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State fails to trace Sh250m NYS paid Ngirita family

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State fails to trace Sh250m NYS Ngirita family

Lucy Ngirita, Anne Ngirita, and Phyllis Ngirita
Lucy Ngirita (left) Anne Ngirita (Centre) and Phyllis Ngirita. FILE PHOTO | NMG 

Taxpayers are unlikely to recover more than Sh250 million wired to the accounts of three members of the Ngirita family from the National Youth Service (NYS) that is subject of fraud suit.

Ms Phyllis Njeri, Mr Jeremiah Gichini Ngirita and their mother Mrs Lucy Wambui Ngitira received Sh361 million from the NYS between November 2015 and April 2018, but the State managed to trace properties of less than Sh100 million.

Documents filed in court show the State has managed to freeze five parcels of land in Nakuru, Naivasha and Trans Nzoia and three Toyota cars estimated at Sh95 million, but there is no mention of the five bank accounts at KCB.

This signals that the billions that were siphoned were stolen through fictitious invoices and multiple payments on one supplier invoice.

Sources at Assets Recovery Agency (ARA) say the Ngiritas moved huge amounts of cash before a decision was made to charge them in a group of 54 persons among them civil servants and businesspeople.

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Court documents showed that Mrs Ngirita received Sh211 million from NYS to KCB accounts belonging to her firms, Waluco Investments and Ngiwaco Investments, while Jeremiah through his company Jerrycathy received Sh87.9 million between December 2015 and April 2016.

Mrs Ngirita transferred Sh58 million to her personal account at KCB, bought a Sh46 million plot in Naivasha and another in Nakuru for Sh7 million, ARA documents reveal.

She jointly with her son purchased 0.70-hectare parcel of land in Waitaluk in Kitale for Sh20 million.

Jeremiah bought plots in Naivasha and Nakuru for Sh2.5 million. Mrs Ngirita’s daughter, Ms Njeri , received Sh57.2 million from NYS.

“The investigations revealed Ms Njeri was paid directly to her personal account, which is contrary to procedure,” says ARA. “This is clear case of fraud as there is no evidence of goods or services procured by NYS.”

The Ngirita family received the Sh361 million from NYS that was split into 79 transactions in a scheme designed not to raise the red flag.

“The three accounts received Sh133.9 million between 17th and 18th October, 2016,” says ARA

“Money received from NYS through their business entities were further intra-transferred within the same bank into accounts owned by family members.”

KCB was fined Sh149.5 million for failing to report suspicious transactions in connection with the theft of funds at the NYS. Standard Chartered Kenya, Equity, Diamond Trust, and Co-operative Bank were also fined a total of Sh247 million.

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World Bank pushes G-20 to extend debt relief to 2021

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World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.

“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.

He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.

The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.

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People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.

For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.

Debt burdens, already unsustainable for many countries, are rising to crisis levels.

“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.

ALSO READ:Global Economy Plunges into Worst Recession – World Bank

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Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans

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The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.

“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”

According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.

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Tighter Reins on Platforms for Mobile Loans

The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.

Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.

Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.

SEE ALSO: Central Bank Unveils Measures to Tame Unregulated Digital Lenders

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Scope Markets Kenya customers to have instant access to global financial markets

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NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options. 

This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.

The Scope Markets app offers clients over 500 investment opportunities across global financial markets.

The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.

The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).

The platform also offers an enhanced client interface including catering for those who trade at night.

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The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour;  Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).

The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.

Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”

He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.

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