal Investigations, to unmask the alleged theft and all those involved would face the law.
“Banks have no excuses because they know the law,” the governor said.”Banks have no excuses because they know the law,” Governor Njoroge said. “These investigations are in high gear,” said Dr Njoroge, adding: “The CBK is working closely with Director of Criminal Investigations (DCI) and other investigating agencies on this case. We are really embedded in that investigative environment.”
It is however not clear which banks took part in the scandalous NYS cash payments that have further grown the dragon of corruption in Kenya.
But Governor Njoroge said the investigations are anchored on a number of legislative guidelines including laws on money laundering, combating of financing of terrorism laws, and proceeds of crime and the Banking Act.
He said the investigations involve on-site and off-site surveillance of bank operations to trace how the money was transferred.
“We do target inspections based on the specific information that we may have from other regulators in particular the Financial Reporting Centre or other things that may come to our attention in various ways,” Njoroge said.
