EACC welcomes High Court’s upholding of conviction of former NSSF manager and his co-accused

03:07:2024: The Ethics and Anti-Corruption Commission (EACC) welcomes today’s High Court judgement upholding convictions and sentences of four accused persons including former NSSF Investment Manager, Francis Moturi jailed in 2022 by the Anti-Corruption’s Chief Magistrates’ Court.

Mr. Moturi was convicted in two counts of conspiracy to defraud, and deceiving principal. He was accused of defrauding NSSF of KES1.2 billion by purporting to have purchased various quantities of shares of Kenya Commercial Bank, Barclays Bank of Kenya, Standard Chartered Bank, Bamburi Portland Cement Company Ltd, Kengen and Nation Media Group at the Nairobi Stock Exchange on behalf of NSSF yet no shares had been purchased in respect of the amount.

Jointly, Mr. Moturi and others orchestrated a fraud scheme at the NSSF that led to a loss of more than Kes2 billion.

He was slapped with a fine of Kes1 million or 2 years in default and additional fine of Kes2.4 billion or 9 years in default.

His grounds for appeal were premised on defective charges, insufficient evidence and improper sentencing.

While dismissing the appeal, Justice Prof. Nickson Sifuna found that Prosecution discharged its burden of proof and confirmed beyond reasonable doubt that Mr. Moturi, in conspiracy with Discount Securities Limited orchestrated a monumental fraud against the Fund. He also found that he threw his employer under the bus, betrayed the public trust and cheated pensioners who are a significant and vulnerable segment of the society. 

Justice Sifuna also found that the trial Magistrate properly applied his mind on sentencing, which he found to be neither harsh nor excessive.

Summarily, the judge found there was enough evidence to sustain conviction and that the accused were properly sentenced.

EACC finds this case significant for two reasons. One, the colossal amount of tax payers’ money stolen from the Fund in breach of public trust. Secondly, the deterrent nature of the conviction meted out by the Magistrates Court.

Notably, just like in the MP Waluke’s case, the Court imposed on the accused persons additional mandatory fine equal to twice the amount stolen as provided for under Section 48 of ACECA 2023.