In a new twist of events it has emerged that Britam might not have lost Ksh1.2 billion under the watch of its former employees, as they claim. Instead, records show that the money was spent on various projects in the country.
Bank records in possession of Kahawa Tungu’s investigative desk show that the money that Britam accuses four of its former employees of stealing was wired from Standard Chartered Bank in Mauritius to Chase Bank in Kenya to different accounts held by Britam and its then Subsidiary, Acorn.
The money was meant for different projects which were initiated by Britam in conjunction with Acorn Group Limited. Acorn was Britam’s partner in real estate development, and even they (Britam) had shares in Acorn.
The money wired from Mauritius was acquired from investors. Mauritius was the preferred destination because of its tax treaty with Kenya hence avoiding double taxation. However, Britam group did not want the projects done for BAAM investors, they wanted the projects done for Britam directors, a move that former employees firmly resisted.
The disbursements were signed by Shiv Arora who was the Investment analyst for Britam, Elizabeth Nkuuku who held the position of a senior portfolio manager and Edwin Dande, the then Chief Executive Officer (CEO). The Investment Committee had already approved the five projects, in which the Ksh1.2 billion was to be used on.
As stated, only three executives authorised the transactions, which begs the question why Britam decided to include Patricia Wanjama in the suit. Sources within Britam intimated to Kahawa Tungu that the owners of Britam, working through the previous DPP, decided to manipulate the justice system to punish the Cytonn four, who exited Britam to form their own company.
Kahawa Tungu exclusively breaks down for you how the money was used, with statements attached.
The first Ksh9.9 million was disbursed to Edenvale Developments LLP, a student housing project sitting on a 0.4 acre piece on Jogoo Road, Nairobi.
Another Ksh42.2 million was disbursed to Starling Park Properties LLP, a real estate project on a 0.7 acre piece of land on Gitanga Road, Nairobi.
The third Ksh43.3 million disbursement was made to Crimson Court Developments LLP a real estate project on Riara Road, Nairobi.
Sinopia Properties LLP received Ksh150.7 million, a project sitting on a 202.9 acre piece of land located in Ollolooitikosh Town.
The final Ksh915.4 million disbursement was made to Mikado Properties LLP a real estate development sitting on a 28.4 acre piece of land in Mavoko on Mombasa Road.
This case is important to the market because it is about big corporates trying to keep their position by manipulating the system.
Next we shall explain to you how Britam issued fake statements to investors in their unit linked education policies. Our mole at Britam informed us that the DCI has been investigating Britam about their Mauritius Ponzi Scheme previous shareholder, Rawat. We would like the DCI to also investigate these education policies and the next series that we shall expose.
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