Four NTSA officials arrested for forging client logbooks to acquire loans

According to a statement issued by the Directorate of Criminal Investigation on Friday, the four were involved in a series of crimes that led to defrauding a lorry owner of about Ksh.2.6 million and later changing the vehicle’s ownership.

The DCI explained that Gideon Kiarie was financed by the Cooperative Bank of Kenya to acquire a lorry after depositing Ksh.1.2 million and agreeing to pay monthly instalments of Ksh.166,000 in 2020.

Kiarie later, unable to remit the monthly payments made a deal with a buyer who would be depositing the said amount until it was fully serviced.

“But in an unfortunate twist of fate, the new owner of the truck died a few months afterwards, before completing making the payments,” DCI stated.

His son, the heir, opted to put the vehicle on sale as he had no interest in the truck business.

Frederick Kilonzo approached him and expressed interest in the truck. Unknown to the owner that Kilonzo was a con,  Kilonzo wrote him two cheques each amounting to Ksh.1.3 Million which later bounced.

“By the time the owner realized, initial ownership details of Gideon Kiarie and Cooperative bank had been erased from the NTSA portal and replaced with others; Frederick Kilonzo and MyCredit limited, a finance company,” DCI explained.

DCI further revealed that Kilonzo instantly secured a loan of Ksh.2.8 million from MyCredit limited but only Ksh. 1.5 was deposited in his account. (DCI is still investigating the remaining amount).

MyCredit limited then auctioned the lorry in a span of ten days at a price of Ksh.4.5 million to John Muigai against the initial Ksh.6.5 million which the vehicle had been insured by the cooperative bank.

A further probe led to the Cooperative Bank disclosing that it was still the owner of the truck and had not transferred its ownership to anyone.

A search at the NTSA portal revealed that the original details of the vehicle’s ownership had been amended and replaced with Frederick Kilonzo and MyCredit limited.

“Crooked NTSA officials who claim that the system was hacked into, working with brokers and unscrupulous traders, had developed new documentation for the lorry and used the fake papers to acquire the loan,” DCI explained.

DCI says the four will be arraigned and charged with obtaining credit by false pretences, forgery, uttering a false document, issuing of bad cheques and fraudulent disposition of mortgaged goods.