Alfred Keter speaks out as he spends third night in police cells
- Keter says his dramatic arrest on Friday, February 16 was part of a plan by government operatives to cover up a multi-million fraud committed against Desai Industries Limited.
- He denied allegations that he presented to the Central Bank of Kenya forged Treasury Bills worth Ksh.634 million for payment.
- Keter and the two directors are set to be arraigned in court on Monday after spending three nights at Muthaiga Police Station.
Nandi Hills Member of Parliament Alfred Keter says his dramatic arrest on Friday, February 16 was part of a plan by government operatives to cover up a multi-million fraud committed against Desai Industries Limited.
In a statement issued through his lawyer, Keter on Sunday denied allegations that he presented to the Central Bank of Kenya forged Treasury Bills worth Ksh.634 million for payment.
“My involvement in this matter was only with regard to my role as a Member of Parliament and pursuant to Article 95 (2) of the Constitution of Kenya which empowers the National Assembly to deal with issues that concern the people. It was solely for the purposes of me helping them Petition parliament with regard to the fraud committed against them,” said Keter.
According to Keter, Desai Ltd, whose directors were arrested with him, bought T-bills (Issue No. 1138 and 1148) worth a combined Ksh.634 million in 1990 and the amount was to mature within 90 days.
However, Keter says Desai Ltd did not redeem the said Treasury Bills as soon as they fell due since the company’s Chief Executive Officer, who was in possession of the Treasury Bills Certificate, was perennially out of the country.
The company’s directors are however said to have written to the Central Bank of Kenya on July 4, 2017 demanding payment of the Ksh.634 million together with interest, but they were apparently informed that the T-bills had already been redeemed.
“The Central Bank, through its authorised signatories, Jeremiah K. Tomno and John K. Njau, wrote back stating that after a perusal of their records, the Treasury Bills in question had been redeemed and proceeds therefrom paid in full,” said Keter.
The lawmaker says after the feedback from CBK, Desai Ltd secured the services of a lawyer and wrote to the CBK Governor on August 18, 2017 and August 23, 2017 contending that their client had not been paid any amount from the said T-bills.
Desai Ltd also demanded for documentary evidence on “who was paid, when they were paid, the amount allegedly paid and to which account the said amount was paid.”
“No response was ever made to the demand letter dated 23rd August, 2017,” said Keter.
“I am convinced that my arrest and subsequent humiliation before the media was purposefully designed to cover up the fraud committed against Desai Industries owners,” he said.
Keter argues that if the said Treasury Bills had been procedurally redeemed, the CBK would have had the Desai Directors arrested as early as July 4, 2017 when they first demanded payment for the T-bills.
Keter was arrested together with Arthur Ingolo Sakwa and Madat Suburali Chatur for what CBK and the Banking Fraud Investigations Unit said was presenting forged 90-day Treasury Bills dated 1990.
The arrest came minutes after the three held a meeting with CBK Governor Patrick Njoroge where they were asked to sign a document about the session they had just held.
In an interview with the Sunday Nation, Keter said after appending his signature as a “witness” plainclothes police officers from the Banking Fraud Investigations Unit walked in, handcuffed them and took them away in the full glare of cameras.
Keter and the two directors are set to be arraigned in court on Monday after spending three nights at Muthaiga Police Station.
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