A NAIROBI court has summoned the managers at Rafiki Microfinance Bank to explain why documentation relating to a fraudulent transaction involving a company, DEVOTE LIMITED, KeNHA contracted for the roadworks on Kisumu Busia road , cannot be released to detectives.
The banking fraud Investigation Unit(BFIU) is making inquires into an alleged offence of forgery and making a false document in relation to a complaint the Kenya National Authority made in regards to the suspect firm DEVOTE LIMITED.
The suspect firm applied and was awarded a contract for road works and was required to execute a security from a reputable local bank as a regulatory guarantee and in compliance with regulations of the contracts of similar nature.
DEVOTE furnished KeNHA with a performance guarantee dated October 19 2016 purported to have originated from the financial institution for Ksh13 million.
On March 8 2018 KeNHA wrote to Rafiki bank to call up the guarantee for breach of contract with DEVOTE LIMITED but the bank refuted “existence issuance and knowledge of DEVOTE LIMITED and or the performance bond” marked as an exhibit in the case.
The prosecution said an earlier order allowing the police to access the banks records was served in June and the institution has been fully aware of the pending matters.
Rafiki Microfinance bank has failed to comply with the order, the trial court heard.
” For the purposes of an in depth inquiry and investigation it is imperative for me to have certified copies of documents , stamp impressions, sample handwriting, known signatures and statements recorded by staff to prove circumstances under which the fraudulent performance bond was processed and served to KeNHA,” Phillip Bollo told court while applying for summons against the senior manager.
Tip of the iceberg
He told a magistrate Rafiki bank had declined to comply with the court’s earlier order that allowed detectives to carry away documents for forensic analysis.
“The only way is by getting orders to disprove or prove the culpability of DEVOTE LIMITED by getting counter performance bond from Rafiki Bank, stamp impressions, handwriting from relevant officers of the bank…” the detective said.
Police had been allowed access and to obtain information and carry away documents relating to the issuance of the fake performance bond to the phantom contractor DEVOTE.
The fake document was successfully used to guarantee roadwork contracts by KeNHA and were used to dupe management into awarding the tender.
DEVOTE LIMITED directors are said to have presented the questioned document from Rafiki to KeNHA on October 19 2016 in this tip of the iceberg case.
The case will be mentioned on November 13 2018.