Shocking details have emerged of how Chase Bank bosses were involved in unscrupulous dealings under an elaborate scheme that saw the bank lose billions of shillings to fund their lavish lifestyles.
The troubled bank (which is currently under receivership) through a suit filed in court on Wednesday, seeks to recover Sh6.5 billion and prime assets from its top former directors and shareholders under a pretext that they were owned by Chase Bank.
Topping the list of beneficiaries is former chairman Zafrullah Khan whom is accused of living a flashy lifestyle at the expense of the bank’s accounts and prime real estate property through illegal proceeds from the lender.
Expenses in billions
Described as the main architect of the scheme, Khan incurred Sh2.2 billion from the bank in expenses during his tenure at the helm of the lender.
This included a Sh1 billion performance bonus payment that was set to be spread over five years but which was paid under a record period of 45 days.
He was also paid Sh75 million in consultancy fees which was done in monthly installments of USD50,000.
The former chairman bought his wife Shehla Khan a vintage Ferrari Dino for USD 455,000 (Sh45,500,000 ) and a limited edition Chevrolet Corvette for $127,551 (Sh12,755,133 ) using Chase Bank funds without passing through a personal account.
The bank also bought him 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.
Chase Bank also paid $2.1 million (Sh210 million) to AMB Real Estate to build a house for Khan in Michigan, USA.
Freezing of accounts
Chase Bank has also sought the freezing of the accounts of Khan and 19 others after the shocking revelations of fraud.
The Central Bank of Kenya (CBK) last month extended the receivership of Chase bank by a further six months.
The bank was initially placed under receivership on April 7, 2016, after the emergence of questionable lending practices.
Customers of the bank can currently access only Sh1 million of their funds but can continue making deposits.