Arrest warrants issued for Dubai Bank officials

November 20, 2015 1:49 pm
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Chief Magistrate Daniel Ogembo issued the summons against Chief Executive Officer Butt Binay, Operations Manager Dhiraj Kumar as well as directors Hafedh Zubeidi, Ali Bashir Sheikh and Wilson Nandwa/file
Chief Magistrate Daniel Ogembo issued the summons against Chief Executive Officer Butt Binay, Operations Manager Dhiraj Kumar as well as directors Hafedh Zubeidi, Ali Bashir Sheikh and Wilson Nandwa/file
NAIROBI, Kenya, Nov 20 – Warrants of arrest have been issued against five Dubai Bank Kenya officials suspected of fraud after they failed to honour court summons.

Chief Magistrate Daniel Ogembo issued the summons against Chief Executive Officer Butt Binay, Operations Manager Dhiraj Kumar as well as directors Hafedh Zubeidi, Ali Bashir Sheikh and Wilson Nandwa.

Binay and Kumar have been charged with the theft of Sh12 million belonging to Dubai bank between April 28, 2014 and September 14, 2014.

“On diverts date between 28th April 2014 and 14th September 2014 at Dubai Bank Moi Avenue branch in Nairobi district within Nairobi County, being servants of Dubai Bank Kenya to wit Chief Executive Officer and the Operations Manager stole US$210,267.20 equivalent to 12,639,006 the property of the said Dubai Bank which came to your possession by virtue of your employment,” the charge sheet read.

Other directors are charged with failing comply with the provisions of the crime and anti-money laundering act.

“On diverts date between 28th April 2014 and 1st September 2014 at Dubai Bank in Nairobi within Nairobi County jointly with others not before the court being directors of Dubai Bank Kenya Limited and a Limited Liability Company respectively failed to comply with the requirements of section 44, 45 and 46 of the proceeds of crime and anti money laundering Act 2009 to wit failure to comply due diligence of a customer before opening of account no 81176973 in the name of Runway Entertainment Limited Company which does not exist,” the charge sheet said.

The matter will be mentioned on December 2, 2015.

The Central Bank of Kenya (CBK) placed Dubai Bank Kenya under receivership in August following what it termed as “serious liquidity challenges and capital deficiencies.”

The regulator appointed the Kenya Deposit Insurance Corporation (KDIC) as a receiver for Dubai Bank Kenya for a period of 12 months.

“On August 24, 2015, KDIC submitted a report to CBK recommending that Dubai Bank Kenya Limited be liquidated. The KDIC report indicates that considering the magnitude of weaknesses of Dubai Bank Kenya Limited, liquidation is the only feasible option,” Central Bank stated.

On August 18, CBK had indicated that with liquidation process, all insured deposits shall be paid by KDIC up to a maximum of Sh100,000 per depositor.

Any balances above Sh100,000 will equitably paid as and when the liquidator accumulates enough funds from sale of assets of the collapsed bank and recoveries from outstanding loans and debts.

“KDIC will release information about the liquidation of Dubai Bank Limited and payment of depositors in due course,” CBK said.

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