By BRIAN WASUNA, bwasuna@ke.nationmedia.com
In Summary
- A warrant of arrest has been issued against the founder of collapsed Dubai Bank Hassan Zubeidi for failing to heed a court directive to pay Sh7 million debt he swindled a Nairobi firm.
- The High Court deputy registrar Thursday granted a request by Jazira Agencies for arrest of Mr Zubeidi, piling pressure on the Dubai Bank owner who is also under investigation for alleged misuse of depositors’ funds at the collapsed lender.
- The firm on Monday sought Mr Zubeidi’s arrest because there are no assets it could find in the Dubai Bank founder’s name.
A warrant of arrest has been issued against the
founder of collapsed Dubai Bank Hassan Zubeidi for failing to heed a
court directive to pay Sh7 million debt he swindled a Nairobi firm.
The High Court deputy registrar Thursday granted a request
by Jazira Agencies for arrest of Mr Zubeidi, piling pressure on the
Dubai Bank owner who is also under investigation for alleged misuse of
depositors’ funds at the collapsed lender.
Mr Zubeidi was in 2010 ordered to pay Sh4 million
to Jazira as compensation for a flopped deal that was to see him supply
the firm with US dollars.
Justice Wycliffe Mwera found that the Dubai Bank
owner had failed to deliver the currency as agreed. The amount has since
grown to Sh7 million because of interest.
“This is to command you to arrest the said Hassan
Ahmed Zubeidi unless he shall pay the sum as noted together with
executing officers’ expenses and fees, if any, to bring the said
judgment debtor before the court with all convenient speed,” the arrest
warrant reads.
Jazira attempted to attach a number of household items and a car used by Mr Zubeidi in 2011.
The Dubai Bank founder’s son, however, objected the
move, arguing that he owned the items that were to be attached. As a
result, Jazira only managed to get a court order allowing it to sell
household items and managed to secure a TV, gas cooker and a fridge —
which was not enough to recover the Sh4 million.
The firm on Monday sought Mr Zubeidi’s arrest because there are no assets it could find in the Dubai Bank founder’s name.
The Jazira arrest warrant comes as Mr Zubeidi faces possible arrest over the collapse of Dubai Bank.
He has already been grilled by Directorate of
Criminal Investigations officers who are expected to make a finding on
whether he should be charged with interfering with Dubai Bank savers’
accounts, contrary to the Banking Act.
The Central Bank of Kenya shut down Dubai Bank in
August, citing serious cases of parallel banking, a mountain of
unsecured loans that were not being serviced, interference with client
accounts and a lack of an organisational chart as provided for by the
law.
The Kenya Deposit Insurance Corporation, which has
been tasked with liquidating Dubai Bank has instituted a civil case
against Mr Zubeidi in which it wants to attach his personal assets to
recover funds lost in an elaborate scheme he used to enrich himself.
KDIC says in a status report of the collapsed
lender that Mr Zubeidi used depositors’ funds to guarantee his private
companies some Sh1.6 billion.
The KDIC suit has seen the Anglican Church accuse
Mr Zubeidi of forging title deeds for land it bought from him with an
aim of grabbing the property.
Dubai Bank has been cited by KDIC for disregarding
customer instructions to conduct transfers. The KDIC says the lender
failed to remit Sh41 million of clients’ money despite receiving
instructions to do so.
No comments :
Post a Comment