NYS Suspects: A local businessman who is also a suspect in the scandal involving the National Youth Service was able to beat a court freeze on his bank accounts. Apparently, the businessman withdrew more than Sh. 1.5 billion that he received from the NYS before the government froze his 10 bank accounts and those belonging to his estranged wife.
A report that appears in a local daily says that court filings show that James Thuita Nderitu and firms associated with him received Sh. 1.61 billion from the NYS in the 11 months to November 2017. However, only Sh. 33.8 million was left in the Standard Chartered Bank and Equity Bank accounts on September 7, 2018, when the Assets Recovery Agency (ARA) obtained court orders to freeze the accounts.
“Mr. Nderitu and his estranged wife, Yvonne Wanjiku Ngugi, are among dozens of civil servants and business people who have been charged with loss of hundreds of millions at the NYS through fictitious invoices for goods such as firewood and stationery and multiple payments on one supplier invoice,” the report in the Busindy Daily says.
It further says that the recovery agency is targeting four property including residences in Thome, Garden estate and Runda.
“There is reasonable ground to believe that the accounts of the respondents were used as conduits of money laundering contrary to Sections 3, 4 and 7 as read together with section 16 of the Proceeds of Crime and Anti-Money Laundering Act,” the agency told the court on Friday.
The report further says:
“An investigator said in an affidavit that the banks accounts including those of Mr Nderitu’s firms — Flagstone Merchants, Excella, Firstling and Interscope — were used as conduits for money laundering.
The court filings show Firstling Supplies Limited in one day received Sh. 612 million from NYS wired in eight installments and received Sh. 876.4 million in three months.
The account now has only Sh. 6.28 million.
Flagstone Merchants received Sh. 278.6 million within eight weeks, including Sh. 235 million in a day, and only Sh. 1.2 million remains in the account.
Firstling directors are Ms Wanjiku and Mr Nderitu, who were once married but now claim to have separated. Bank accounts of Ellwyn Supplies owned by Ms Wanjiku and Flagstone, in which she is a co-director with Mr Nderitu, were frozen because they received money from Mr Nderitu who claims the cash wired to Ms Wanjiku’s accounts was for child support.
He wants the mother of his children divorced from the suit, noting that all decisions are attributable to him and that she does not participate in the running of the business since they are separated. Mr Nderitu received Sh. 110 million directly to his personal account from NYS and now has Sh. 3.1 million remaining.
In court, Mr Nderitu and Ms Wanjiku face charges of fraudulently receiving millions for goods not supplied.”