Collapsed Trade Bank was lent Shs 200 million in mysterious circumstances and no record was kept of the transaction, the Goldenberg inquiry heard yesterday. The bank was ostensibly receiving the cash boost to save it from collapse and stem an imminent crisis in the banking industry.
The bank’s liquidation agent Mr Daniel Ng’atuny said that books of accounts at both Trade Bank and the Deposit Protection Fund were silent on the matter. Commission chairman Mt Justice Samuel Bosire directed the witness to investigate the matter further and present more evidence on the matter today.
Trade Bank was later to receive 600 million from the fund with the magnificent Yaya Centre complex provided as security. The 600 million, evidence shows, went through Trade Bank to former Cabinet Minister Nicholas Biwot and the HZ Group of companies, associated with him. The Deposit Protection Fund later lost a court tussle with the HZ Group over the ownership of Yaya Centre and has never recovered the money.
Trade Bank was caught up in the Goldenberg web of transactions before its collapse in 1193. Earlier the commission heard that Roirie Investments, a company associated with President Kibaki and which held interest in fallen Pan African Bank, did not have control over the Management.
Mrs Leah Wambete of the Central Bank told the commission that Roirie was an ordinary shareholder in the bank. whose controlling interest was held by Mr Mohammad Asian,’ and his company Plaza Group. Mrs Wambele was testifying under cross-examination by Deposit Protection Fund lawyer Cecil Miller. The President is listed along with former President Moi and opposition leader Simeon Nyachae as ordinary shareholders in the bank.
