Equity Bank, Diamond, Standard Chartered, I & M, Chase, Bank of Africa, Jamii Bora, Fidelity and Guarantee banks are among financial institutions that received NYS Scam money, parliament’s Public Accounts Committee chair Nicholas Gumbo has said.

Gumbo said on Tuesday that the committee will appeal to the Director of Criminal Investigations and Ethics and Anti-Corruption Commission to investigate transactions pitting the financial institutions.

Rarieda MP and PAC Chair Nicholas Gumbo. Photo/Courtesy
Rarieda MP and PAC Chair Nicholas Gumbo. Photo/Courtesy

The Rarieda legislator said more than 100 firms were involved in the NYS scam but 11 out of the total 28 banks involved have been found clean.

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PAC says the financial institutions have the option of appearing before it or send written submissions detailing the nature of business the transactions involved.

However, the PAC chair said the banks are not by default culpable until but more details are solidified after they tell testify.

Gumbo pointed fingers at the country’s anti-graft agency for what he termed as failing to conduct in-depth probe to uncover institutions that transacted NYS money.

The PAC Chair stated that they will be writing to the EACC to establish if any investigation has been done on Central Bank of Kenya.

The NYS scandal was initially reported to have cost taxpayers Sh 791 million but Auditor General’s report placed it at a higher figure of Sh1.6 billion.

Central Bank Governor Patrick Njoroge endorsed the prosecution of top Family Bank officials over the fraud at the National Youth Service.

Njoroge wants the bank and its senior staff punished for failing to report to the Financial Reporting Centre the significant transactions by NYS suspects.