Mr Zafrullah Khan when he appeared before court today.
By Our Correspondent
He pumped the funds in buying prime real estate and constructing properties in Nairobi and abroad
Ousted Chase Bank chairman Mohammed Zafrullah Khan was today Wednesday 28 June, 2017 charged with conspiring to defraud the bank of Sh1.7 billion.
Police officers from the Banking Fraud Investigations Unit had on yesterday night arrested and detained him after the Director of Public Prosecutions Keriako Tobiko ordered his prosecution in connection to the loss money at the financial institution.
Also on the charge-sheet ware several counts of stealing from Chase Bank and one count of failing to comply with provisions of the Proceeds of Crime and Anti-Money Laundering Act.
Mr Khan was also charged with failing to report suspicious transactions
He pleaded to the charges soon after Senior Principal Magistrate Martha Mutuku ruled that arguments presented in court did not indicate that the charge sheet had any defects and that the High Court did not issue orders stopping him from taking plea.
Zafrullah Khan, the former chairman of Chase Bank, was the chief architect and biggest beneficiary of some Sh11 billion, according to the Business Daily, that systematically looted from the troubled mid-sized lender.
Mr Khan is said to have siphoned the cash to entities he co-owned with suspended managing director Duncan Kabui.
He pumped the funds in buying prime real estate and constructing properties in Nairobi and abroad. The huge outflows from Chase Bank peaked in 2012.
When financial Consultancy firm Deloitte probed deeper into the transactions early this year, the duo disguised them as loans disbursed in line with Islamic banking, the auditing firm told a National Assembly committee probing the collapse of the bank.
“These companies are owned by the chairman, over 90 per cent of the ownership of those companies was the chairman and 10 per cent was the group MD,” said Fredrick Aloo, a partner at Deloitte & Touche in charge of auditing Chase Bank’s accounts.
“There was no single documentation to show how the money was advanced from the bank to purchase those properties,” Mr Aloo said in his submissions.
Deloitte was summoned to appear before the National Assembly’s Trade, Finance and Planning committee which is investing the circumstances leading to the collapse of Chase Bank, which had Sh73 billion in deposits and 170,000 customer accounts.
Below is a graphic of how Mr Khan spend his billions as published by the Business Daily.
PHOTO: BD Graphics. (Additional info courtesy of Business Daily)
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