Former KUSCCO executives, lawyer freed on bond after six days in custody
were released on varying bond terms ranging between Ksh7million and Ksh10million.
Four former officials of Kenya Union of Saving and Credit Cooperatives (KUSCCO) charged within stealing Ksh82.8million have been released on bond.
Former KUSCCO chairman David Magutu Mwangi, former managing director George Otieno Ototo, former finance director George Ochola Owino and Mercy Muthoni Njeru were released on varying bond terms ranging between Ksh 7 million and Ksh 10 million.
Equally they were given cash bails of Ksh 3 million and Ksh 2 million.
Apart from Ototo, who surrendered to the court yesterday and spent the night in police custody, the others alongside lawyer Jackline Otieno Omolo have been behind bars for six days.
Milimani law courts senior principal magistrate Dolphina Alego released all the accused on bond saying it is their constitutional right.
“I have considered the submissions of the accused through their lawyers on bail. I note that the Director of Public Prosecutions Renson Ingonga through state counsel James Gachoka is not opposed to the grant of bond,” said Alego.
She proceeded to release Mwangi, the former chairman, on bond of Ksh 10 million with two sureties of similar amount.
She also gave him an alternative cash bail of Ksh3million and two conduct persons to swear before court they will ensure he attends all court sessions.
Ototo, a former managing director, was released on a cash bail of Ksh 10 million with two sureties of similar amount with alternative cash bail of Ksh 3 million and two contact persons.
Owino, a former finance director, was released on bond of Ksh 7 million with two sureties or alternative cash bail of Ksh 2 million and three contact persons.
Omolo was freed on bond of Ksh 10 million with two sureties of similar amount and an alternative bond of Ksh 3 million and two contact persons.
Muthoni was given a bond of Ksh 7 million with two sureties of similar amount and alternative cash bail of Ksh2.5million with three contact persons. In addition the magistrate ordered each of the accused to deposit their passports in court.
The former officials are facing nine counts of fraud, stealing, money laundering, making of false documents and uttering false documents.
Mwangi, Ototo, Owino and Muthoni have denied that being directors of KUSCCO stole Ksh 82 ,826 000 between October 9 2020 and April 30 2022.
The five are also charged with money laundering. They are accused of entering into a sale agreement for the purchase of land at a cost of Sh82.8m knowing the said were proceeds of crime irregularly acquired from KUSCCO.
The Sh82.8 million was held in the account of Jackline P Amolo & Company Advocates at KCB and M Oriental Bank.
The accused are said to have known that the money were proceeds of crime.
The five were also charged that on diverse dates between October 2022 and April 2022, jointly with others who were not before the court conspired to steal by diverting money totalling 82,826,000 property of KUSCCO meant for purchase of land LR23269/35 at Nairobi within the republic of Kenya.
The five denied that they laundered money laundering contrary to Section (3)(b) (i)as read with Section 16 of the Proceeds of Crime and Anti-Money Laundering Act.
The charge states that on diverse dates between October 9, 2020 and April 30, 2022, with others not before the court at Nairobi within the republic of Kenya with intent to dispose of, knowing or while reasonably ought to have known that the said money formed part of the proceed of crime received from KUSCCO entered in to agreement for sale of the land in order to conceal the nature and source of the money in the accounts held at Kenya Commercial Bank KCB and M Oriental Bank under the account name of Jackline P.A Omolo & Advocates whilst having reasons to believe that the said monies were proceeds of crime.
In another charge, they were accused of stealing by directors and officers of the company and making of false documents which is against with the law.
They were accused of making and uttering an agreement for sale of the land LR 23269/35 to make it appear authentic a fact which was false.
Separately, at an unknown time but the same period, the lawyer Ms Omolo uttered to KCB Bank University Way Branch a forged agreement for sale of the land LR 23269/35 of Catherine Wanjiku Mbugua purporting it to be genuine.
They denied all the nine charges levelled against them by the prosecution.
The magistrate directed the accused persons to abide by the bond terms imposed by the court.
The matter will be mentioned on March 5 for pre-trial.
