Former Chase bank directors charged afresh

NAIROBI, KENYA: Ex-Chase Bank Chair Mohammed Zafrullah Khan and other directors accused of conspiracy to defraud the lender over Sh1.6 billion have been charged afresh.

This follows amendment of the charges by the prosecution.  The court was also informed that lawyers representing some of the accused Amira Claudia Wagner Khan and Mohammed Nasrullah Khan were seeking a reduction of bond terms.

Through lawyer Cecile Miller, the accused made an application for reduction of bail claiming that they are facing only two counts.

“Charges against the two accused are few and one of them is unwell, I pray that the bond terms against them be reduced,” said Miller.

Other directors who are facing similar charges are Duncan Kabui Gichu, James Mwaura Mwenja, Makarios Omondi Agumbi, Mohammed Nasrullah Khan.

Magistrate Martha Mutuku reduced the bail terms to Sh 1 Million and cash bail to Sh 500,000. She said that since the two accused face only two charges, she will consider their application.

“The prosecution did not oppose the application and since the two face only two counts in the charge sheet, I will consider reducing their bail terms,” said Mutuku.

The accused are said to have defrauded Chase Bank over Sh 500,000 on diverse dates between August 28, 2009 and March 31, 2016.

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 Sh 483 million from the bank between February 2012 and December 2015.

Khan, Kabi and Camella investments were accused of stealing Sh 483 million using their positions as directors.

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.

The others pleaded not guilty to the charges and were released by Principal Magistrate Martha Mutuku on a cash bail of Sh 2 million each.

The case will be heard on July 17, 2018.