Wako lacks evidence to prosecute Charterhouse Bank

By Martin Mutua

Attorney General Amos Wako has no evidence on his desk to warrant prosecution of Charterhouse Bank, Parliamentary Committee on Finance has been told.

At the same time, Kenya's Chief Prosecutor Keriako Tobiko said as a person charged with investigations, he was also puzzled to read in the media that there is "credible evidence" against the bank yet he does not have it himself.

Tobiko further said the allegations that have been stated by the American ambassador to Kenya Michael Ranneberger regarding tax evasion and money laundering were serious offences bordering on economic sabotage.

Tobiko said the Attorney General’s office had not received any information regarding what the US envoy had alleged.

"The nature of the matter would have required the ambassador to volunteer and put aside the matters of diplomatic immunity and say that this is the evidence Mr AG can you act now," added Tobiko.

Tobiko told the committee that the manner in which the matter on Charterhouse Bank risks exposing the government to serious potential liability.

"All the offices of the Attorney General, CBK, police may be accused of malfeasance," he added.

And Deputy Solicitor General Muthoni Kimani accused the Central Bank of Kenya of being dishonest in singling out Charterhouse Bank for criminal prosecution yet there were 38 other banks that had violated the same Banking Act but no action was taken against them.

"From our records it appears there was no fairness in the treatment of Charterhouse Bank by the CBK," added Kimani who represented Wako at the meeting.

Favouritism cited

Kimani tabled the list of the banks as Akiba Bank, Chase Bank, City Finance Bank, Delphis Bank, Dubai Bank, Fidelity Commercial Bank, Imperial Bank, Paramount Universal, Southern Credit Banking Corp, Housing Finance Company of Kenya, Paramount Universal Bank, Imperial Bank, Standard Chartered Bank Kenya, K-Rep Bank, Equatorial Commercial Bank and Prime Bank ltd.

Others are Kenya commercial Bank, National Industrial Credit Bank, Equity Bank, Trans National Bank, Dubai Bank, Bank of Africa, African Banking Corporation, Stanbic Bank, Paramount Universal Bank, Victoria Commercial Bank, City Finance Bank, Barclays Bank, Guardian Bank, Commercial Bank of Africa, Southern Credit Bank, Middle East Bank, Credit Bank, Giro Commercial Bank, Chase Bank and Investment and Mortgages Bank ltd.

Kimani, who was accompanied by Tobiko and principal State Counsel James Warui, expressed shock that the CBK had declined to give the house committee the list of these banks.

"If CBK was being honest and wanted full disclosure they should have given this committee this information," she added.

Nominated MP Musikari Kombo sought to know from Tobiko whether it was possible to invite the envoy to the committee to shed light.

Tobiko responded saying diplomatic immunity should be waived because the matter at hand has weighty international concerns since money laundering was not a local issue.