Assisting counsel Waweru Gatonye told Pattni that he paid an “incentive” of between Sh1.50 and Sh2.50 per dollar to a Kenya Commercial. Bank dealer known as Ndegwa. “You purchased foreign exchange from only one dealer on many occasions and repatriated the money to overseas accounts,” charged Catonye.
Pattni denied the allegations ant informed the commission that the money was paid to brokers ant agents who did the deals for Exchange Bank Ltd. He challenged Gatonye to produce any evidence to show that he bribed Ndegwa after the deals were done.
“That is your own thinking. It is figment of your own imagination,’ said Pattni. Gatonye told him that he sent the money to London and brought ii back later for purposes of claiming export compensation. He said according to evidence produced by foreign exchange dealer from Central Bank of Kenya, the commercial banks dealings involved third parties as alleged by Pattni. He said it involved telephone conversation between two dealers in the selling and the buying banks.
Pattni also defended Exchange Bank fos keeping foreign exchange in retention accounts after CBK had ordered that they be closed. Gatonye said he flouted the law, because his bank wrote a letter telling, CBK that it was holding proceeds of export in a retention account after the accounts were closed. “You ignored the circular and you were also keeping the money out of the country when you were suposed to bring much needed foreign exchange into the country. Pattni said Exchange Bank had the right to buy and repatriate money because it was a financial institotion but Goldenberg was supposed to bring money into the country.
