Three Chase Bank Directors arraigned over fraud

Three former Chase Bank Directors, Duncan Kabui, James Mwaura Mwenja, Makarios Omondo Agumbi have been arraigned in court and charged with conspiracy to defraud the bank of over Ksh 1.6 billion.

The prosecution reads that between August 28, 2009 and March 31, 2016 at Chase Bank headquarters in Nairobi, jointly with another not before court conspired with intent to defraud Chase Bank Limited by means of falsely pretending that the disbursement of Ksh 1.6 billion they effected from internal account of Chase Bank to the accounts of Camelia Investments Limited, Cleopatra Holdings Limited, Golden Azure Limited and Colbrook Holding Limited were genuine loan facilities to the entities and were disbursed in the ordinary process of loan process flow.

Duncan Kabui Gichu is facing three other counts of stealing over Ksh 3 .1 billion from the said bank.

The trio pleaded not guilty before Principal Magistrate, Martha Mutuku, and were released on a cash bail of Ksh 2 million each.

The case will be mentioned on August 3.

Last month, former Chase Bank chairman, Zafrullah Khan, pleaded not guilty to charges of defrauding the lender.

The bank was placed under receivership for 12 months after experiencing liquidity difficulties leading to a loss of millions of shillings for the financial year 2015.