Family Bank has approached the DPP to settle the Ksh790 million against its eight senior managers relating to alleged money laundering and involving the prime suspect in the NYS scam , Josephine Kabura, a trial court has been told.
Defence lawyers Waweru Gatonye and Cecil Miller told chief magistrate Francis Andayi that they have raised a proposal for an out of court settlement.
“We have initiated talks with the DPP to explore an out of court settlement which may bring the matter to an end…” Gatonye said.
Approaching the DPP
Besides approaching the DPP, Gatonye also said the bank has filed an application in the court of appeal to have the criminal case quashed saying it amounts to double jeopardy to the bank since it has been punished for the all edged breaches by being black listed by the CBK.
Gatonye and Miller told the court that the case at appeal court was listed for hearing on October 17 2017 but the date has since been slotted of for the repeat presidential election pitting Uhuru Kenyatta and NASA principal Raila Odinga.
“I wrote to the deputy registrar of the court of appeal asking for another date on priority basis since the earlier date,” Miller said.
Gatonye said that the regulator, Central Bank of Kenya , has already meted apt punishment to Family Bank and prosecuting it and its officers amounts to double jeopardy.
He said under Article 50 of the constitution which prospects rights against double jeopardy the court of appeal would cure this and the present case may fall by the wayside.
“We request that the Court of Appeal be given time to hear and determine the application by Family Bank before this case proceeds,” Gatonye said.
He then asked the court to adjourn the case for a period of three months to enable the determination of the appeal.
State prosecutor Victor Mule said he was aware of the high court and court of appeal matters but he is not aware that the DPP has been approached for the “out for court settlement” proposal.
Mule said he was ready to proceed with the hearing and two witnesses were already present in court.
Abetting money laundering
In the case Peter Munyiri (CEO), Robert Oscar Nyagah (Senior Branch Manager), Charles Kamau Thiongo, Raphael Mutinda Ndunda, Nancy Njambi, Meldon Awino and Josephine Njeri( all being anti-money laundering managers) are charged with failing to report suspicion and unusual transaction relating to Josephine Kabura account 065000007847 which carried out business under the name Reinforced Concrete Technologies at Family Bank KTDA branch, Nairobi.
The alleged transitions were carried out between December 22 1014 and May 19 2015.
They are also charged with abetting money laundering in contravention of the proceeds of crime and anti money laundering act.
They face nine counts of abetting money laundering and failure to report suspicious bank transactions by Kabura, charges they deny.
The charges state that they they helped Kabura transact a total of over Ksh790 million which had been acquired directly as a result of crime involving the suspect companies,Reinforced Concrete Technologies, Roof and All Trading and Form Home Builders which were adversely mentioned in the NYS scam.
Andayi adjourned the case saying he was involved in a two day workshop for review of criminal laws in the country and observed that there was no stay order a barring the trial to proceed as yet.
He also said in the meantime the appellants may proceed to the Court of Appeal to prosecute their application and set tentative dates for hearing on December 4, 5 and 7 2017.
The suspects bonds were extended.