The court has warned that disobedience or non-observance of its orders could attract penal consequences. A collage of CEOs: Paul Russo (KCB Group) John Gachora (NCBA Group) and Gideon Muriuki (Coop Bank)/HANDOUT KCB, Coop Bank, NCBA bosses secure court orders stopping prosecution in Sh363m First Assurance saga KCB, Coop Bank and NCBA bosses have secured court orders stopping their prosecution in the Sh363.4 million First Assurance saga.
The three bank executives Paul Russo, Gideon Muriuki and John Gachora were expected to appear before the Milimani Chief Magistrate's Court on August 11 after being summoned in relation to allegations of failure to report suspicious transactions. At the centre of the case is a former Member of the County Assembly Salim Busaidy, who was also a co-director in the insurance company.
The allegations concern Sh363,420,459 said to have been stolen from First Assurance Limited on different dates between May 2018 and April 2024. The banks, however, have questioned the basis of holding them responsible for the entire amount, particularly where the alleged theft is said to have been carried out by an insider over a period of about six years.
The banks had reportedly been asked to commit to refunding money prosecutors allege was stolen from First Assurance. They declined, raising questions over how funds could allegedly be misappropriated by a company insider for such an extended period before the banks were later blamed and pressured to refund the money.
The person accused of the theft is a fellow director Busaidy, as alleged by his colleague directors including Issa timamy governor Lamu. The bank CEOs were alleged to have failed to report suspicious transactions