Capital Markets Authority Goes after Ex-Chase Bank Bosses over Questionable KSh10b Loan – Tuko.co.ke
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The Capital Markets Authority (CMA) has penalised former Chase Bank bosses and board members over a KSh 10 billion questionable loan they issued in 2015.
The authority fined the lender's ex-managing director Duncan Kabui KSh 5 million for the offence.
Kabui was also suspended from holding any role in any company in the capital market for 10 years.
Chase Bank audit firm Deloitte was fined KSh 10 million.
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Also on the spot was the former chief executive officer Paul Njaga who was handed a KSh 5 million fine.
Board members Anthony Gross, Laurent Demey, Muthoni Kuria and Rafiq Sharrif were fined KSh 2.5 million each.
The quadruple were members of the audit and risk committee when the loan was issued. Richard Carter, another board member, was asked to pay a KSh 1 million fine.
In 2015, it was discovered that there was a KSh 14 billion hole after the Central Bank of Kenya initiated an audit.
Based on Chase Bank fillings of September 30, 2015, estimates show that customer deposits should have grown to KSh 128 billion by the end of 2015.
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However, the bank’s 2015 audited balance sheet shows the bank closing the year with only KSh 92.6 billion in deposits.
Insiders intimated that on some days in the last two months of 2015, deposits dropped to as low as KSh 82 billion.
In related news, commercial banks and microfinance institutions risk withdrawal of licences or ouster of directors if found in violation of consumer rights.
This was after the Central Bank of Kenya sought to investigate the lenders violating the rights through breaches like hidden charges, false information or advertisement, among others.
CBK said those found in violation of CBK guidelines on consumer protection will be fined KSh 5 million, and workers involved face KSh 200,000 penalty.
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Source: TUKO.co.ke
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