October 6, 2015
THERE are new claims that powerful individuals doctored the final report prepared by the Directorate of Criminal Investigations in the probe into the Sh791 million fraud at the NYS.
Some crucial names were deliberately removed from the initial list of key suspects, according to reliable sources both at the DCI and the Devolution and Planning ministry.
Also deleted was crucial information that had been obtained from Family Bank, where huge deposits and withdrawals of cash diverted from NYS coffers had been made.
According to insiders, a top CID officer demanded the file when it emerged some powerful individuals in government were being implicated in the fraud.
The investigations were being conducted by a 12-member team, but the matter was taken over by higher powers when investigations were 95 percent complete.
Contacted yesterday, DCI boss Ndegwa Muhoro said he was in a meeting and promised to call back.
Already, Director of Public Prosecutions Keriako Tobiko has questioned why a number of witnesses were not interrogated and statements recorded.
He questioned why the DCI did not record any statement from the Financial Reporting Centre (FRC) and the Central Bank of Kenya.
This is after it emerged that huge deposits were made to and withdrawals made from accounts held by individuals and companies at Family Bank KTDZ branch.
Insiders have now told the Star that that the DCI team initially handling the investigations â€œdid a thorough jobâ€, including sourcing information from the Central Bank of Kenya and Family Bank.
The officers, according to insiders, were pursuing the angle of a possible offence under the Proceeds of Crime and Anti-Money Laundering Act as well as the Prevention of Organized Crimes Act.
The details were however left out in the final report that was handed to the DPP. â€œThey were warned that anyone who will question anything will be transferred to Lokichar in Turkana,â€ said a source yesterday.
The Star established the scheme to water down the report involved a top CID officer, a senior official working in the ministry of Devolution and not a member of the Cabinet, and another senior official at the NYS.
Also involved is a prominent wheeler dealer who was linked to mega corruption scandals that shook the governments of both former Presidents Daniel Moi and Mwai Kibaki.
Sources also told the Star that an ex-government official who wielded immense power during Kibakiâ€™s government and served for some months during the Uhuru government is also involved.