Five top officials from the Kenya Union of Savings & Credit Cooperatives Ltd (KUSCCO) have been charged in court over an alleged Sh 82,826,000 fraud linked to a land acquisition scheme.
George Magutu Mwangi, George Ochola Owino, Jackline P. Atieno Omolo, and Mercy Muthoni Njeru appeared before Milimani Principal Magistrate Dolphina Alego and denied the charges against them.
The four are facing multiple charges, including conspiracy to defraud, stealing by directors, making false documents, and money laundering.
According to the prosecution, between October 2020 and April 2022, the accused conspired to divert Sh 82,826,000, which was intended for the purchase of Land LR 23269/35 in Nairobi, into accounts held at KCB Bank and M Oriental Bank under the name Jackline P. A. Omolo & Advocates in an attempt to disguise the true origin of the funds.
The court heard that the accused knowingly engaged in fraudulent transactions, including creating and uttering false sale agreements to facilitate the illegal movement of funds. These forged agreements, presented as legitimate, were allegedly used to mislead financial institutions into processing the transactions.
The accused, who held key positions within KUSCCO, are also charged with embezzling the funds entrusted to them by virtue of their employment, leaving KUSCCO and its members at risk of severe financial losses.
The prosecution further alleges that Omolo knowingly presented forged land sale agreements to KCB Bank, University Way Branch, and M Oriental Bank, Koinange Street, falsely claiming they were genuine.
The court has issued summons for George Otieno Ototo, who failed to appear for plea taking, ordering that he be arraigned in court.
Meanwhile, the four accused have been remanded at Muthaiga Police Station pending a ruling on bond and bail terms set for February 18.
