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Top ex-NBK bosses face fraud charge

National Bank manager Dennis Oduor Chumbe in a Nairobi court on September 20. PHOTO | PAUL WAWERU | NMG
National Bank manager Dennis Oduor Chumbe in a Nairobi court on September 20. PHOTO | PAUL WAWERU | NMG 

Two former managers of the National Bank of Kenya #ticker:NBK have been charged with fraudulently clearing six companies’ loan arrears amounting to over Sh1.056 billion owed to the lender.

Ex-Chief Credit Officer George Weke Jaba and Executive director Corporate Boniface Amunga Biko denied the charges when they appeared before Chief Magistrate Francis Andayi.

“We’re just victims of a scheme. We are servants and the master will be known soon,” said the duo.

But State prosecutor Solomon Naulikha rebutted saying “we’re yet to unleash our evidence.”

The prosecution told court that the duo intentionally planned to defraud their employer through making false entries in the loan book, which suggested that loans owed by various entities had been cleared.

The companies include Transafric Timber Ltd, Kaab Enterprises Ltd, Benwar Estates Ltd, General Mills East Africa Ltd, Tahir Sheikh Said Grain millers limited and Virgin Packaging Ltd.

“The offences were committed on diverse dates between December 3 and 17, 2015,” court heard.

On Wednesday Mr Dennis Oduor Chumbe, head of medium business at the bank, was also charged with similar charges.

He however faced only five counts of the charge of fraudulent false accounting of Sh313.6million and was freed on a Sh3 million bond.

While their lawyer Peter Omingo requested for a more lenient term for the duo, prosecution insisted that the bond terms given by the court were convenient because their offense relates to huge sum of monies.

Mr Jaba and Mr Biko were also freed on the same bond terms as Mr Chumbe.

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