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The said properties were purchased using Chase Bank funds without passing through a personal account.

Finance

Former Chase Bank directors stopped from selling property, cars worth millions

The said properties were purchased using Chase Bank funds without passing through a personal account.

NAIROBI, Kenya, Apr 13 – The High Court has stopped former Chase Banks directors from disposing or transferring their assets.

Justice Fred Ochieng has issued the order following an urgent application by Kenya Deposit Insurance Corporation (KDIC) which is seeking to repossess their assets bought using money looted from the bank.

The orders have been granted against Zafrullah Kahna, (founding director), Duncan Kabui (Group Managing Director of Chase Bank Board, Makarios Agumbi( General Manager Finance ) and James Mwaura (general manager assets).

KDCI   lodged the case following a finding that the former senior managers using local and foreign companies which they formed together with third parties fraudulently authorised the withdrawal of funds from the troubled bank for purchase of various properties.

Among the properties allegedly bought include a vintage Ferrari Dino for Sh45.5Million and a limited edition Chevrolet Corvette at Sh 12.7 million.

The said properties were purchased using Chase Bank funds without passing through a personal account.

Also purchased is an apartment in the Opera Grand residential tower in Dubai, next to the Burj Khalifa, the world’s tallest building, at a cost of Sh600 million .

Justice Ochieng’s directive restrains any interference with the said properties until the suit is concluded.

“Status quo will remain in the prevailing circumstances. For avoidance of any doubt , this order serves to stop the defendant from doing any of the things so that if a property was in the process of transfer or being mortgaged it should be put on hold,’” ruled justice Ochieng.

However the judge being mindful of the possibility that the order could have serious repercussions to third parties with whom the defendants maybe having dealings with, he allowed all parties to apply to participate in the proceedings.

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KDCI was directed to serve the suit papers on the former directors as soon as possible to facilitate an interpartes hearing on May 2.

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