How Former Imperial Bank CEO Looted Billions Before Lender Collapsed
Ksh3.4 billion has been traced to eight bank accounts linked to former Imperial Bank managing director Abdulmalek Janmohamed.
This has been revealed by investigators who are trying to piece together evidence on how the lender lost Ksh34 billion over a period of 13 years before it collapsed.
The Kenya Deposit Insurance Corporation (KDIC) says that the late Mr Janmohamed ordered for the opening of accounts with fictitious names. The accounts were deposited with colossal amounts of money which were withdrawn and the accounts closed immediately. Records of the accounts were also wiped out from the bank’s system to avoid leaving trails. At least 12 companies were used to loot the bank.
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The list of companies used in the fraudulent scheme includes E. Tilley (Muthaiga) Limited, Primecatch Exports, Mara Fish Packers, J Fish Limited, Victorian Delight, Ruby Red Limited, Value Pak Foods, From Eden Limited, Aqualite Limited, Marmo Granito Mines from Tanzania, Uganda’s Marmo Marbles and Fishways Limited.
E. Tilley (Muthaiga) Limited alone has admitted to receiving Ksh10 billion from the bank and has expressed readiness to return the loot.
The scandal ropes in the current managing director Naeem Shah and his deputy, James Kaburu.
The two have admitted to making the illegal transfers but claim they did it on instructions from Mr Janmohammed.
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Forensic investigators, FTI Consulting, uncovered the eight banks accounts linked to Mr Janmohammed that were built with cash stolen from Imperial Bank.
The accounts were registered as Gulshan Account, which has Ksh364 million, Ali Shah account (Ksh264 million), Barkat Khan account (Ksh376 million), M Khan account (Ksh341 million), B Mohamed Account (Ksh337 million), Jionesh Shah account (Ksh50 million), Zulfikar account (Ksh376.5 million) and Hanscombe/Angelica account (Ksh1.3 billion).
The accounts were in the names Zulfikar Jessa, Zarina Mohammed, Angelica Industries Ltd and Barkat Khan, which court documents show were fake names.
“The bank claims jointly and severally against the deceased estate and the 2nd, 5th and 6th defendants the sum of Sh3.4 billion which amount was illegally and fraudulently received in trust from the SB accounts, which accounts is made up as follows,” says KDIC in court documents.
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Mr Janmohamed left a vast estate, including prime real estate properties, shares in blue chip companies and loads of cash in various banks.
He has shares in Butali Sugar Mills (5%), Imperial Bank (5%), Old Mutual, Apex Securities, Sandview Properties, Allgate Limited, Serenity Limited, Plymouth Holdings, Upperview Properties, Downtown Holdings and Nature Stone Queries.
Imperial Bank was placed under receivership in 2015, after the death of Janmohammed.
