A court Thursday issued a warrant of arrest against Kenya Union of Savings and Credit Cooperative(Kuscco) CEO George Ototo in a Sh82.8 million fraud charge.
This is after he failed to appear in court to face fraud charges.
An advocate and top officials of Kuscco were charged with stealing Sh82.8 million from the lender.
Jackline Atieno Omolo was jointly charged with Kuscco chairman David Magutu Mwangi, George Ochola Owino, and Mercy Muthoni Njeru before Milimani Senior Principal Magistrate Dolphina Alego.
They denied nine counts, including conspiracy to commit a felony, stealing, uttering false documents, and money laundering.
They were remanded until February 18 when their plea to be released on bail will be heard.
The four were accused of conspiring to steal by diverting a total of Sh82,826,000-property of Kuscco – for the purchase of land LR23269/35 in Nairobi, on diverse dates between October 2022 and April 2022, along with others not before the court. The agreement was allegedly used to conceal the nature and source of the funds in accounts held at Kenya Commercial Bank (KCB) and M Oriental Bank under the account name Jackline P.A Omolo & Advocates.
The court heard that the accused had reason to believe that the said funds were proceeds of crime.
In a separate charge, they were accused of stealing as directors and officers of a company and making false documents, contrary to the law.
They denied making and uttering an agreement for the sale of land LR 23269/35 to make it appear authentic.
Additionally, at an unspecified time but within the same period, Omolo allegedly presented a forged sale agreement for land LR 23269/35 to KCB Bank University Way Branch, purporting it to be genuine and belonging to Catherine Wanjiku Mbugua.
The accused denied all charges brought against them.
The prosecution did not oppose their release on bond.
Defence lawyers, led by Caesar Wanjau, Okore Jayalo, and Otieno Mugla, pleaded with the court to grant lenient bail terms, citing the time elapsed since the alleged offense and their clients’ cooperation with investigators.
Police say they are investigating fraud involving Sh18 billion.
Detectives said they were looking for Ototo and their efforts to trace him had not borne fruits. This prompted the issuance of the warrant against him.
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