Ex-Chase Bank boss granted Sh60m bail

Former Chase Bank boss Zafrullah Khan in court. PHOTO | PAUL WAWERU | NMG 

By MAUREEN KAKAH

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Summary

• Senior Principal Magistrate Martha Mutuku issued the order on Thursday, while indicating that she will give a detailed ruling next Monday.
• Mr Khan was charged on Wednesday with conspiring to defraud the lender about Sh1.7billion, stealing monies and failing to comply with provisions of the proceeds of crime and anti-money laundering Act.

Former Chase Bank boss Zafrullah Khan has been ordered to present two Kenyan sureties to deposit Sh60 million so as to secure his freedom pending trial of the nearly Sh1.7b fraud allegations he is facing.

Senior Principal Magistrate Martha Mutuku issued the order on Thursday, while indicating that she will give a detailed ruling next Monday.

The Magistrate allowed Mr Khan to make travel arrangements to the US to seek medical treatment within 30 days.

She however directed that Mr Khan should deposit his passport in court after the expiry of those days.

“Bond is hereby granted in the following terms; that the accused shall present two Kenyan sureties of Sh30 million each and who should be verified by the investigating officers,” she said.

The court further issued summons against his seven co-accused persons who were not present when he was charged. They are expected to present themselves to the police so as to be arraigned in court to plead to their charges.

They include Mr Duncan Kabui, Mr James Mwaura, Mr Makarios Omondi, Mr Abdul Ahmed, Mr Harish Shah, Ms Amira Claudia and Mr Mohamed Nasrullah.

Mr Khan was charged on Wednesday with conspiring to defraud the lender about Sh1.7billion, stealing monies and failing to comply with provisions of the proceeds of crime and anti-money laundering Act.

READ: Ex-Chase Bank boss remanded in jail again

He pleaded not guilty to the said charges. He was charged minutes after his lawyers Cecil Miller and Peter Wena lost their bid in seeking to have the plea-taking deferred.

The prosecution, through State lawyer Warui Mungai had told court on Wednesday that the accused is a flight risk.

“He is facing another criminal charge of defrauding depositors of Chase Bank huge sum of monies which is nearly over Sh6.9 billion as indicated to us by the Banking Fraud Investigation Unit (BFIU). He is being investigated in five other files,” court heard.

Mr Mungai added: “If he obtains his passport and gets bail, he will abscond trial because it is suspicious how the High Court order was obtained. If granted bail stringent rules should be put in place.”

Prosecution wanted him detained until the hearing of the case.

But Mr Miller and Mr Wena protested arguing that the request to have him denied bond should be dismissed and that it would be procedurally unfair to deny him the right to seek medication.