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.
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.
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 Credit bank limited 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.
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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