SK Macharia seeks private prosecution of 14 people over Ksh.4B Directline Company finances

SK Macharia seeks private prosecution of 14 people over Ksh.4B Directline Company finances

The Chief Magistrate’s court in Nairobi has set for hearing on Tuesday, September 7, 2021 an application in which Royal Media Services Chairman Dr. SK Macharia is seeking to institute private prosecution against 14 intended accused persons over criminal offences relating to shares and finances at the Directline Assurance Company Limited.

The application, which has been scheduled for hearing before Principal Magistrate D. M Ndungi, has been filed against Inspector General of Police Hillary Mutyambai, Director of Public Prosecutions (DPP) Noordin Haji, Director of Criminal Investigations (DCI) George Kinoti and Attorney General Kihara Kariuki.

In the court papers, Dr. SK Macharia and Directline Assurance Company accuse DPP Haji of declining to prosecute the 14 intended accused despite overwhelming evidence of criminal offences relating to shares and finances of the assurance company.

The charges against the 14 intended accused relate to the handling of shares and finances at Directline Assurance company and criminal offences that date as far back as the year 2011. The 14 intended accused allegedly engaged in fraudulent transfer of shareholding and monies amounting to over Ksh.4 billion between the year 2012 and 2018.

Dr. SK Macharia and Directline Assurance Company unsuccessfully lodged their complaints with the police and the DPP.

In the application filed by Kamau Kuria and Company Advocates, the applicants that include Dr. SK Macharia, Royal Media Services, Royal Credit Limited and Directline Assurance accuse DPP Haji of partisanship and failure to exercise his constitutional mandate of prosecuting criminal offences.

The applicants have filed in court a trail of communication including a letter dated 18th of March 2021 in which Haji informed the Inspector General of Police that the office of the DPP could not establish a clear cut crime to warrant prosecution of the 14 intended accused.

Dr. SK Macharia and Directline Assurance described the letter by the DPP declining prosecution as an act of injustice against the applicants.

Dr. Macharia and Directline Assurance resorted to seeking private prosecution citing persistent frustration. The alleged offences against the 14 intended accused revolve around three complains previously filed with the Directorate of Criminal Investigations. First one is fraudulent transfer of shares in Directline Assurance Company Limited by some of the directors now listed as the intended accused.

Secondly, theft of money belonging to the Directline Assurance Company Limited by some directors and their associated companies.

And thirdly, obtaining money by false pretences by directors that allegedly bought apartments and land in the name of the Directline Assurance Company Limited.

The application for private prosecution seeks to establish 18 counts relating to fraudulent transfer of shareholding, stealing of funds to the tune of billions and breach of the Insurance Act at the Directline Assurance Company Limited by the 14 intended accused.

The application had been filed under certificate of urgency by Kamau Kuria and Company Advocates whose assisting counsel Julius Orenge confirmed that all the respondents have already been served.

The Nairobi Magistrate’s court scheduled that the matter be heard in the presence of both applicants and the respondents on September 7, 2021.

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