NAIROBI, Kenya, Jun 28 – Former Chase Bank chairman Zafrullah Khan is expected in court Wednesday to face money laundering and theft charges.
Khan was arrested by detectives from the Banking Fraud Investigations Unit and spent Tuesday night in custody, according to police.
He is among seven senior bank managers whom the Director of Public Prosecutions directed should be prosecuted over collapse of the bank.
The bank was placed under receivership for 12 months after experiencing liquidity difficulties leading to a loss of Sh686 million for the financial year 2015.
Managing director Duncan Kabui and chairman Zafrullah Khan resigned following public concerns over the health of the bank.
A court heard that the former Zafrullah bought his wife Shehla Khan a vintage Ferrari Dino for Sh45.5mn.
It also emerged that he bought his wife a limited edition Chevrolet Corvette for Sh12,755,133 using Chase Bank funds without following due process.