This week, the prosecution presented a high-profile case in court, which involved the theft of Ksh 449.6 million from the Fuliza mobile lending platform from Safaricom by Fuliza Gang.
The Anti-Corruption High Court arraigned seven suspects, including Gideon Kipkirui, Kipkemoi Isaac, Edwin Kipkorir, Nelson Kamau, Gideon Kibet, Jonnes Kipkurui, and Gedion Kipkoech, accusing them of laundering the funds through multiple bank accounts and purchases of luxury vehicles.
The court, after reviewing the prosecution’s evidence, granted the release of the suspects on bond, pending further investigations into the network of accounts allegedly used to channel the stolen money.
But as the case garners more attention, questions have emerged about the broader implications of the theft, particularly regarding the possible role of insiders.
Some glaring questions remain.
How did 10 people purchase 23,000 SIM cards without triggering any alarms?
How did they bypass the system’s usual checks and balances?
Could there have been more than just a couple of rogue employees involved?
An investigation by the Asset Recovery Agency (ARA) found that they received loans transferred to accounts under fictitious names.
This means someone had access to or control over these accounts.
A simple “SIM card registration” doesn’t guarantee access to Fuliza’s loan system, especially not at the scale seen in this case.
The court has since ordered the forfeiture of various high-end vehicles and motorbikes purchased with the stolen funds.
The Asset Recovery Agency (ARA) should receive these assets, according to Justice Patrick Otieno’s ruling, which is indicative of the serious breach at hand.
But who allowed such a breach to occur?
How was it that someone with only a basic bank account, showing minimal or no activity, suddenly found millions flowing through their accounts from multiple phone numbers?
Numerous bank accounts and M-Pesa wallets were receiving suspiciously large sums of money transfers.
Take the case of one of the suspects, Kipkirui, whose M-Pesa account received a total of Ksh 35 million in a single year, which he subsequently used to buy a Subaru Forester and make other large withdrawals.
They knew exactly how to navigate the system, and there are strong indications that they had help, whether from inside the company or from external collaborators.
The court also heard how Edwin Kipkorir’s account received funds from 44 different mobile subscribers, while Kipkemoi Isaac received over Ksh 1.7 million from mobile money deposits transferred to other wallets.
Nelson Kamau received the largest amount of stolen funds, Ksh 323.8 million, which he then wired to various mobile numbers to buy vehicles.
Investigators are also probing the involvement of corporate entities like NCBA Bank, Rensas Investments Ltd., and My Credit Ltd., as they examine how these companies may have facilitated the laundering of the stolen funds.
