Blacklisted bonds dealer caught up in fresh fraud case

Blacklisted bonds dealer Fred Mweni is facing fresh charges of attempting to defraud the Judiciary, adding to a long list of court cases hanging over the former managing director of investment advisory firm Tsavo Securities.

Mr Mweni has at least five cases pending in court since he was in December last year banned from holding directorship of any listed company or licensee of the Capital Markets Authority (CMA).

In the latest case, Mr Mweni has moved to the High Court seeking to stop his prosecution for being an alleged accomplice to one Henry Achoka, who is accused of defrauding the Judiciary of Sh5 million.

Mr Mweni denies knowing Mr Achoka, claiming that he met him for the first time on September 17 at the CfC Stanbic banking hall, Kenyatta Avenue branch, when Mr Achoka allegedly sought his assistance to be introduced to the bank manager.

“Based on the foregoing, my arrest and subsequent arraignment or intended arraignment before court is illegal, unlawful and contrary to my right to personal liberty as guaranteed under the constitution,” says Mr Mweni in an affidavit filed in court on September 24.

CfC Stanbic Bank, however, claims in its response that Mr Mweni attempted to help Mr Achoka withdraw Sh8 million from the bank.

Ephantus Nyamu, the head of support services at CfC Stanbic, says Mr Achoka had during the day been denied access to his account at the bank’s industrial area branch after he failed to produce proof of transaction for the funds he received from the Judiciary.

Nyamu says Mr Mweni first approached him to explain Mr Achoka’s predicament, before calling him to see the manager.

Mr Achoka produced documents of transactions with the Judiciary but was told that he could not access the cash since the same had to be verified the following day.

But Mr Achoka and Mr Mweni allegedly demanded to be paid Sh8 million to pay a partner who was in the banking hall waiting.

The bank claims that when the manager refused to oblige, the two requested to withdraw money from another account, which is not part of the funds received from the Judiciary. They were allowed to make the withdrawal.

“The petitioner (Mr Mweni) and Mr Achoka were subsequently arrested by police as they attempted to make withdrawal of Sh1 million from Bonarnza Agencies account which account had earlier on been restricted for suspicious transactions,” says Mr Nyamu in the bank’s replying affidavit.

Mr Mweni is entangled in a web of cases emanating from an alleged theft of treasury bonds, which led to his suspension from being the MD of Tsavo Securities and the subsequent ban from being a director or employee of any CMA licensee.

He is facing accusations of having handled three fake treasury bonds worth Sh18.5 million, Sh9.5 million and Sh11.5 million.

The CMA blacklisted Mr Mweni on December 21 last year on grounds that he was blocking investigations into irregular trading of the fraudulent treasury bonds.

A suit in which Mr Mweni is seeking to quash the decision to suspend him is pending before the High Court. He has another separate case seeking to stop his prosecution over theft of the bonds.

In yet another case pending before the magistrate’s court, Mr Mweni’s brother, Bokole Mweni, is facing a criminal charges relating to handling of the stolen treasury bonds.

On Wednesday Mr Mweni was named as an accomplice in the Judiciary fraud case, where a former finance director with the Judiciary, Bennedict Abonyo Omollo, was charged with conspiring to steal over Sh80 million belonging to the institution.

Prosecuting chief inspector Esther Ngure informed the court that the case against Mr Omollo would be consolidated with the same case against three other people (including Mr Mweni) who have already been charged with the offence.

In his defence, Mr Mweni says he is innocent and only assisted Mr Achoka to meet the bank manager in the ‘kenyan’ spirit.

“I fear that my family especially my wife may not understand my innocence and lead to strained marriage yet I know I have done nothing criminal at all,” he pleads.