Two officials of collapsed stockbroker Discount Securities Ltd (DSL) who were jailed for defrauding the National Social Security Fund (NSSF) Sh1.6 billion have lost a bid to introduce additional evidence in their appeals.
David Murungu Githaiga and Wilfred Munyoro Weru wanted the High Court to allow them to produce additional evidence to support their appeal against the lower court’s decision to convict and sentence them over corruption.
The duo was convicted in February 2022 and slapped with a fine of Sh803 million each or in default serve 12 years in jail, for the loss of the pensioners’ funds between 2004 and 2007.
They were jointly accused of causing NSSF to pay Sh1.6 billion for shares not purchased.
They were found guilty of defrauding NSSF of the amount by buying non-existent shares for the Fund. The trial court found that they sent false information that NSSF acted on to buy the shares.
But Justice Esther Maina dismissed their request, saying it had not met the legal threshold.
“I have considered the application and submissions and they have not met the threshold. The application is dismissed,” said the judge in her brief ruling.
She directed that the appeal be mentioned on May 24, 2023.
They were sentenced alongside former NSSF investment manager Francis Moturi and another DSL official Isaac Nyakundi Nyamongo.
They were fined a total of Sh9.6 billion jointly. They had been charged with five counts of corruption-related offences.
At the culmination of the trial, Mr Moturi was convicted of two counts: conspiracy to defraud and deceiving a principal.
Witnesses testified that when NSSF decided to purchase shares, the Fund’s investment committee resolved to have a number of stockbrokers transact on behalf of NSSF.
Mr Githaiga was the executive director at DSL, Mr Weru was the finance director and Mr Nyamongo was the investment manager.
