Ericsson wrote:Metch wrote:whiteowl wrote:obiero wrote:Hot how.. It would be difficult for any Kenyan bank to have known of the scam. If payment has been received from IFMIS to the client bank account and the client presents an LPO along with invoice in support of works done.. The banks' work stops there! Hio ingine ni ya DPP na CID
I agree this is not on banks.If you have supporting documents the transaction is supposed to be approved.If the said documents were issued after supplying air that's an issue for the criminal justice system to solve.
Banks are liable. They have a responsibility to report suspect transactions e.g if an account that barely transacts receives 10M from a govt institution and the money is withdrawn in cash within the hour (no large amounts declaration forms were signed).
And this happened repeatedly at the same bank!
We should be asking which banks. Transactions happened at Ridgeway Mall. We have Equity, Coop, Chase and StanChart there
There is no stanchart branch at Ridgeways mall.
It's equity,Co-op and Chase Bank.
Chase bank is under receivership so there is a limit upto how much one can withdraw.
This leaves Equity and Co-op bank.
Ekweetee? I hope not
[Yes, I have a vested interest]
Coop? Let the 370mn chap answer those questions!
It's tough for banks to monitor all this. The huge withdrawals should raise an eyebrow but if a manager/staff is compromised then what can a bank do?
GoK is squarely at fault. These GoK projects have been leaking money since I was a kid. And before that. We do not need more GoK projects but PPPs and private sector initiatives.
Apart from the blatant theft, GoK has been borrowing like crazy.
Equity, SCBK, I&M, DTB, BBK, Stanbic, etc have increased their GoK paper holdings vs lending to the private sector thanks to the high rates offered.
The 15-year bond issued recently was at 13.07% so how many banks would want to lend at 13.5 to Wanjiku?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett