Wednesday August 21, 2019
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CBI probe shows scale down of illegal remittances in BoB case

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New Delhi: The aggregate amount of illegal foreign remittances sent via a Bank of Baroda (BoB) branch under the context of imports, which is being probed by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), was scaled down from Rs. 6,172 crore to about Rs. 3,200 crore.

“The bank had initially quoted overseas remittances to the tune of Rs. 6,172 crore, based on an internal audit. Following a review, the bank then brought it down to Rs. 5,100 crore. However, the latest figure stands at Rs.3,200 crore,” an officer was quoted as saying to a newspaper.

The investigative agencies are tracking the transactions made through 59 bank accounts in the case, which were opened through an Ashok Vihar branch of Bank of Baroda by two bank officials. The transition of money took through Hong Kong and Dubai.

The majority of the accounts were registered under the name of import companies and mentioned fake addresses. The CBI investigations disclosed that the identification documents were forged in the name of slum dwellers, drivers and street vendors to set up these shell companies. They also paid Rs. 10,000 to 15,000 per month to the people for allowing them to use their documents.

CBI found that the deceitful exporters by the branch led to trade-based money laundering to retain illegal duty drawback benefits. The bank branch would use overstated statements, to pay an extra sum to their Indian accomplices, which would drawback the duty claims by them.

The arrangement by the bank branch caused a deficit of funds on the part of the middlemen and, to surpass the shortfall, the illegal sum would be pushed into the banking system via small and undetectable deposits through the entry operators in large numbers to Indian accounts.

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NYS Suspects Kabura, Gethi Charged Afresh then Freed on Ksh.300K Bail

In the new charge sheet presented on Tuesday, the Prosecution added one new count against Kabura, John Kago Ndungu and Partick Ogola Onyago

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NYS, Kabura, Money Laundering
Josephine Kabura, Ben Gethi and eight others have pleaded afresh to money laundering charges over the National Youth Service (NYS) scandal.

BY GEOFFREY ISAYA

Josephine Kabura, Ben Gethi and eight others have pleaded afresh to money laundering charges over the National Youth Service (NYS) scandal.

In the new charge sheet presented on Tuesday, the Prosecution added one new count against Kabura, John Kago Ndungu and Partick Ogola Onyago.

The particulars on the count 16 reads that between December 1, 2014 and May 30, 2015 in Nairobi, the three accused persons are alleged to have engaged in an arrangement for the transfer of Ksh. 90million into K-rep Ban Account belonging to Patrick Ogolla Onyango T/A Ogola and company Advocates.

This, according to Prosecution, they did while knowing or ought to have known the said money was the proceeds of crime, stolen from NYS.

NYS, Kabura, Money Laundering
The NYS LOGO

The Prosecution further alleged that the effect was to conceal the source of the Ksh. 791million. Also amended are the dates for the offences.

It is alleged that the said offences in the charge sheet were committed between December 2014 and April 2015.

Out 35 witnesses lined up to testify against the accused persons only nine have testified.

The Prosecution also indicated to the court they have not recorded nay new witness statements and if they do do they will serve the defence on time.

 

Similarly, the defence said that they do not intend to recall the witnesses who have already testified in the case.

The accused persons were first arraigned in court in the year 2016 and were charged with 15 counts.

Some of the proceeds were used to buy cars including Range Rover, Jeep Cherokee, Toyota Prado, Land Cruiser and other properties.

NYS, Kabura, Money Laundering
NYS suspects when they appeared in court,two out of them were charged afresh on Tuesday and released on bail.

They all pleaded not guilty to the new amended charges and are out on cash bail of  Ksh. 300,000 each.

 

The case will be heard next month.