Former NSSF manager to pay Ksh2.6b fine or 14 years in jail for fraud

A former National Social Security Fund (NSSF) manager and three others will pay Ksh10 billion fine or serve 26 years in jail after the High Court upheld the sentences.

Francis Zuriels Moturi, a former NSSF Investment manager and three stockbrokers had been charged of hatching a scheme to defraud the pensioners’ fund some Ksh1.2 billion in 2008, but appealed the ruling by a lower court.

In his ruling Justice Nixon Sifuna refused to overturn the conviction, maintaining that the decision was right considering the evidence that was adduced and could not alter it.

The other three were David Githaiga, Wilfred Weru and Isaac Nyamongo who were stock brokers at Discount Securities Limited (DSL).

Justice Sifuna noted that the trial court operated under the legal threshold and that it was clear that the accused persons misappropriated public funds with impunity.

“It is clear from what the court heard that the accused perpetuated serious fraud on pensions of Kenyan workers in cohort with directors of Discount Security Limited,” noted Justice Sifuna.

He continued, “They need to learn painfully to respect public funds and restrain themselves from using and misappropriating the same.”

The four individuals were jailed for 14 years each in 2022, by former Chief Magistrate Lawrence Mugambi for perpetuating the loss of the Sh1.2 billion belonging to the Fund.

Mugambi, now a Judge, jailed Moturi for 14 years or a Sh2.6 billion fine, while the other three Githaiga, Weru, and Nyamongo, were each fined Sh802 million or 12 years in jail.

Reviewing evidence

The brokerage firm which is now in liquidation, was ordered to pay Sh4.8 billion, depending on the availability of funds from the sale of its assets.

Not satisfied by the ruling the four moved to the High Court for an appeal. However, Justice Sifuna observed that after reviewing the evidence he found that the prosecution proved beyond reasonable doubt that there was a conspiracy to defraud.

“What happened at NSSF was premeditated, ingeniously conceived and cunningly executed fraud on public funds of pensioners,” said Justice Sifuna.

“I find there was enough evidence to sustain the conviction. They were all properly convicted. The appeal on conviction and sentence fails,” concluded the judge.

The judge noted that the pensioners’ fund led to the loss of funds which could otherwise assist the intended beneficiaries.

Before assuming the investment docket, Moturi served as the head of the department responsible for purchasing shares.