Victims in Sh1.6 billion Chase Bank case to cross-examine accused

Lawyers will cross-examine ex-Chase Bank chair Mohammed Zafrullah Khan and other directors

In Summary
  • They will cross-examine accused where they demonstrate their interests were affected
  • Prior to Chase going into receivership, law firm had three accounts at the bank
Chase Bank
Image: FILE

The court has allowed two victims in the Sh1.6 billion Chase Bank fraud case to cross-examine the accused persons.

Milimani chief magistrate Martha Mutuku yesterday granted an application by Andrew Muma & Kanjama Advocates to cross-examine ex-Chase Bank chair Mohammed Zafrullah Khan and other directors.

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

The application was filed on May 30, 2019 under certificate of urgency.

Magistrate Mutuku ruled that the lawyers for the victims should only cross-examine the accused where they demonstrate that their interests have been affected.

“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,” Mutuku said.

Lawyers Andrew Muma and Charles Kanjama had applied to be enjoined in the case so that they could represent the victims.

Muma said that prior to Chase Bank going into receivership, their firm had three accounts at the bank.

“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,” Muma said.

They said Sh100,000,000 was deposited in one account, Sh60,882,865.45 in another and Sh30,000,000.00 in a third.

Muma in his affidavit said panic engulfed customers of the bank who withdrew over Sh8 billion, which occasioned financial distress to the bank eventually pushing it into receivership. But the law firm still held a sum of Sh200 million in the bank.

He said that as a depositor at Chase Bank they lost 25 per cent of the Sh200 million when the bank went into receivership.

The accused have been charged with conspiracy to defraud the lender of over Sh1.6 billion

Other directors facing similar charges are Duncan Kabui Gichu, James Mwaura Mwenja, Makarios Omondi Agumbi and Mohammed Nasrullah Khan.

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