Details of Sh1.5B Equity Bank Heist Behind the Abduction of Manager and His Father: Inside the Daring Fraud Scheme
On July 10, the Internal Control Department at Equity Bank Ltd flagged suspicious activities in the salaries account.
A total of 47 withdrawals were recorded from the payroll account.
The funds were rapidly moved into various accounts across different banks.
Typically, when funds are transferred between bank accounts, the systems involved exchange transaction details, including the names of the individuals or entities and the amount, ensuring everything is legitimate.
In banking terminology, this process is known as corresponding credits.
However, in this case, the 47 transactions showed no corresponding credits from Equity Bank’s side, making it appear as if the substantial sums appeared out of nowhere.
This anomaly triggered suspicion within the internal controls team, prompting an immediate review of the transactions for verification.
The investigation revealed that Kenya’s second-largest bank by assets had fallen victim to a major heist, with Sh1.5 billion earmarked for salaries and other emoluments being siphoned off.
Equity Bank’s head of security, Kevin Mwangi, reported the fraud to the Directorate of Criminal Investigations (DCI) Banking Fraud Investigation Unit the following day.
Salary Processing Unit
According to court documents, preliminary investigations by the DCI identified that the credentials of David Machiri Kimani, a manager at Equity Bank’s Group Processing Centre, Salary Processing Unit, were used to facilitate transactions totaling Sh1,545,887,140.49.
Mr. Kimani’s credentials were allegedly used while he was on leave, and the fact that he possesses a valid passport made him a primary suspect in the ongoing investigation.
Authorities apprehended Mr. Kimani from his Thogoto home in Kiambu County on Sunday as his family members attended church.
Eyewitnesses reported that around 11 a.m., about 10 armed men arrived at Mr. Kimani’s gate and left with him in a convoy of multiple vehicles.
Later, another group of armed, hooded men raided the Mathioya home of Mr. Kimani’s father, Peter Kimani Machiri, 12 hours after the first abduction.
Detectives suspect the elder Mr. Kimani is also linked to the investigation.
Surveillance footage released by the Machiri family showed masked men carrying guns as they abducted the former politician.
Some of the intruders were equipped with battering rams, which they likely used to break through the gate and doors.
The gunmen cut off the power at Mr. Machiri’s home, stormed the premises, and forced him into a vehicle before speeding away.
As of press time, no formal application for the elder Mr. Machiri’s detention had been filed.
Kikuyu Police Commander Ronald Kirui stated on Wednesday that no reports of the abduction involving the Equity Bank employee or his wife had been filed.
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“We have no record of such incidents at any police station in Kiambu County,” Mr. Kirui said.
Ndegwa Njiru, the family’s lawyer, confirmed that the banker’s wife remains missing as of Wednesday.
Her whereabouts continue to be a mystery for the family and the legal team.
Mr. Njiru added that her phone has been switched off since her disappearance.
According to court documents, the fraudulent scheme was orchestrated by Britam Towers, with involvement from multiple units within the bank.
Detectives disclosed that Mr. Machiri took sick leave in early June, during which time communication was exchanged between the Salary Processing Unit, Finance Department, and Reconciliation Unit to align with bank policies on account regularization.
Further investigation revealed that most of the accounts debited with the funds were newly opened.
Once the money was credited, it was immediately moved to other accounts and later withdrawn to avoid detection.
The DCI also discovered that many of the accounts receiving the funds were linked to newly registered businesses.
Investigators believe these businesses were set up solely to receive the fraudulently acquired money.
Beneficial Owners
As of July 11, when the DCI filed the report, several accounts that received funds without corresponding source entities were flagged, as investigators began tracing the primary beneficiaries and true owners behind these businesses.
Detectives suspect that these businesses were established specifically to launder the stolen funds and provide a channel for withdrawing the proceeds.
The Banking Fraud Investigation Unit of the DCI presented these findings to the Chief Magistrate’s Court in Milimani, Nairobi, on July 12, requesting permission to detain Mr. Kimani for 21 days while the investigation continued.
The DCI stated that an urgent crackdown is necessary to prevent further economic harm and protect depositors and investors.
In an affidavit, police officer Bonface Maina, attached to the Banking Fraud Investigation Unit, revealed that the investigation focuses on charges of money laundering and theft by a servant.
Flight Risk
To justify Mr. Kimani’s detention, the officer highlighted that Mr. Kimani poses a flight risk due to his passport.
Mr. Maina also noted that Mr. Kimani has residences in both Thogoto, Kiambu County and Kairi in Murang’a County, where detectives plan to conduct searches and forensic analysis.
According to Mr. Maina, initial findings suggest that Mr. Kimani’s associates include his father, who is involved in government tenders at both the county and national levels, and whose homes are also part of the planned search.
The detective requested that Mr. Kimani be held at Kileleshwa Police Station for 21 days.
However, according to lawyer Ndegwa Njiru, the court denied the request and instead released Mr. Kimani on bond.
Nancy Wambui, Mr. Machiri’s wife, recounted to reporters that just before the night raid, the couple had spent the day at church.
“Our dogs began barking as soon as we went to bed,” she explained.
“We were curious about what was happening outside.”
She added that the dogs were barking at the armed men trying to breach the gate.
Details of Sh1.5B Equity Bank Heist Behind the Abduction of Manager and His Father: Inside the Daring Fraud Scheme
