Former Chairman of Chase Bank Kenya Zafrullah Khan has finally been released after posting a 2 Million shillings’ bond.
This came after a Nairobi court agreed to lower Mr. Khan’s cash bail to 2 million shillings. He has been in jail for the past nine days.
Originally, the court had ordered Mr. Khan to deposit two Kenyan sureties totaling to 60 million shillings for him to secure his freedom. Through lawyer Cecil Miller, the “banker” told the court that he was ill and could not meet the bail terms imposed on him, saying they were too harsh.
Last week, Mr. Khan was charged with conspiring to defraud depositors of 1.7 billion shillings and is also under investigation over allegations of accounting irregularities, theft, money laundering and his role in the bank’s collapse in April 2016.
Troubled Chase Bank had sued its former chairman and former senior managers seeking to recover billions of shillings they have been accused of illegally siphoning from the lender during their more than a decade at the helm.
The bank, in a suit which had been filed through its lawyer Philip Murgor, says former chairman Zafrullah Khan, former managing director Duncan Kabui, former general manager corporate assets James Mwaura and former general manager finance Makarios Agumbi used their positions to illegally acquire and benefit from the bank’s assets it now seeks to recover.
Chase Bank further accused Mr. Khan of living a flashy lifestyle off plum bank accounts and prime real estate property he acquired using illicit proceeds from the collapsed lender.
In the same suit, the bank stated that, aside from being a calculative investor with a large portfolio in many sectors of the economy, the former chairman also had a taste for luxury, offering as evidence his ownership of two Sh60 million shillings’ top-of-the-range cars — a limited edition Corvette and a Ferrari Dino.
The vehicles were registered in his wife Shehla Khan’s name, who also received 3.5 million shillings for upkeep, which Chase Bank now says was illegally withdrawn from its Central Bank of Kenya settlement account.