Former Kenya-Re boss Jackson Githaka fined Ksh.15M in fraud case
Former Kenya-Re boss Jackson Githaka risks a two-year jail term if he fails to pay a Ksh.15.2 million fine.
The Anti-Corruption Court made the ruling against the former director on Tuesday after investigations raised eyebrows.
In his ruling, Magistrate Felix Kombo stated that the State had proved the case of fraudulent acquisition of public property beyond reasonable doubt.
Githaka is accused of illegally obtaining Ksh.7.26 million paid to Kenya Re by United Insurance Corporation.
The payment was made under statutory management of Kenya Reinsurance Corporation and was purported to be agency fees.
Former Kenya Re MD Johnson Jackson Githaka sentenced to sh 750,000 in default 1 year imprisonment & a mandatory fine of sh 14.5 million in default 1 year imprisonment for fraudulent acquisition of public property worth sh 7.26 million#AntiCorruption_ODPP pic.twitter.com/YALPHSMqQP
— ODPP_KE (@ODPP_KE) April 10, 2019
The court further heard that Githaka, the then Kenya-Re MD and Statutory Manager United Insurance Company wrote to Muriu Mungai and Co. Advocates on January 27, 2006 instructing them to release the 3percent commission of the sale price to an agent who was not specified.
3percent of the purchase price of Ksh.242million amounted to Ksh.7,260,000.
Johnson Githaka used the commission to purchase Nairobi Block 90/298 situated in Loresho estate and registered in his name and that of his spouse.
The Ethics and Anti-Corruption Commission (EACC) established that there were no agents in the sale of United Insurance Towers as the process was through competitive bidding.
Upon conclusion of investigations, the Director of Public Prosecutions (DPP) in 2009 directed that Johnson Jackson Githaka be charged with fraudulent acquisition of public property with the Kshs.7,260,000 as part of funds realised through sale of United Insurance Towers.
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