Kuscco officials charged with stealing Sh82.8 million
Top officials of KUSCCO from right George Ochola ,David Magutu Mwangi ,Jackline Atieno Omolo (advocate) and Mercy Muthoni Njeru at the Milimani law courts on February 13, 2025 over theft of Sh82.8m.
What you need to know:
- Ms Jackline Atieno Omolo was jointly charged with Kuscco Managing Director David Magutu Mwangi, George Ochola Owino, and Mercy Muthoni Njeru before Milimani Senior Principal Magistrate Dolphina Alego.
- They denied nine counts, including conspiracy to commit a felony, stealing, uttering false documents, and money laundering.
An advocate and top officials of the Kenya Union of Savings and Credit Cooperative(Kuscco) have been charged with stealing Sh82.8 million from the lender.
Ms Jackline Atieno Omolo was jointly charged with Kuscco Managing Director David Magutu Mwangi, George Ochola Owino, and Mercy Muthoni Njeru before Milimani Senior Principal Magistrate Dolphina Alego.
They denied nine counts, including conspiracy to commit a felony, stealing, uttering false documents, and money laundering.
The four were accused of conspiring to steal by diverting a total of Sh82,826,000—property of Kuscco —for the purchase of land LR23269/35 in Nairobi, on diverse dates between October 2022 and April 2022, along with others not before the court.
They also faced charges of money laundering contrary to Section (3)(b)(i) as read in Section 16 of the Proceeds of Crime and Anti-Money Laundering Act.
According to the prosecution, led by State Counsel James Gachoka, between October 9, 2020, and April 30, 2022, the accused, with intent to dispose of funds, knowingly or while reasonably expected to have known that the money was proceeds of crime, agreed to the sale of the land.
The agreement was allegedly used to conceal the nature and source of the funds in accounts held at Kenya Commercial Bank (KCB) and M Oriental Bank under the account name Jackline P.A Omolo & Advocates.
The court heard that the accused had reason to believe that the said funds were proceeds of crime.
In a separate charge, they were accused of stealing as directors and officers of a company and making false documents, contrary to the law.
They denied making and uttering an agreement for the sale of land LR 23269/35 to make it appear authentic, knowing the document was false.
Additionally, at an unspecified time but within the same period, Ms Omolo allegedly presented a forged sale agreement for land LR 23269/35 to KCB Bank University Way Branch, purporting it to be genuine and belonging to Catherine Wanjiku Mbugua.
The accused denied all charges brought against them. The prosecution did not oppose their release on bond.
Defence lawyers, led by Caesar Wanjau, Okore Jayalo, and Otieno Mugla, pleaded with the court to grant lenient bail terms, citing the time elapsed since the alleged offense and their clients' cooperation with investigators.
"Your Honour, I pray for leniency. Consider the period when the alleged offence took place and the fact that the accused have been cooperative during the probe," Mr Wanjau pleaded.
Otieno Mugla, representing Ms Omolo, argued that she was caught in the crossfire and had no involvement in the alleged fraud. He urged the court to grant her favourable bond terms, emphasizing that she merely prepared the sale agreement for the disputed land.
The magistrate reserved her ruling and directed that the accused be remanded at Muthaiga Police Station for five days while she prepared her bond.
Additionally, the magistrate summoned George Otieno Ototo, who failed to appear in court, to present himself on February 18, 2025, to plead to the charges against him.