Court Fines Kenya-Re Director and his Accomplice Ksh.14 Million for Corruption

Court Fines Kenya-Re Director and his Accomplice Ksh.14 Million for Corruption

14.5.2019 -A Former Director of the Kenya Re Insurance Corporation, Mr.John Faustin Kinyua and a former manager with Heritage Insurance Company Limited, Mr.Charles Gichane have been fined a total of Ksh14,787,584 after being found guilty of fraud by a court in Nairobi.

Anti-Corruption Court Magistrate, Mr.  Lawrence Mugambi found the two guilty and ordered them to pay the fines. Mr Kinyua, a former Director of Finance and Corporate Services was convicted for abuse of office while Mr. Gichane was convicted for fraudulent acquisition of public property. Each accused will separately pay Ksh7,393,792 or serve a four-year jail term in default.

The magistrate found that the prosecution had produced evidence to prove a case against the two beyond reasonable doubt. He said the evidence shows that the two accused persons took time to plan and execute the fraud against Kenya Re.

The accused were charged in court following investigations by the Ethics and Anti-Corruption Commission (EACC) over the fraudulent sale of a house owned by Kenya Re within Nairobi County.

The Commission investigated an allegation that Mr. Kinyua, fraudulently sold Kenya Re’s Property LR. 209/10611/106 House No. 70 situated at Villa Franca Nairobi to Charles Kinuthia Gichane. The house was sold for Kshs 3,196,896 an amount allegedly paid by Mr. Gichane.

Investigations established that Kshs 3,196,896 in respect of the sale was not made by Mr.Gichane. The amount was paid by his employer Heritage Insurance Company Ltd to settle re-insurance claims due to Kenya Re from Heritage Insurance Company Ltd. Mr. Kinyua collected the cheque, banked in it Kenya Re’s account, altered a copy of the pay in slip and presented it to his employer Kenya Re as payment by Mr.Gichane for purchase of the  house.

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