Prime Bank and Fidelity Commercial Bank seeks to join Imperial Bank claims on fraud suit

Posted on October 29, 2015


Two commercial banks have moved to court as interested parties in the suit by Imperial Bank to reclaim looted funds from associates of its deceased managing director.

In court papers seen by #Bizextra, Fidelity Commercial  Bank notes that some of the assets listed for recovery are charged to them. The banks are now seeking to be enjoined in the bank

On Tuesday, Imperial Bank of Kenya through Senior Counsel George Oraro moved to court to reclaim in excess of Sh34 billion allegedly siphoned from it. Oraro in his submissions held that some 20 firms and individuals had on various dates colluded with the late Abdulmalek Janmohammed (Former CEO) to defraud the bank.

The Senior Counsel further held that W.E Tilley (Muthaiga) Ltd, a fish processing firm and the first respondent in the suit had committed to refund Imperial Bank some Sh10 billion. In his prayers however, Mr Oraro sought for an asset freeze on the estate of Mr Janmohammed and those of his close associates.

In a new twist, Prime and Fidelity banks are now opposing the claims noting that some of the assets listed are charged to them on various loan facilities.

“That I’m aware that the W.E Tilley (Muthaiga) Ltd on 22nd January 2014 was granted overdraft facilities to the tune of Sh125 million and bills discounting facilities to the tune of $1.5 million for which it offered two land parcels (LR 214/796 and 214/797) as collateral security,” reads an affidavit sworn before Muma and Kanjama advocates.

Fidelity Bank has already serve Oraro while Prime Bank is expected serve him in due course

Posted in: Uncategorized