Former Kenya-Re boss Jackson Githaka fined Ksh.15M in fraud case

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.

— 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.

Tags:

Kenya Re Jackson Githaka

Want to send us a story? Submit on Wananchi Reporting on the Citizen Digital App or Send an email to wananchi@royalmedia.co.ke or Send an SMS to 25170 or WhatsApp on 0743570000

Leave a Comment

Comments

No comments yet.

latest stories