HZ GROUP of companies of Nicholas Biwott owes Trade Bank and the Deposit Protection Fund (DPP) Sh1.3 billion, the Commission was told while former Central Bank of Kenya (CBK) Governor Erick Kotut was accused of being the mastermind of the goldenberg scam.
Kotut developed his flower farms Karen roses through a loan obtained from the collapsed Pan African Bank. Kotut who denied being the mastermind the Goldberg scam could not disclose how much money he received from the bank. He said it was small money slightly over Sh 1 million. Post Bank Credit (PBC) collapsed.after funding the 1992 – general elections through operatives dubbed Youth for Kenya 1992 (YK 92) ,Biwott’s companies never contributed any monies towards the construction of the upmarket prestigious Yaya Centre but relied on a Sh 500 Million advanced by TB.
The commission, heard that DPF lost both Yaya Centre and Sh 600 million advanced to TB to bail it out from a financial quagmire. Kotut said that’ the’ law should take its course and recover these funds from these properties.
Commissioners Justice Samuel Basire, Nzarnba Kitonga and Petir Le Pelley directed that a full list of those who benefited from funds from the collapsed PBC through YK 92 be availed to them. The funds were linked to the pre-shipment exports finance scheme which was grossly abused by then politically correct banks. DPF Lawyer Cecil Miller will team up with Lawyer Dr Githu Muigai for Treasury ex-PS Dr Wilfred Karuga Koinange and the assisting counsel to prepare a whole list of who received what from PBC under the guise of YK 92.
The Justice Bosire led Commission heard that the Directors of TB Noor Kassarn and Mr Reyner fled the Country following fraudulent deals through the pre-export shipment finance scheme. Kassam fled to Canada and police are still hunting for him. Kotut said that over Sh 5 billion disappeared from TB through this scheme and when Police zeroed on them they fled. An International warrant of arrest exists in respect of the duo. The commission heard that businessman Kamlesh Patti may have been involved in the construction of Yaya Centre through his appointee Mr N S Srikanth. PBC also transacted Sh 2.2 billion through this fraudulent scheme which was abused by the exporters under the guise they were sponsoring local companies to earn foreign exchange. Mr Srikanth who was involved in almost all the transactions of Goldenberg International Limited (GIL) and its related Companies including China trade agencies, Panther Investment limited and also H Z group.
