Graft ridden Family Bank is on the spot for aiding Sh135million land fraud scam orchestrated by the National Land Commission (NLC) and Chosen Builders Investment Limited (CBIL), a private company linked to a controversial televangelist-cum-businessman and greenhorn politician David Kariuki Ngari alias Gakuyo, The Informer can reveal.
The intricate web plot to fleece taxpayers’ money was hurriedly executed in 2018 while acquiring the land on behalf of the State department of Housing and Urban Development of the Ministry of Transport and Infrastructure for the construction of a landfill.
In what points to a clear corruption scheme, the commission paid CBIL Sh135, 470,000 and the title was not transferred to the government to date.
The said compensation money was paid through Family Bank.
Further, despite having received compensation of the 50-acre piece of land in Murang’a County through Family Bank, thereafter, the bank allowed Ngari to charge the same title, irregularly held by CBIL for a bank facility.
Effectively, the government has since been dispossessed the land it paid for.
Senior government officials including Housing Principal Secretary Charles Hinga, NLC officials, Family Bank senior managers and directors of CBIL have been singled out as persons of interest in an ongoing investigations by the Parliamentary Public Accounts Committee (PAC) chaired by Ugunja legislator Opiyo Wandayi.
The committee has on-boarded investigators from Assets Recovery Authority (ARA) are also
Investigations by The Informer have established the bank is also under parallel investigation by the anti-Banking Fraud Investigation Unit (BFIU) attached to the Directorate of Criminal Investigations over the same transaction.
The 50 acres are part of 300 known as Mitubiri/Wempa Block in Murang’a County, which is registered in the name of Chosen Builders Investment Limited whose director is Ngari, and has been charged as bank loan security at Family Bank.
The land commission paid Sh135 million two years ago for the parcel of land in question but did not obtain ownership documents.
The Ministry of Transport acquired the land for the construction of Murang’a Sanitary Landfill Project co-founded by the World Bank.
However, despite World Bank having already pumped in Sh700 million into the project, records indicate the venture is being done on a private land.
The project was meant to solve solid waste management challenges in Murang’a, Kiambu and Nairobi counties.
“This is a clear scheme that was agreed upon by Family Bank, NLC and Chosen Builders to swindle Kenyans off their money. This project is 80 per cent complete and the title is nowhere to be seen and the money is already with you. What is going on?” Wandayi posed.
He added: “As Family Bank, how did you extend this loan facility to this company if you had proper knowledge of the nature of business Chosen Builders is associated with?”
The Auditor General Nancy Gathungu also flagged the transaction in a special audit.
In a special audit on NLC’s payments on behalf of other government entities for the period 2014-15 to 2016-17, the Auditor General stated the parcel was still registered under Chosen Builders Investment despite the land having been fully paid for.
“NLC made an offer of award of Sh135, 470,000 to M/s. Chosen Builders Investments Ltd, vide a letter Ref: VAL 1506 dated 24 November, 2016 signed by Dr Salome Munubi, Director of Valuation and Taxation on behalf of NLC. The plot owner accepted the offer of award on 29 November, 2016,” Gathungu said.
“As at the time of special audit, NLC had paid M/s Chosen Builders Investment Ltd a total of Sh135, 470,000 in two instalments of Sh53, 000,000 paid on 20 April, 2017 while the final installments of Sh82, 470,000 was paid on January 12, 2018.”
Gakuyo is not new to land controversies.
He is accused of illegally transferring money belonging to 78,000 members Ekeza Sacco and Gakuyo Real Estate Company to his personal accounts.
The government revoked Ekeza license in 2018 following complaints that the Sacco was sharing office space and bank accounts with Gakuyo Real Estate Company.
During the annual Police Sacco conference held in Nairobi, Interior Cabinet Secretary Fred Matiang’i directed immediate former Inspector General of Police Joseph Boinnet to take stern action against rogue people embezzling people’s money through savings and credit entities.
Ekeza Sacco officials are accused for misappropriating of Sh2.5billion.
Gakuyo has since been forced to close down offices at Yala Towers at the junction of Koinange and Bishara Street have been closed citing disturbances of other tenants by members of the preacher demanding their savings from the collapsed entity.
He also runs Calvary Chosen Centre in Thika, Kiambu County.
In 2018, Family Bank pleaded guilty for its role in the Sh1.6 billion National Youth Service money laundering saga.
The bank committed to paying Sh64.5 million following a plea bargain agreement with the Director of Public Prosecutions (DPP).