MPs want ex-KPA boss probed over Sh3bn Chase Bank loss

Former KPA managing director Gichiri Ndua. FILE PHOTO | NMG
Former KPA managing director Gichiri Ndua. FILE PHOTO | NMG 

Parliament wants the anti-corruption agency to investigate former Kenya Ports Authority (KPA) managing director Gichiri Ndua for allegedly disobeying the Treasury, leading to the loss of Sh3 billion in the collapsed Chase Bank.

The Public Investments Committee (PIC) has urged the Ethics and Anti-Corruption Commission (EACC) to probe Mr Ndua for “contravening a government directive” that all State corporations invest surplus money in Treasury bills and bonds instead of depositing it in commercial banks.

The directive is contained in circulars No. 10 of July 1992 and No. 2 of February 1988.

Mr Ndua is said to have flouted the instructions by opening 10 deposit accounts at various banks.

The circulars give the procedures for board approvals for financial decisions.

Circular No. 10 of July 1992 further stipulates that the chief executive officer of a state corporation must obtain an approval from the board and the national Treasury for investments.

The committee says the KPA had a total of Sh2,956,547,000 in a fixed deposit interest-earning account at the time Chase Bank collapsed.

The parastatal cannot access the full amount as the lender was placed under receivership in April 2016.

“The deposit has been earning zero interest after the insolvency of the bank. Furthermore, some deposits were banked in December 2015, four months to the collapse of the Bank meaning that no due diligence was conducted by the Authority before identifying and opening the bank accounts,” said PIC chairman Adan Keynan in the 21st report on the audited books of accounts for State corporations.