Ex-NSSF boss sentenced to 14 years or pay 2.6B over Sh 1.6B fraud

Former NNSSF manager Francis Zuriels Moturi in court during his sentencing. Photo/credit

The Anti-corruption court in Nairobi has sentenced a former National Social Security Fund manager to 14 years in prison over 1.6 billion corruption during his tenure.

Francis Zuriels Moturi was given an alternative fine of Sh 2.6 billion by Chief Magistrate Lawrence Mugambi.

Moturi’s co-accused; Isack Nyakundi, Wilfred Munyoro and David Githaiga who were employees of Discount Security limited (DSL) will also pay a total fine of Sh 2.7 billion for the offense of conspiracy to defraud NSSF or serve a twelve year jail term.

DSL was also ordered to compensate NSSF Sh 4.8 billion.

The convicts are accused of defrauding NSSF Sh 1.6 billion by buying non-existent shares between August 2002 and July 2007.

In addition to the sentences, the magistrate barred the four from vying for any elective posts or being appointed to public office for the next 10 years. 

“Although the accused were not directors of DSL, they held managerial positions that resulted in the loss of funds. Their actions were calculated. They aided the fraudulent acquisition of Ksh1.2 billion shares,” ruled the magistrate.

According to Moturi, the money was used to acquire shares as NSSF was looking for a proper investment option.

The magistrate noted that even after the payments were done, Moturi never bothered to counter check the claims adding that the loss went on for a period of four years and was only known after he was replaced.

The court also found that Nyakundi was aware and had knowledge of what was going on, thus concluding that the irregularities were not coincidental but intentional.