What you need to know:
- They were charged more than a decade ago with among others offences, irregularly trading in shares through DSL, a crime they committed between 2004 and 2007.
- They committed the offences by claiming to have purchased various quantities of shares even though no shares had been purchased.
A former National Social Security Fund (NSSF) investment manager and ex-stock brokers have been found guilty of conspiracy to defraud the Fund of Sh1.4 billion more than a decade ago.
Mr Francis Zuriels Moturi (former NSSF investment manager), Mr David Ndirangu and officials of Discount Securities Ltd (DSL) including Mr Wilfred Mungoro (Finance director) and Isaac Nyakundi were found guilty of conspiracy to steal from NSSF through purchase of shares.
The court, however, acquitted Mr James Akoya, a former NSSF general manager in charge of Finance and Investments, and Ms Mary Ndirangu, the agency's former Internal Audit manager, and Orchard Estates Ltd.
The convicted four were remanded in custody until Monday January 31 for mitigation and sentencing.
Anti-corruption chief magistrate Lawrence Mugambi ruled that the prosecution proved that the four conspired with the collapsed stockbroker to steal the public funds.
They were charged more than a decade ago with among other offences, irregularly trading in shares through DSL, a crime they committed between 2004 and 2007.
Other charges include fraudulent disposal of public property, fraudulently making payment from public revenue, willful failure to comply with the applicable procedures and guidelines relating to procurement of property, fraudulent acquisition of public property, conspiracy to defraud, deceiving principal, stealing by agent and neglect of official duty.
They committed the offences by claiming to have purchased various quantities of shares even though no shares had been purchased.
The court heard that sometime in 2003, NSSF was converted from a provident fund to a pension fund, and the Board of Trustees resolved to invest in shares among other investments in order to diversify the portfolio. The managers then sought to invest in the collapsed broker, and in the process lost more than Sh1.6 billion.
Evidence presented in court showed that the accused persons would request to be paid specific amount as per the orders from NSSF in respect of the purchases.
But upon checking NSE reference numbers with information from the Central Depository and Settlement Corporation, it was discovered that there was no purchase made.
The four were remanded at Capitol Hill police station until Monday, when they will appear before court for mitigation and sentencing.
They face a hefty fine of Sh4.2 billion each as well as a mandatory sentence not exceeding ten years.