Witnesses detail financial fraud, exploitation in Sh356 million theft case against company director
Employees described systematic financial manipulation and workplace exploitation.
Two witnesses have presented detailed testimony against former Oki Trading Company Limited (OTCL) managing director Honey Khatwani, who is facing charges of stealing Sh356 million from the company, with employees describing systematic financial manipulation and workplace exploitation.
The case being heard before Senior Principal Magistrate Dolphina Alego at Nairobi's Milimani Law Courts has revealed troubling allegations about the company's operations under Khatwani's leadership between 2020 and 2024.
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Jatin Aswani, the first witness, testified about working for OTCL since July 2023 without proper documentation. Aswani revealed that despite repeatedly requesting Khatwani to facilitate his work permit application, the former MD failed to regularise his employment status.
When questioned about evidence of these requests, Aswani explained that "not everything is done through emails, some things are done through calls," highlighting the informal nature of their communications.
The witness confirmed having signed an employment contract but stated he never received a copy, noting that "employment contracts are always with the director, not the employees."
Aswani further disclosed that Khatwani paid staff in cash despite requests for formal banking arrangements, and alleged he was coerced to work through verbal threats, though he acknowledged having no physical evidence of these threats.
The second witness, Sameer Kewal Ramani, who identified himself as Khatwani's relative, provided evidence about the financial operations within the company.
Ramani testified that he regularly deposited company funds into Khatwani's personal Ecobank account in both Kenyan shillings and US dollars, as well as into his wife's M-Pesa account, following specific instructions from the former MD.
Ramani described how daily sales reports were shared via WhatsApp, which Khatwani would allegedly alter to hide financial discrepancies. "I would send Khatwani bank receipts via WhatsApp after depositing money in his personal accounts,"
Ramani told the court. The witness also revealed that Khatwani had established a competing company, Galaxy Middle East Africa Limited, while still serving as OTCL's managing director, and would personally contact OTCL clients to redirect business to his new venture.
The court heard that the scheme came to light when an audit revealed Sh356,711,806 had been misappropriated between January 2020 and June 2024.
According to the witness, Khatwani received clients' cheques intended for OTCL in his personal accounts while also allegedly creating fake invoices to conceal the scale of the theft.
The testimony from both witnesses paints a picture of a company where normal financial controls were bypassed and employees operated under irregular conditions.
Aswani's account of working without proper documentation and being paid in cash contrasts with Ramani's description of sophisticated financial diversion through multiple channels.
The case continues as the court examines additional evidence, including financial records and communication logs that allegedly show the extent of the financial manipulation.
Khatwani faces charges of stealing approximately Sh356 million that came into his possession through his position as company director.
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