Two company directors were on Monday fined Ksh2 million each or serve a two-year jail term for defrauding Fina Bank more than Ksh243 million six years ago.
Senior Principal Magistrate Martha Mutuku handed down the sentence after convicting Javendra Khimti Malde and George Anatieku Opollo for the offence of defrauding Fina Bank Sh243,337,942.
The two were convicted for falsely informing the bank they had been allowed to get a bank overdraft in the account of Khalina Enterprises Limited based in Thika within Kiambu County.
The two convicts had been charged alongside other directors of Khalina Enterprises Limited — Messrs Ranjan Javendra Malde, Millan Javendra Malde and Geoffrey Were Radier — who were discharged for lack of evidence linking them with the fraud.
They were accused of hatching the plot to defraud the bank on diverse dates between January 4 and August 2010 in Thika Town, being directors of Khalina Enterprises Limited.
The charge alleged that all the accused incurred a liability to Fina Bank of Sh243,337,842 by falsely pretending that they had been authorised to overdraw the amount a fact they knew to be false.
“The prosecution has proved that the bank lost the colossal amount through misrepresentation by the accused,” Ms Mutuku said in a judgment delivered at the Milimani Law Courts in Nairobi.
The magistrate was asked to treat the two convicts as first offenders.
In mitigation the accused prayed for leniency while imposing sentence. They said they were family people and even prayed for non-custodial sentence. “This court considers your mitigation. You are hereby fined Sh2 million or to serve two years imprisonment in case of default,” ruled Ms Mutuku.
The magistrate gave 14 days for appeal against the sentence.