Chase Bank has swiftly moved to the high court seeking to recover over 6.5 billion shillings alleged to have been swindled by its former directors and shareholders.
The bank in its suit papers wants the court to direct the former directors to avail full and true list of their assets both movable and immovable assets.
It also want court orders restraining the former directors from operating their bank accounts.
Chase bank is alleging that the defendants acquired their assets directly or indirectly with the banks money and fraudulently authorized and approved irregular and undisclosed loans disbursed from the bank.
That the former directors fraudulent actions have already caused hardship, loss and damage to the depositors, bond holders and the public severely who all stands to suffer irreparable damage should the amount not be recovered immediately.
Chase Bank says that it owes a duty to its customers and depositors.
“The defendants are liable to deliver up all property in their possession delivered directly or indirectly from money misappropriated from the plaintiff, “reads the petition.
The bank claims that the subsequent purchase of properties in the absence of board approval was evidently for their own benefit to the exclusion of the bank.
Chace bank claims that the acts and omissions of the defendants constitute gross breaches of their duty of care as a direct and proximate result of these breaches the bank suffered monumentous loss of billions of shillings, comprising mainly depositor’s funds.
In the court documents filed before the court, Chase Bank argues that the instructions for the purchase of the properties were issued by the Zafrullah Khan-the former managing director.
Khan is alleged to have paid 12 million shillings to Blasius Chevrolet Cadillac Inc. for the purchase of a Limited Edition Corvette registered in the name of Shehla Khan-Khans wife.
Chase Bank claims that its former directors jointly and severally fraudulently authorize the withdrawal, disbursement and utilization of its funds for the purchase of properties.
The bank in its court documents filed at the court claim that over 40 billion million shillings.
An order directing the defendants do render an account of all the sums they illegally and irregularly obtained from chase Bank.
The bank further claims that Zafrullah Khan stole funds and used them for personal ventures and as result the bank is facing liquidity crisis.
“There was no comprehensive records of all withdrawals by Khan. Most of the transfers were authorized by the Duncan Kabui and James Mwaura defendants on instruction of Khan,” states the petition.
Some of the respondents named in the case include Zafrullah Khan , Duncan Kabui, Makariosa Agumbi and James Mwaura.