The Director of Public Prosecutions (DPP) has ordered the banking sector regulator, criminal investigations department and the spy agency to probe 10 banks that handled millions of shillings that were syphoned out of the National Youth Service (NYS) and the Sh1.5 billion proceeds of Ruaraka land compensation.
Noordin Haji, the DPP, told Parliament that a team comprising officials from the Central Bank of Kenya (CBK), the Directorate of Criminal Investigations (DCI) and the National Intelligence Service (NIS) has been put together to probe and track Sh250 million that was withdrawn within three days from a bank that transacted part of the Sh1.5 billion Ruaraka land sale.
He said the team will also investigate how Sh100 million was withdrawn within two days on the Sh8 billion NYS scandal.
“It is alarming that banks seem to be colluding with corrupt individuals and that a huge sum of money is being withdrawn without being brought to the attention of relevant agencies,” he said.
On the Ruaraka case, Sh250 million was withdrawn from the banks in three days while in the second NYS case, Sh100 million was withdrawn in two days,” he told the Senate Committee on Justice, Legal Affairs and Human Rights.
The committee chaired by Nandi Senator Samsom Cherargei had summoned Mr Haji to provide a status of the ongoing investigations into corruption scandals including the Ruaraka land, NYS, National Cereals and Produce Board, Youth Enterprise Fund, Kenya Pipeline Company and Kenya Power.
Mr Haji said a team has been set up that brings together CBK, DCI and NIS to trace the huge individual withdrawals.
Meru Senator Mithika Linturi, however, sought to know if the DPP is investigating banks for failure to report huge withdrawals or allowing customers to withdraw huge amounts of money without question.