CBK moves to freeze former Dubai Bank chairman's assets

Money Markets

Dubai Bank chairman Hassan Zubeidi. FILE PHOTO | PAUL WAWERU | NATION 

By BRIAN WASUNA

In Summary

• The companies associated with Mr Zubeidi are Africa Energy, Kamp General Engineering Company, Maestro Properties, Suleiman Enterprises and Kemu Salt Parkers Production Company.
• Justice Ogola will hear the case on October 19th and has ordered Mr Zubeidi to file his responses before then.

The Central Bank has moved to court to freeze the assets of former Dubai Bank chairman Hassan Zubeidi over his suspected irregular borrowing from the bank.

CBK claims Mr Zebeidi has over the years irregularly acquired loans from the bank which he used to buy several properties around the country.

The regulator wants to freeze 334 properties owned by Mr Zubeidi through five companies in which he is the majority shareholder.

DECLINED

Justice Eric Ogola has however declined to issue the freeze order until he has heard from both parties.

The companies associated with Mr Zubeidi are Africa Energy, Kamp General Engineering Company, Maestro Properties, Suleiman Enterprises and Kemu Salt Parkers Production Company.

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CBK has enjoined the five firms in the suit.

Justice Ogola will hear the case on October 19th and has ordered Mr Zubeidi to file his responses before then.

The Central Bank announced the collapse of the bank in August, citing violations of banking laws and regulations, including failure to maintain adequate capital and liquidity ratios as well as provisions for non-performing loans and weak corporate governance structures.