Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

Boinnet orders arrest of NBK, Chase Bank executives

POSTA-NBK

The Inspector General of Police has ordered the immediate arrest of National Bank of Kenya managers and Chase Bank executives that were suspended following financial mismanagement and alleged fraud theft in the two banks.

The six NBK officials include former Managing Director Munir Mohamed, Executive Director Boniface Biko, George Jaba, Mohamed Abdalla, Wycliff Kivunira and Chris Kisire.

“Following the announcement by the Governor of Central Bank of Kenya regarding unethical conduct by certain bank directors and managers, I have therefore ordered the immediate arrest of the following persons, or in lieu, they must present themselves to the Directorate of Criminal Investigations along Kiambu road before 3.30pm today,” says the National Police Service IG Joseph Boinnet.

Embattled immediate former Chase Bank chairman Zuffrullah Khan and suspended Group Managing Director Duncan Kabui have also been ordered to report to the CID Headquarters before 3.30pm today failure to which they will be arrested.

The warrant of arrest comes a day after CBK appointed Kenya Deposit Insurance Corporation (KDIC) as receiver of Chase Bank following revelations of financial malpractice.

Two weeks ago, NBK board of directors suspended the six managers pending an independent internal audit. The six have been surrounded by numerous accusations including illegal loan disbursements, high number of staff turnover and audit-related queries.

In addition to the MD and the Executive Director, the four other managers were in charge of Finance (Kivunira and Kisire), ICT (Abdalla) and Credit Control (Jaba).

Boinnet has also said the police have arrested David Mukunzi Zawadi for ‘misusing social media to disseminate falsehoods about the banking sector.’

“Some unscrupulous members of the public have taken to social media to spread unfounded rumours and conjecture aimed at causing unnecessary fear and panic…we accordingly wish to caution members of the public to be wary of such messages and refrain from disseminating the same.”

Advertisement. Scroll to continue reading.

The CBK Governor yesterday said inaccurate social media reports contributed to Chase Bank experiencing liquidity issues forcing the regulator to move in to secure the bank’s assets and operations.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...