Top manager predicted 10 years ago that he would go to jail over bank fraud

For over ten years, former Imperial Bank Chief Financial Officer (CFO) James Kaburu knew he was dancing on the brink of a precipice.

According to an affidavit adduced in court and obtained by The Standard on Sunday, Mr Kaburu confessed to the bank’s directors that he was sure, over ten years ago, that he would go to jail over runaway fraud perpetrated by former bank MD Abdulmalek Janmohamed.

In a taped conversation with directors Anwar Anjee (member) and Alnasir Popat (chairman), Kaburu confessed to engaging in “creative accounting” to throw the board, auditors and Central Bank of Kenya inspectors off-balance in case they smelled a rat.

“I am (in a worse position), and I told him about 10 years ago that I can see myself going to jail,” he told Hajee and Popat in the recording allegedly made on September 24^th last year.

When Popat, son of the bank’s co-founder Abdul Karim Popat, appeared to doubt it, Kaburu pressed on assuredly: “That one I told him.” In the conversation, the CFO says the late MD kept assuring him he was going to sort out the mess. He believed him.

“Even as late as last year I asked him ‘Mr Janmohamed, are you sure? Are you sure you will save us?” he says to which the late MD allegedly assured him: “I cannot let you down. I can’t let the institution down. This I am going to sort out.”

Kaburu also claims in the conversation that he kept telling his colleague Naeem that their luck will run out at some point.

“We knew. I knew and I kept on telling Naeem that we’ll go to jail but then we said how do we get out? We are already in it, how do we come out?”

He also suggests leaving Janmohamed and his evil scheme at that point would have been difficult: “It’s like somebody is dying and you are telling him to go die alone.”

Eventually, and when the MD was dying of heart attack, they were not in sight. When asked why he never confided in at least one director he could trust of the happenings in the bank, Kaburu says he feared Janmohamed would know and victimise him.

“Even in the office, Janmohamed had his own intelligent way of knowing things. Even the small things done in the office he used to know, how, I don’t know. And he used to be very ruthless, that one I know,” he says.

Pressed on what is the worst thing Janmohamed could have done to him, Kaburu points to police harassment.

Kaburu: He would use the police and the money to arrest you, that one we know.

Popat: But James, you are a clean guy! Why would you worry about the police coming and arresting you when you have done... this institution is at your heart!

Kaburu: But you see Mr Gener... Mr Popat, see the police can always plant a case against you so you.. because if for example the police say Mr Hajee has got say bhang, they will do it, they will come with it, or he has fake notes, they will do it. So I didn’t want to get that problem now.”

Popat: So were you sacred of that?

Kaburu: (Hesitates) Mr Chairman I don’t want to go and be arrested because the way they beat you up, it’s not, it’s not the best thing...” Kaburu’s apprehension with the long arm of the law was not without merit. Last month he was charged in court alongside Shah. On Tuesday, they were granted Sh3 million cash bail.