The Kenyan wheels of justice have been painfully slow, and indeed they have proved this over the recent past! How would you rate it anyway? Well, the Central Bank of Kenya has accused the judiciary of stalling efforts to recover Sh14.9 billion lost in internal loan fraud that saw Chase Bank collapse in April 2016.
CBK Governor Patrick Njoroge said the wheels of justice are grinding slowly on the case where it sued former Chase Bank chairman Zafrullah Khan and a number of directors.
The governor was at pain to explain why Khan was still a board member at Rafiki Microfinance despite an audit report by Deloite describing him as the chief architect in the dubious loan scam that saw Chase Bank sent into receivership and subsequent buyout.
‘’The integrity of the banking sector in Kenya is solid. You must appreciate the work done since 2015. That particular case has been in court long enough. The wheels of justice is painfully slow, but we believe justice will prevail,’’ Njoroge said.
In mid-January last year, CBK and Kenya Deposit Insurance Corporation (KDIC) announced that Chase Bank customers will get the 75 per cent of the Sh76 billion deposits locked in the troubled lender in staggered phases over three years.
This was after sealing buyout deal with Mauritius lender SBM Bank.
Even so, the fate of the 25 per cent estimated at Sh19 billion is still uncertain.
“We will have to get as much from the shareholders or those that borrowed or those that took money out of the bank,’’ Njoroge said last year.
He added that CBK and KDIC will have to get the assets of those involved, freeze and sell them to get new liquidity that can be distributed to depositors.
‘’The point is we have not given up. With the objective of rising as much of the value and giving it back to the rightful owners who are the depositors we will use all these element,’’ Njoroge said.
In October last year, the banking regulator blocked 10 former senior executives at troubled Chase Bank from landing new jobs in other banks.
This was in line with guidelines that require every bank to seek clearance from the regulator upon retaining services of any person at a senior level.
This was after it emerged that some former senior officials at the bank had sought employment at Gulf African Bank and Sidian Bank without clearance.
Besides chairing board of directors at Rafiki Microfinance Bank, Khan is an advisory board member at United States International University’s USIU) Chandaria School of Business, Chairman of boards of directors at Genghis Capital and Orchid Capital.