Chase Bank fraud victims allowed to cross-examine directors

By Sheila Mutua On Wed, 9 Oct, 2019 15:11 | 1 min read
Chase Bank
A Chase Bank branch. PHOTO | FILE

The victims in Sh1.6 billion Chase Bank fraud have been allowed to cross-examine the former directors who were charged with the bank’s collapse.

Milimani Chief Magistrate Martha Mutuku on Wednesday allowed an application by Muma & Kanjama advocates seeking to allow the victims to cross-examine former Chase Bank chairman Mohammed Zafrullah Khan and other directors.

“We will cross examine the accused persons in the way that their rights to fair hearing will not be infringed,” said Kanjama.

The magistrate ruled that the accused will not suffer prejudice because of the interrogation in court.

“It has been observed that a victim is an interested party in this case and they also have a right to have their views presented,” ruled Mutuku.

Lawyers Andrew Muma and Charles Kanjama had made an application to be enjoined in the case on behalf of the victims.

“Sometimes in December, 2015, the firm of Muma & Kanjama Advocates received Sh194,882,865.45 to hold on behalf of Good News Church of Africa and Gospel Furthering Bible Church Trust Registered Trustees in respect of a land sale transaction,” said Muma.

Muma said Sh100 million was deposited in first account, Sh 60,882,865.45 in second account and Sh30,000,000.00 in third one.

The lawyer claimed that, as a depositor at Chase Bank, he lost 25 per cent of the said Sh200 million when the bank went into receivership.

“We want to be enjoined in the instant proceedings as victims so that they can ventilate their concerns in the course of proceedings,” said Muma.

 The accused are charged with conspiracy to defraud the lender over Sh1.6 billion

This follows amendment of the charges by the prosecution.