Former Chase Bank directors charged with Sh2 billion fraud

Former Chase Bank directors (from left) Makarios Agumbi, James Mwenja, and Dancun Kabui in court to answer charges of defrauding the bank. [George Njunge]

Three former Chase Bank directors have been charged with conspiracy to defraud the bank of billions of shillings, leading to its collapse in 2015.

Duncan Kabui, James Mwenja, and Makarios Agumbi are alleged to have conspired to conceal money laundering in the bank involving millions of shillings.

In the first count, they were accused of defrauding the bank by alleging that they had cleared Sh1.6 billion loans to various companies.

“Between August 2009 and March 2016 at Chase Bank headquarters in Nairobi, you conspired, with intent to defraud the bank, by pretending that the disbursement of Sh1.6 billion had been transferred from internal account of Chase Bank to the accounts of Camelia Investments Limited, Cleopatra Holdings Limited, Golden Azure Limited, and Colbrook Holding Limited,” read the charge sheet.

Kabui was also charged with stealing over Sh700 million from the bank between February 2012 and December 2015.

Mwenja and Agumbi were accused of stealing Sh56 million using their positions as general managers. They were further charged with failing to report transactions involving money laundering proceeds totalling Sh1 million by failing to maintain the records of customers who were transacting the money.

They pleaded not guilty to the charges and were released by Principal Magistrate Martha Mutuku on a cash bail of Sh2 million each. The magistrate, however, ordered that they deposit their passports in court, report to the investigating officer whenever required, and not leave the court’s jurisdiction until the case is concluded.

Last month, the bank’s former chairman, Zafrullah Khan, was charged with defrauding the bank of millions of shillings.

In April, Justice Fred Ochieng froze the accounts of the former directors following an application by the Kenya Deposit Insurance Corporation, which sought to repossess their assets bought using money looted from the bank.

The orders were issued against Khan (founding director), Kabui, Agumbi, and Mwaura.