The Inspector General of Police Joseph Boinnet has ordered the immediate arrest of six National Bank of Kenya and two Chase Bank managers over unethical conduct in the running of the banks which are facing financial problems.
Mr Boinnet, however, gave the eight managers the option of presenting themselves at the Directorate of Criminal Investigations headquarters by 3.30 pm Friday.
The NBK managers to be arrested are: Managing Director Munir Mohammed, Executive Director Boniface Biko, Chief Credit Officer George Jaba, ICT Director Mohammed Abdalla, acting Chief Finance Officer Wycliffe Kivunira and Chris Kisire who is the Chief Finance Officer.
At Chase Bank, Mr Boinnet wants former Chairman Zafrullah Khan and former Group Managing Director Duncan Kabui.
This is the first time police are being involved in banking fraud investigations and arrests being made after suspicion of unethical dealings in banks. The five National bank officials were sent on compulsory leave a week ago following claims of mismanagement after the lender suffered a Ksh1.2 billion loss in its 2015 full year results. Chase bank was, on the other hand, placed under receivership on Thursday,April, 7 following massive customer withdrawals that affected the banks liquidity.
The withdrawals came after rife social media rumours that suggested the bank was collapsing after sinking into a Ksh742 million loss in 2015.
Since June 2015, Dubai Bank, Imperial Bank and now Chase bank have been placed under receivership in a move that has sent panic in the banking industry with depositors fearing for the safety of their cash. Most hundreds of accountholders have been withdrawing their money over fears that most banks could be distressed financially.
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