Former Chase Bank chairman Mohammed Zafrullah Khan was on today charged with conspiring to defraud the bank of close to Sh1.7 billion
He was also charged with several counts of stealing from the bank and one count of failing to comply with provisions of the Proceeds of Crime and Anti-Money Laundering Act.
At the insistence of the Central Bank, Khan & Mr Kabui stepped down as the bank’s chairman and CEO respectively over the credibility of the bank’s financial statements.
Mr Khan is accused of having falsified Chase Bank’s accounts to illegally draw Sh7.9 billion in personal loans without sufficient security as required by the Central Bank of Kenya.
As a result, the Central Bank of Kenya has started legal action against him and others in an attempt to recover the stolen cash.
State prosecutor Keriako Tobiko has also opened a series of proceedings against most of Chase Bank’s former executives suspected of malicious acts and ruinous management.
Central Bank of Kenya (CBK) has since seized property belonging to the Bank’s former executives including Mr Khan’s family.