The sins of NYS have not be forgiven. The culprits are slowly paying for their sticky fingers.
Standard Chartered Bank (Kenya) is bracing itself for potential further financial penalties for its role in the handling of Sh1.6 billion that was siphoned from the National Youth Service (NYS).
Central Bank of Kenya (CBK) last year fined the lender Sh77.5 million for failing to flag and stop the cash movements.
KCB, Equity, DTB and Co-op Bank were also fined a total of Sh315 million for similar offences.
The five banks aided the flow of Sh3.5 billion in transactions that flouted anti-money laundering laws and other rules.
StanChart’s London-based parent Standard Chartered Plc has told its investors that the local subsidiary could face more financial consequences in the ongoing investigations.
“The Director of Public Prosecutions (DPP) and related agencies in Kenya are investigating Standard Chartered Kenya Limited (SCBK) and other banks in connection with the alleged theft of funds from Kenya’s State Department of Public Service, Youth and Gender Affairs,” the multinational said in disclosures to its investors.
“The group does not know whether any charges will be brought, but there may be penalties or other financial consequences for SCBK in connection with this investigation.”
The lender said the Directorate of Criminal Investigations had asked the DPP to charge a number of banks, including StanChart, officials and other individuals.