The High Court has upheld the conviction and sentence of a former National Social Security Fund (NSSF) investment manager, Francis Moturi, in connection with a Sh1.2 billion fraud case.

Moturi was sentenced to 14 years in prison in 2022 after being found guilty of two fraud-related charges.

He was also given the option of paying a Sh2.4 billion fine.

Justice Nixon Sifuna dismissed Moturi's appeal, stating that the sentence was "neither unreasonable, excessive, harsh, nor illegal" given the severity of the crime.

The case revolved around allegations that Moturi, along with former officials of Discount Securities Ltd.

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(DSL), conspired to defraud NSSF through the purchase of "ghost shares."

Justice Sifuna highlighted that the prosecution "discharged its burden and proved the case beyond any reasonable doubt."

Appeals Dismissed Across the Board

The court also dismissed appeals from the former executive director of DSL, David Githaiga, and two other co-defendants.

These individuals were found guilty of fraudulent acquisition of public funds and conspiracy to defraud. They were each sentenced to 14 years in prison or a Sh800 million fine.

NSSF Directed to Recover Funds

The court further directed NSSF to recover Sh4.8 billion from the statutory manager of the fund.

This amount reflected the total loss incurred by NSSF due to the fraudulent activities

Defense Arguments Rejected

Moturi had appealed his conviction and sentence on several grounds, including claiming the charges were defective and lacked sufficient evidence.

Justice Sifuna dismissed these arguments, stating that "not every minor error would amount to an actionable defect" and emphasizing the court's focus on "merit rather than lofty procedures."

Fraudulent Investment Scheme Exposed

The prosecution, led by Caroline Kimiri, presented evidence demonstrating that Moturi misled the NSSF board of trustees by falsely claiming that DSL had purchased legitimate shares on NSSF's behalf.

Justice Sifuna concluded that Moturi, "a public official," acted in collusion with the DSL officials, who "need to learn painfully to respect public funds."

The fraudulent scheme was ultimately uncovered by a consultant hired by NSSF.

Background of the Case

This case stemmed from an appeal filed by four individuals convicted in 2022 for their roles in the Sh1.2 billion NSSF theft.

The initial judgment by Anti-Corruption Chief Magistrate Lawrence Mugambi sentenced each defendant to 14 years in prison and a hefty fine, reflecting the Anti-Corruption and Economic Crimes Act's provision for a mandatory fine equivalent to double the stolen amount.