Former Chase Bank chair-man Mohammed Zafrullah Khan will spend two more days in custody after he failed to raise Sh60 million bail. Khan was ordered to present two Kenyan sureties totalling Sh60 million to secure his freedom, pending trial. Senior Principal Magistrate Martha Mutuku issued the order on Thursday when Khan appeared to answer to charges of money laundering and conspiracy to defraud the bank over Sh1.6 billion.
Lawyer Cecil Miller said his client was unable to raise the amount and has been detained until Monday. The ex-Chase Bank boss was arrested by detectives from Banking Fraud Unit on Tues-day night and has since been in custody.
Miller tried to have him released on cash bail in vain. “They refused to release him. We are headed for court on Monday to try again,” Miller said. He said that the Sh60 million bail is high and unfair for his client and hoped the courts would be more lenient on Monday. “I hope they will reduce bail amount and allow him out on Monday so that he can seek medical attention,” said Miller.
Khan is among the seven senior Chase Bank managers that the Director of Public Prosecution (DPP) Keriako Tobiko has authorised for prosecution. The other six are yet to be arrested. “They know they are supposed to take plea and it is upon them to come forward to make things easier,” said Head of Banking Fraud Unit Ngatia Iregi. The bank was placed under receivership for 12 months after experiencing liquidity issues that led to a loss of Sh686 million for the financial year 2015. The lender’s Managing Director Duncan Kabui and Khan resigned following public concerns on the bank’s performance.
