NBK, Chase Bank ex-bosses face arrest over cash woes

April 8, 2016 3:25 pm
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Others to be arrested are immediate former Chase Bank chairman Zuffrullah Khan and Duncan Kabui who was the managing director/MIKE KARIUKI
Others to be arrested are immediate former Chase Bank chairman Zuffrullah Khan and Duncan Kabui who was the managing director/MIKE KARIUKI

, NAIROBI, Kenya, Apr 8 – Six senior managers at the National Bank of Kenya and two immediate past bosses at Chase Bank are now facing arrest over fraudulent activities at the financial institutions.

Those facing immediate arrest on the instructions of Inspector General of Police Joseph Boinnet are Munir Moahmmed of National Bank, Boniface Biko, Mohammed Abdalla, George Jaba, Wycliffe Kivunira and Chris Kisire.

Others to be arrested are immediate former Chase Bank chairman Zuffrullah Khan and Duncan Kabui who was the managing director.

The eight were given the option of handing themselves in.

“They must present themselves to the Directorate of Criminal Investigations Headquarters along Kiambu Road, before 3.30pm today, the 8th day of April 2016,” said Inspector General of Police Joseph Boinnet in a statement.

The action follows revelations of misconduct at the two financial institutions.

About a fortnight ago, the government owned National Bank of Kenya came under the spotlight after the bank’s board sent it top managers on compulsory leave owing to management issues before posting a Sh1.18 billion in losses in its 2015 full year after tax results days later.

Chase Bank on the other hand has been in the public this week following the Central Bank’s decision to place the institution under receivership. Earlier this week, the bank faced similar woes to those of National Bank after it posted huge losses which was followed by mass fund withdrawals by depositors.

– Social Media Action –

Boinnet has at the same time cautioned the public against spreading falsehoods on social media and creating unnecessary fear and panic.

“It’s one thing to alert acquaintances about matters that are truthful and factual, but we shall not allow persons driven by malicious considerations to peddle falsehoods to mislead members of the public.”

An arrest has already being made over such postings with David Muikunzi Zawadi being taken into custody.

“He will face relevant charges related to misuse of social media to disseminate falsehoods about the banking sector,” Boinnet said.

“We accordingly wish to caution members of the public to be wary of such messages and refrain from disseminating the same, members of public should obtain clarification from the relevant authorities.”

Central Bank of Kenya Governor Patrick Njoroge Thursday said that Chase Bank’s misfortune could be blamed on grim messages posted on social media that fuelled mass withdrawals and consequently the bank’s receivership.

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