Money Laundering For Former DP Rigathi Gachagua
Credit Bank Ltd (CBL) was on the spotlight before parliament during the impeachment hearing of former deputy president Rigathi Gachagua. The movers confirmed that CBL have been conduit in Gachagua’s money laundering allegations.
The bank is alleged to have facilitated monies to help Rigathi Gachagua acquire properties that are now questionable. The impeached veteran used Credit bank ltd to illegally acquire these properties, bypass financial fair plays as Deputy President.
The Ksh 36.5 million Fraud on A Businesswoman.
Reports recently emerged regarding a troubling case involving a businesswoman who claims to have lost millions through a series of fraudulent transactions facilitated by insiders connected to the bank.
After depositing Ksh 30 million into her account with the intention of securing a Standby Letter of Credit for her business expansion, she was guided to make further payments totalling Ksh 36.5 million to an alleged agent who presented herself as an intermediary for the necessary banking instruments.
What followed was a shocking betrayal, as this agent, along with purported accomplices within the bank provided her with forged documentation before swiftly siphoning off her funds and leaving her with no recourse.
The businesswoman reported the matter to the Directorate of Criminal Investigations (DCI) and is hoping to raise awareness about the alleged collusion between bank insiders and external fraudsters.
Controversial 1.9 billion NBK – Jivanjee estate Title Deed Loan.
Credit Bank Ltd again features prominently in the controversial Nairobi city county land title deed that was used by a developer to secure a Sh1.9 billion loan from National Bank of Kenya which has since frozen bank accounts of Jabavu Village Ltd.
Jabavu is linked to its sweet talker managing director Abdulkadir Hussein. He is among those behind the stalled proposed 67 floor tower in Nairobi, Hass Building. It was supposedly to be the tallest building in Africa but it never went one floor.
Those in the know say that currently, Hussein who also deals in Hass Petroleum products with links in the Middle East is at war with Chinese construction firm, China State Construction Engineering Corporation that was undertaking the project.
Other reports indicate that local banks have blacklisted Hass Petroleum credit notes and facilities, hence even unable to enjoy supplies of oil imported supplies.
According to our source, many Kenyans will have noticed that of late, Hass Petrol Stations are being sold to rival companies due to serious financial crisis.
In fact, the CBL deal that was brokered by one on its board of directors is said to have split the financial institution associated with the late tycoon Simon Nyachae down the middle.
A joke is cracked in the financial industry to the effect that the bank is composed of the oldest directors in Kenya who still value traditional banking core and friendship in giving out loans.
Mavoko land
Our source close to a Chinese victim well informed with the happenings at the bank revealed how a cartel of rogue CBL colluded to value a prime land in Mavoko that included a county sewerage to enhance its value. From the sewerage portion, the cartel ended up sharing part of the profits.
CBL in Mavoko land controversy was battling Chinese firm Edermman over LR. 12867/13(LR 36277). The Chinese firm moved to court to stop the bank from alienation, sale by auction or otherwise or in any way disposing off of the subject property pending hearing and determination of the appeal against the ruling delivered on July 28 2023.
Edermann is associated with Zeyun Yang as the managing director.
Zeyun Yang in court documents stated that the land in question was a good security for the foreseeable future as it is currently valued at Sh billion against an outstanding debt of Sh622,072,565 and fear CBL was to sell the suit property.
CBL documents were sworn on August 16 2023 by Francis Ngaruiya head of legal services. The bank was allowed to sale the land over Sh817 million debt but what happened to part of the land run by Mavoko Water and Sewerage Company remains a puzzle of mysteries. Did insiders within the bank collude with the firm to engage in dubious deals to land into millions of shillings?
Due to lack of clear cuts in loans procedures, including collaterals or sureties, senior staff are perfecting on the loophole to also engage in dubious deals with clients close to the shareholders and board of directors.
Jabavu directors just like the Chinese operations are shady.
Jabavu was awarded the contract to build affordable housing units in Nairobi’s Jeevanjee Housing -Estate in Ngara. Jabavu Village (K) Limited, a subsidiary of the Hass Petroleum Group, charged a public title deed of Jevanjee affordable housing project measuring 8.9 acres and obtained at Sh1.9 billion loan facility from NBK.
Jabavu has been battling bankruptcy suit of over Sh 60 million debts owed to CBL.
In fact the dubious Nairobi land deals took place same time Jabavu and CBL had failed to agree. A well informed source told our investigative team that Jabavu was given the multimillion loan by CBL without laid down procedures.
This adds to the scheme of internal bank trading that in recent past been costing CBL heavily.
Abdinasir Hassan is chairman of the board of Jabavu Village (K) Limited and chairman of the Hass Petroleum Group.
For Jabavu to square it out with insolvency court battle with CBL depended on Sh7.7 billion Jeevanjee housing project investments.
Jabavu had engaged another Chinese firm Zhongjiao Third Highway Engineering EA Company to do the Affordable Housing Project.
Credit Bank had sought to issue a statutory demand against Jabavu over Sh60 million debt.
The matter landed at High Court with Justice Freda Mugambi hearing the case.
Jabavu director Abdulkadir Hussein wanted notice to set aside the statutory demand issued by Credit Bank.
In the suit, Jabavu Village (K) Limited was the applicant while Credit Bank were the respondents.
“In conclusion therefore, I allow the notice of motion dated December 21 2022 and set aside the statutory demand dated December 1 2022. The respondents shall bear the costs of these proceedings.” Justice Mugambi ruled.
After falling out with CBL, using the Jevanjee public land title deed reached NBK on January 18 2023.
Documents from NBK dated January 18 2023 reveal, the public land in question, LR No 209/5458 registered as Nairobi Bachelors Jevanjee Estate Limited was charged by Jabavu Village for Sh1.9 billion.
What has surprised many is the fact, Sh1.9 billion NBK deal started in December 2022 at a time the insolvency suit by Credit Bank against Jabavu Village but the loan was given a green light come May 2023.
Jabavu Village (K) Limited is owned by Abdinasir Hassan, Abdulkadir Hussein and Abdirashid Jabane.
Hassan is the chairman of the board of Jabavu Village and chairman of the Hass Petroleum Group while Hussein is the managing director of Jabavu Village and a director of Hass Petroleum Group.
CBL case with Magnate Ventures of Stanley Kinyanjui.
Magnate was forced to convert Credit Bank’s liability towards a Chinese firm, into an asset as Credit Bank was ordered by court to honour their performance bond and settle a debt owed by Hebei Tuofa Telecommunication and Electric Manufacturing Ltd.
CBL court battles to clear themselves from the conflict between Magnate and the Chinese firm proved a headache as the High Court ruled that the Financier was bound by its guarantee which obligation becomes due upon demand.
It is said, a bank which issues a performance bond has to honour that guarantee in accordance to its terms.
The obligation arises immediately upon demand, according to the ruling that fixed CBL.
It all started when Chinese firm contracted Magnate Ventures to supply and install lines and transformers.
They agreed that the Chinese company would get a performance bond from Credit Bank.
The Chinese company did not pay, so Magnate Ventures sued Credit Bank to make them pay.
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