Chase Bank cooked books revealed

Image result for chase bank kenya

A report by Deloitte shows Chase Bank operated two general ledger accounts: CBK Settlement account number 04005459002 worth Sh9, 222,606,805 and Sundry Debtors account number 100004715 worth Sh1, 453,589,511.

Although the two accounts worth Sh10.67 billion were initially classified as other assets in Chase Bank’s accounting records, they were later reclassified as loans and advances during the 2016 statutory audit.

Chase Bank’s former general manager Makarios Agumbi and his credit counterpart James Mwaura were responsible for initiating and approving transactions posted in the two accounts.

Image result for cbk kenya

The two said Sh7.5 billion was used to buy 12 properties for the bank by related entities and Sh3.1 billion as sums unsupported by documentation.

However, a forensic audit revealed that only Sh1.3 billion of Sh7.5 billion spent on 12 properties can be ascertained and that Khan and Duncan Kabui, the Group Managing Director, owned shares in five companies that owned the properties.

An email dated November 11, 2015 from Khan asked Daviel Mavindu, who was a senior official at Chase Bank, now chief executive of Rafiki Microfinance to restrict circulation of management accounts of Riverside Mews Limited since they are ‘Personal stuff”.

Image result for deloitte kenya

The email contradicts Khan’s assertion that the related party was set up to hold investments for Chase Bank.

A review of emails also established other properties held by entities indicated as being under Chase Bank that had not been disclosed.

They include PEP Limited where Khan controls 99.9 per cent stake while Kabui and Ali Cheema own a paltry 0.1 per cent.

Image result for deloitte kenya

Musharaka agreements given to auditors as supporting documents to show that those entities were holding investments for the bank were signed a month before the bank was put under receivership when most of the properties listed were bought in 2010.

 

Leave a Reply

Your email address will not be published. Required fields are marked *