Documents presented by the prosecution in court reveal that the firm 51 Capital, owned by the controversial businessman Joe Kariuki, who has a criminal past, used fake documents in nearly all its transactions.
This fraudulent activity resulted in the firm being paid a staggering Sh 206.2 million, leaving many farmers facing significant losses.
This case has brought back memories of the infamous NYS scandal, where banks were implicated in the looting of public funds.
Now, NCBA Bank finds itself embroiled in a multimillion fake fertilizer scandal, which has shocked the nation and left many farmers in distress due to the greed of a few individuals who conspired with corrupt businessmen in the supply chain.
According to the court documents, Joe Kariuki used NCBA Bank, owned by the Kenyatta family, to defraud farmers and launder money.
The National Cereals and Produce Board (NCPB) officials allegedly conspired with Kariuki to supply farmers with a soil conditioner, diatomaceous earth, under the guise of providing them with fertilizer.
The fraudulent scheme involved purchasing the soil conditioner at Sh 200 per kilogram and selling it to the NCPB at an inflated price of Sh 1700 per kilogram, yielding substantial profits for the perpetrators.
A total of 106,000 bags of the soil conditioner, each weighing 25 kg, were supplied to the NCPB, resulting in 51 Capital being paid Sh 205,222,000.
The payments were made through 51 Capital’s account number 4746630018 at NCBA Bank’s Prestige branch, using the Swift Code CBAFKENXXXX.
The documents indicate that on March 31, 2022, 51 Capital entered into a contract with the NCPB to supply various items, including animal supplements, GPC Guard, and diatomaceous earth.
The contract was signed on behalf of the NCPB by suspended Managing Director Joseph M. Kimote and Corporation Secretary J.K. Ngetich, while Josiah Kimani Kariuki, a director at 51 Capital, signed on behalf of the firm.
The document was witnessed by Abraham G. Wanjiru.Further details have emerged showing that 51 Capital allegedly bought the soil conditioner from African Diatomite Industries, repackaged it into 25 kg bags, and resold it to the NCPB at a highly inflated price.
This fraudulent activity has not only resulted in financial losses for farmers but also undermined trust in the agricultural supply chain and banking institutions involved.
The case highlights the need for stringent oversight and regulatory mechanisms to prevent such fraudulent activities and protect farmers and the public from unscrupulous business practices.
The prosecution’s revelations are expected to lead to a thorough investigation and potentially significant legal consequences for those involved in the scandal.
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