13 September 2018

Kenya: Khan, MP Musimba Charged With Stealing Sh1.15 Billion From Chase Bank

Former Chase Bank chairman Mohammed Zafrulla Khan, Kibwezi West MP Patrick Mweu Musimba and his wife Angela Mwende Musimba have been charged with stealing over Sh1.15 billion from the lender.

The Banking Fraud Investigations Department (BFID), of the Central Bank of Kenya (CBK), presented the fresh case against Mr Khan and nine others to Nairobi Milimani Resident Magistrate Ms Hellen Onkwani on Thursday.

FOUR COUNTS

Only Mr Khan appeared to plead to the charges. The rest will appear on September 17.

Mr Khan is charged alongside Mr Musimba, Ms Musimba, former Chase Bank director and Chief Executive Officer Duncan Kabui, former General Manager of Corporate Credit James Mwaura Mwenja and former General Manager Makarios Omondi Agumbi. The other accused persons are Lucien Sunter Vlasman, Ronald Petrus, Porting Access Limited and Itecs Limited.

Mr Khan, who was presented to the court by lawyer Cecil Miller, denied four counts of conspiracy to defraud, steal and launder money.

Mr Miller applied for his client's release on bond saying he is facing two other similar cases arising from the same transactions.

"I wish to bring to the attention of this court that Mr Khan, the immediate former chairman of Chase Bank, is out on a cash bail of Sh2 million in two other cases arising from the same transactions," Mr Miller said.

HEART PATIENT

The lawyer told the magistrate that MrKhan was scheduled to fly to America for a third heart surgery this week but was summoned on September11 to appear before the Director of Criminal Investigations (DCI) for processing.

" Police signed the charges heet in a malicious move to bar Mr Khan from travelling to America for a third heart surgery. He has had two successful heart operations and had been booked to attend a third one this September," Mr Miller submitted.

He urged the magistrate to release Mr Khan on the strength of the Sh2million cash bail in respect of the other two cases.

" Mr Khan is not a flight risk. He had been allowed to travel to America fora heart surgery twice then returned his passport to the court as directed," the lawyer said.

The accused had been directed to deposit his travel document in court as a condition to secure his freedom in the two other cases.

NEW BAIL TERMS

State prosecutor Mr James Warui Mungai did not oppose the release of Mr Khan on bond but asked Ms Onkwani to impose new bail conditions since the present case is a fresh one.

Mr Mungai also applied to have a warrants of arrest issued against Mr Musimba, his wife, Vlasman and Petrus.

Mr Miller promised to present Gichu, Mwenja and Agumbe to the police for processing and produce them in court on September 17.

Ms Onkwan directed that Mr Khanto be remanded until Monday when she will rule on his bond application.

THE CHARGES

Mr Khan and the nine others are charged with stealingSh1,150,125,587.20 from Chase Bank between January 23 2015 and March 2016.

Mr Khan has been separately charged with stealing the money by virtue of his employment.

The ten are also charged with conspiring to steal the money by disbursing the said amounts to Porting Acess Limited and Itecs Limited without following the payments process as stipulated under the Finance Policy of the bank.

Khan, Mwenja, Kabui and Agumbi also face money laundering charges by transferring Sh740,442,687from the collapsed bank to Paramount Universal Bank.

The five also face another money laundering by removingSh409,682,900 from Chase Bank toKenya Commercial Bank.

Musimba, his wife, Mwende, Sunter, Vlasman, Petrusand the two companies are also charged with money laundering by allegedly benefiting from the said Sh409,682,900 which had been moved from Chase Bank to KCB, Kipande House branch.

The seven (Musimba, Mwende, Sunter, Vlasman, Petrus Porting and Itecs) are accused of benefiting from proceeds of crime by transferring Sh409,682,900 from Chase Bank to Paramount.

The case will be mentioned on September 17 for Musimba, Mwende, Sunter, Petrus, Mwenja, Kabui, Agumbi, Porting and Itecs to enter their pleas.

Former Chase Bank chairman Mohammed Zafrulla Khan, Kibwezi West MP Patrick Mweu Musimba and his wife Angela Mwende Musimba have been charged with stealing over Sh1.15 billion from the lender.

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