CBK Governor finally speaks out on NYS scandal

Central Bank Governor (CBK) Patrick Njoroge has criticised financial institutions linked to the National Youth Service scandal for ‘deliberately’ ignoring the law.

According to him, it is blatant disregard for regulations that led to the loss of Ksh.9billion in the latest NYS scandal.

“The issue is not regulations or lack thereof, the guidelines are there; the issue is not enforcement or lack of understanding of the regulations either. It is deliberately not following guidelines,” he said.

Dr. Njoroge further issued a warning that all banks found culpable will face the law.

The CBK boss indicated that all of them are aware of how to spot suspicious transactions and wondered how such huge amounts sent to individuals could go undetected.

“We have provided banks with rules regarding Suspicious Transaction Reports and how to flag large frequent unusual transactions. How else could you make a mistake of things you are already aware of?” he posed.

Dr. Njoroge further intimated that he is working closely with investigating agencies to ensure that all suspects are brought to book.

“The first phase is to enhance the recovery process of the stolen funds from the suspects, some of whose assets have been frozen,” he said.

He added that the second phase will deal with the implicated banks and other entities.

The CBK boss expressed dismay over the loss of public trust in the CBK following the scandal.

He however assured Kenyans that he is assisting police in pursuing leads in the case that will lead to the recovery of the stolen funds and incarceration of individuals involved.