Ex-Dubai Bank managers in court over money laundering

Three former Dubai Bank managers have been arraigned before Nairobi Chief Magistrate Daniel Ogembo to face money laundering charges.

The three former managers of the collapsed bank, Abdul Hafedh Zubeidi, Ali iBashir Sheikh and Professor Wilson Hassan Nandwa are said to have transferred over Sh12 million of the banks fund through a dummy company Runway Entertainment private limited in 2014.

The prosecution alleges that the trio knew the money was stolen from the bank for purposes of concealing or disguising the illicit origin of the money.

This marks the latest charge against the banks directors and senior managers. Just last week two directors and three managers were charged with conspiring to defraud Bank of Africa Sh48 million.

The central bank of Kenya placed Dubai Bank under receivership in August 2015 on grounds of serious cases of parallel banking interference with client accounts and a large number of unsecured loans.

The three also face another count of failing to comply with the provisions of section 45 (i) of the Proceeds of Crime and Anti money laundering act 2009.

All pleaded not guilty and were released on a cash bail of Sh3 million shillings each.

The case will be mentioned on the 18th of August, with the hearing date set for the 24^th of the same month.