The Asset Recovery Agency (ARA) is looking into money deposits made by former PS Lilian Omollo into bank accounts belonging to her children.
The monies, investigators say was deposited around the same time when the second National Youth Service (NYS) scandal was reported.
On April 20 the agency has told a court, Ms Omollo wired a Sh20 million cash deposit to accounts held by Sheela Mbogo, Stephanie Mbogo and Shalom Kamwetu.
“All the accounts held at Diamond Trust Bank (DTB) are in names of the sons and daughters of Lilian Muthoni Mbogo,” said ARA.
The agency is now seeking to freeze the accounts which are believed to have been used to launder money.
“On analysing the accounts, it is clear that the monies were deposited in cash, raising suspicion of possible money laundering and proceeds of crime,” ARA told the court.
Ms Omollo was arrested and charged with the loss of Ksh468 million on May 28 alongside NYS Director General Richard Ndubai.
Last week the Central Bank of Kenya (CBK) penalized five banks; Standard Chartered, Equity, KCB, Co-operative, and Diamond Trust Bank Kenya Ltd that failed to comply with the requirements of Kenya’s Anti-Money Laundering/Combating Financing Terrorism laws and regulations in NYS transactions that amounted to Sh.3.5 billion.
According to the CBK the violations that the banks committed included failure to report large cash transactions, failure to undertake adequate customer due diligence, and lack of supporting documentation for large transactions.
Omollo is said to have deposited cash in her accounts in batches of Sh900,000 to escape the reporting threshold.
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