Team wants Charterhouse Bank reopened

A parliamentary committee has now recommended the reopening of Charterhouse Bank by the Central Bank of Kenya but under a new restructured mandate.

At the same time, the committee absolved the bank from allegations of money laundering, tax evasion and drug trafficking, saying no evidence had been adduced before it to prove that.

It says the Criminal Investigations Department director and Anti-Narcotics Unit officers who appeared before it confirmed they had never investigated the bank in relation to drugs.

On money laundering, the report says Proceeds of Crime and Anti-Money Laundering Act came into force on June 28, and, therefore, money laundering was not a crime in Kenya at the time.

ABSOLVED BANK

And on tax evasion, the report further says Kenya Revenue Authority Commissioner-General absolved the bank, saying it had been filing tax returns until 2008 and Pay As You Earn monthly until May.

The KRA boss also told the team bank customers had been investigated and on the whole, KRA had no issues of tax evasion with the bank.

The Committee on Finance, Planning and Trade chaired by Nambale MP Chris Okemo says in the report he tabled in the House yesterday that Central Bank should execute the restructuring agreement, which it signed with Charterhouse Bank on August 28, last year.

"Both the Central Bank and Charterhouse Bank having executed the restructuring agreement on August 28, last year, should with immediate effect take all necessary steps to implement the said agreement to its conclusion," the committee recommends.