The KCB Bank Group Lodwar Branch in Turkana County was used to launder proceeds of corruption, according to a source and documents seen by Kenyan Business Feed editor.
The document which was shared to detectives from the Directorate of Criminal Investigations and Ethics and Anti-Corruption Commission (EACC) has not been acted on as the whistleblower claims that the detectives seem to have been compromised.
“There was revenue fraud at Turkana County Govt. Very glaring evidence is attached here. The sad reality is that those sent from banking fraud unit at DCI and EACC seems to have been compromised’, said the source who did not wish to be mentioned.
This is How It Happened
The Turkana County Government (TCG) impounded the road construction equipment of a Chinese contractor because of non-payment of the requisite permits as required thus denying the county its revenue.
John Korikel, the immediate former Director of Revenue at the County then opened a fake TCG Revenue account flouting provisions of the Central Bank of Kenya (CBK) and Public Finance Management (PFM) Act. It is in this account that some money, the ‘revenue’ of Ksh8 million was deposited.
The money was immediately afterwards withdrawn and the account quickly closed.
The latest info is that John Korikel, immediate Director of Revenue, then went ahead to deposit Ksh. 2 Million to the right county revenue account. He is pursuing Charles Lokiyoto – the County Executive Committee Member (CECM) for Trade and Youth and John Ariko Chief Officer (CO) Infrastructure to refund the remainder.
Why he had opened the account at KCB Bank Lodwar Branch in the first place remains a mystery.
The source stated that they have written to EACC and want the Branch Manager of KCB Lodwar to be included in the investigations.
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