Invesco, agent employees charged over Sh309m fraud

Those charged from Invesco are Albert Karakacha Muhavani (a director), Daniel Wekesa Nalyanya (chief finance officer) and Michael Ng’ang’a Kibara (senior accountant) who denied two counts of insurance fraud and vesting assets of an insurance company in the name other than of the insurer.

From Compliant Insurance Agency Limited, four officials of the insurer were charged. They are Ruth Wangari Mwasalu, Antony Githinji Ngerere, Hilda Wambui Karanja and Lameck Gesore.

The case will be mentioned within two weeks.

The insurers (Invesco and Compliant) are alleged to have committed the insurance fraud within a span of four months between April 26 and August 13, 2024.

Illegal transfer

The charge presented by the Director of Public Prosecutions states that on diverse dates between April 26 and August 13,2024, Muhavani, Nalyanya and Kibara of Invesco plus Wangari, Githinji, Hilda and Jamleck of Compliant Insurance knowingly and willfully conspired with each other and others before court to illegally transfer Sh309,207,570 to the account of Compliant Insurance Agency’s account held at Oriental Bank, Sameer Park Branch.

The prosecuting counsel told Mr Mutai, that the alleged transfer of the Sh309,207,570 paid in as premiums by policyholders from 27 branches of Invesco Assurance Company Limited countrywide was illegal and irregular.

Further the magistrate heard the transfer of the colossal sum was in blatant violation of the Insurance Act.

Separately Muhavani, Nalyanya and Kibara were charged with vesting the assets of Invesco Assurance Company Limited (KSh309,207,570) without lawful authority nor direction from the Cabinet Secretary Treasury.

The three allegedly vested/transferred the Sh309,207,570 (assets) of Invesco into the bank account of Compliant Agency Limited held at Oriental Bank, Sameer Park Branch contrary to the law.

Both Invesco and Compliant were jointly charged with committing insurance fraud contrary to Section 204B (2) as read with Section 204 B (5) of the Insurance Act, Chapter 487 Laws of Kenya.

The two insurers were indicted between April 26 and August 13,2024 conspired to commit a fraud by allowing the depositing of the Sh309m into the bank account of Compliant when it belonged to policy holders of Invesco.

The premiums had been received from 27 branches of Invesco. The accused persons applied to be released on bond.

The prosecuting counsel did not oppose the release of the accused on bond but urged the magistrate to consider the large sum of money involved while considering their bail pleas.

Mr Mutai heard all the accused persons had been out on police cash bail. They told the court they had been cooperating with investigators for the last one year when the fraud probe was underway,

The prosecutor said the Sh100,000 police cash bail has since been refunded to them.

In a brief ruling, Mr Mutai said the accused persons had cooperated with the investigating officer when the insurance fraud was being probed.

He said no compelling reasons were volunteered by the prosecution and therefore he was inclined to release them on reasonable terms.

Mutai directed each of the accused persons to deposit a cash bail of Sh300,000 pending the hearing and determination of the case.

He also directed the prosecution to supply the accused persons with copies of witness statements and exhibits to commence preparing their defenses.

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